Adobe Beats Q1 Earnings Estimates, Announces CEO Will Step Down Adobe (ADBE) released its first-quarter financial results on Thursday following the market close. The company reported adjusted earnings per share (EPS) of $6.06, surpassing analyst expectations of $5.88. Revenue totaled $6.4 billion, exceeding the projected $6.28 billion. Adobe also provided guidance for the second quarter, with its outlook for revenue and adjusted EPS exceeding Wall Street forecasts. The earnings announcement coincided with the company’s announcement that CEO Shantanu Narayen will step down. Narayen, who has led Adobe for 18 years, will transition from his role as CEO. The board of directors has appointed Frank Calderoni, Adobe’s lead independent director, to chair a special committee tasked with overseeing the succession process. Calderoni will evaluate both internal and external candidates for the leadership role. Narayen will remain as chair of the board. The stock dropped more than 5% in after-hours trading following the news. This follows a year in which Adobe’s shares have declined over 20% and fallen nearly 40% over the past 12 months. Analysts and investors have expressed concerns about Adobe’s challenges in the AI disruption landscape and competition, particularly from companies like Canva, which has intensified pressure on Adobe’s lower-tier offerings. Looking ahead, Adobe’s second-quarter revenue outlook ranges between $6.43 billion and $6.48 billion, slightly above the $6.43 billion consensus. Adjusted EPS is expected to fall between $580 and $585, compared to the $570 forecast. The company’s upcoming Adobe Summit in late May has drawn attention as a potential catalyst for investor interest, with expectations of new product announcements or strategic initiatives.#shantanu_narayen #adobe #frank_calderoni #canva #adobe_summit
Adobe CEO Shantanu Narayen to Step Down After Appointing Successor Adobe’s chief executive officer, Shantanu Narayen, will leave his role after the company has named a successor, according to a statement released by the firm. Narayen, who has led the design software company since 2007, will remain as board chair to support the transition. The announcement came as Adobe shares fell 7% in extended trading, continuing a broader decline in software stocks driven by concerns over the impact of generative artificial intelligence. Narayen, 62, joined Adobe in 1988 as a vice president and general manager before becoming CEO in 2007. During his tenure, Adobe shifted from traditional software licenses to a subscription-based model with its Creative Cloud service. The company has since focused on expanding its offerings through generative AI, though its attempt to acquire Figma—a fast-growing design software company—was abandoned after regulatory pushback. Adobe paid Figma a $1 billion breakup fee as a result. In a statement, Frank Calderoni, Adobe’s lead independent director, praised Narayen’s leadership, calling him “the architect of Adobe’s transformation over the past 18 years” and highlighting his role in positioning the company for success in the AI-driven era. Narayen will stay on the board to assist the new CEO, following the example of co-founders John Warnock and Charles “Chuck” Geschke, who supported him when he became chief. Narayen’s leadership coincided with significant growth for Adobe. The company’s stock rose more than sixfold during his tenure, outperforming the S&P 500’s 350% gain over the same period. In a memo to employees, Narayen reflected on his time at Adobe, emphasizing the company’s history of innovation and its ability to attract top talent.#shantanu_narayen #adobe #creative_cloud #frank_calderoni #figma
