Shantanu Narayen, Adobe's CEO for 18 years, has resigned amid investor skepticism over the company's existence in an AI-dominated era.
Narayen will remain as CEO until a successor is appointed and continue as board chairman, the company said in a statement.
The surprise transition comes after a quarterly fiscal report that beat analyst estimates but failed to calm nerves about the stock, which has declined 23% in 2026 alone.
Narayen's legacy is viewed as legendary within the software industry, transforming Adobe from a seller of boxed desktop software into a subscription-based powerhouse with revenue growth of nearly sixfold.
However, the market's "what have you done for me lately" attitude with regard to AI has weighed heavily on Narayen, with competitors offering cheaper, automated ways to generate visual media.
The departure comes at a paradoxical moment for Adobe, with the stock down nearly 40% since early last year, despite resilient underlying financial metrics.
The board's search for a successor will likely focus on a leader capable of accelerating AI monetisation, with investors concerned about the "pace of innovation" relative to rivals.
