Adobe announced that CEO Shantanu Narayen will step down after an 18-year tenure and the board has launched a search for his successor, triggering a premarket share drop of over 7%.

For fiscal first quarter 2026, Adobe posted adjusted earnings of $6.06 per share on $6.40 billion revenue, surpassing analyst expectations of $5.86 per share and $6.28 billion. Despite the beat, the share reaction reflected investor concern over leadership transition.

At quarter end, annualized recurring revenue reached $26.06 billion with remaining performance obligations of $22.22 billion, while net new ARR fell 11% year-over-year to $400 million. Adobe issued fiscal second-quarter guidance of $5.80–$5.85 EPS on $6.43–$6.48 billion revenue, exceeding prior estimates.