Adobe stock price today: Why ADBE stock dropped as CEO Shantanu Narayen steps down after 18 years

Adobe stock falls after CEO exit: Adobe (ADBE) shares dropped sharply in premarket trading on Friday after the company announced that CEO Shantanu Narayen is stepping down following an 18-year tenure. The stock fell more than 8%, closing Thursday at $269.78 and dipping to $249.30 in early trading.

Adobe (ADBE) Stock Today Falls After CEO Shantanu Narayen Announces Exit

Narayen will remain as chair of Adobe’s board until a successor is found. Meanwhile, Frank Calderoni, Adobe’s lead independent director, has been appointed chair of the special committee tasked with identifying the company’s next CEO, both from within and outside the firm, as per a Yahoo Finance report.

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Shantanu Narayen Shares Message With Employees About Leadership Transition as Adobe Begins CEO Succession Search

In a note to employees, Narayen expressed his deep connection to the company, saying, "I love Adobe and the privilege of leading it has been the greatest honor of my career," adding, "I will ensure that I set up Adobe for its next decade of greatness with the right leader and executive team, in partnership with the Board, while continuing to deliver on our FY26 Must Wins," as quoted by Yahoo Finance.

He also said that, "The opportunity in front of us is extraordinary," adding, "Together, we are uniquely positioned to lead it — and I remain deeply committed to doing so as we look ahead and prepare to name Adobe’s next CEO. I am more confident than ever that Adobe’s best days are still to come," as quoted by Yahoo Finance.

Adobe Q1 Earnings Beat Analyst Expectations

Meanwhile, Adobe posted strong first-quarter results, with earnings per share of $6.06 on $6.39 billion in revenue, beating analyst expectations of $5.88 EPS and $6.28 billion in revenue. Looking ahead, Adobe forecasts Q2 revenue between $6.43 billion and $6.48 billion, aligning with analyst expectations of $6.43 billion.

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FAQs

Why did Adobe stock fall in premarket trading?
Adobe stock fell more than 8% in premarket trading after the company announced that CEO Shantanu Narayen will step down after 18 years in the role.

Who is leading the search for Adobe’s next CEO?
Frank Calderoni, Adobe’s lead independent director, will chair the special committee responsible for finding the next CEO.