Adobe names insider Chakravarthy CEO, Narayen transitions to executive chair

Shares fell 1.7% in after-hours trading on Thursday.

Sept. 3 (Reuters) - Adobe ADBE.O named Anil Chakravarthy as successor to long-time CEO Shantanu Narayen on Thursday, charging the insider with taking on a wave of new AI rivals threatening its design software dominance.

Narayen, who has served as CEO for over 18 years, will transition to executive chair, the company said.

Chakravarthy takes the reins as Adobe tries to reassure investors worried about disruptions to its business from advances in AI technology.

Its shares, in parallel with other software firms perceived to be vulnerable to a shakeout, have fallen around 18% this year after declining over 21% in 2025.

Although the firm has looked to strengthen its offerings with AI in focus, some analysts have remained skeptical.

Still, the Photoshop maker raised its annual profit forecast in June, reflecting growing demand for its AI products and tools that are central to its strategy to hold on to its lead over challengers like Figma FIG.N and Canva.

Adobe also announced the exit of finance chief Dan Durn the same month, adding to uncertainties until a permanent successor is named.

Chakravarthy's appointment comes after Adobe in March announced plans for Narayen to step down once a successor was named, ending a tenure in which he helped turn flagship products such as Photoshop, Illustrator, Premiere Pro and InDesign into household names among creatives worldwide.