Adobe CEO steps down, shares fall 22% after earnings
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- Adobe announced Shantanu Narayen will step down as CEO after 18 years, remaining as board chair.
- Adobe reported Q1 revenue of $6.40 billion, beating estimates of $6.28 billion.
- Adobe posted adjusted earnings of $6.06 per share, above the $5.87 consensus estimate.
- Adobe’s Creative and Marketing Professionals subscription revenue reached $4.39 billion, topping the $4.32 billion forecast.
- Adobe forecast Q2 revenue of $6.43 billion–$6.48 billion, matching the low end of analysts’ $6.43 billion estimate.
- Grace Harmon of Emarketer said investors are skeptical about Adobe’s AI monetization timing, which may have contributed to the stock’s roughly 22% decline this year.
Why it matters: Shareholders see a 22% loss as investors doubt Adobe’s ability to monetize its AI push, while the new leadership must balance disciplined execution with aggressive AI spending to restore confidence and sustain the company’s subscription‑driven growth, a critical factor for its valuation.
