Adobe Q1 EPS Hits $6.06, Revenue $6.4B as CEO Narayen Plans Exit
Adobe's Q1 adjusted EPS was $6.06 versus estimates of $5.88, and revenue rose to $6.40 billion beating the $6.28 billion consensus. CEO Shantanu Narayen will step down after 18 years once a successor is named, while the company forecasts Q2 EPS of $5.80-$5.85 and revenue of $6.43-$6.48 billion.
1. First-Quarter Financial Results
Adobe reported adjusted Q1 EPS of $6.06, surpassing analyst expectations of $5.88. Total revenue reached $6.40 billion, topping the consensus forecast of $6.28 billion as subscription growth in Creative Cloud and Document Cloud remained robust.
2. CEO Transition Announcement
After 18 years at the helm, Shantanu Narayen will transition from his role as CEO once a successor is named. He will continue as board chair while a special committee, chaired by lead independent director Frank Calderoni, evaluates internal and external candidates.
3. Guidance and Market Reaction
Adobe projected Q2 adjusted EPS between $5.80 and $5.85 and revenue of $6.43 to $6.48 billion, above street estimates. The stock fell more than 5% in after-hours trading, adding to a 20% decline year to date amid concerns over AI-driven competition at the low end.