Chief Executive Shantanu Narayen, credited with leading the software company's transformation over the past 18 years, will step down after it finds a new leader for the AI era.
Digital media and marketing software firm Adobe beat estimates for its fiscal Q1 and with its outlook for the current quarter. But Adobe stock fell.
Adobe said on Thursday the company's chief executive officer Shantanu Narayen will transition from his position once a successor has been appointed.
Adobe CEO Shantanu Narayen says he will step down as CEO after successor has been named
Weekly Jobless Claims Improve Marginally.
Adobe heads into its first-quarter earnings report later on Thursday with its stock down roughly 18% so far this year. Amid booming valuations in the AI space, Adobe's stock below average performance has made the upcoming earnings a test of investor confidence.
Adobe is set to report earnings after the market closes Thursday, with traders anticipating a big move from the Photoshop maker's stock following the results.
The 2025 Q4 earnings season is nearly over, with more than 96% of S&P 500 companies already delivering their results. It's overall been another great cycle, with growth remaining strong while beats percentages aren't too far off from historical levels.
ADBE heads into Q1'26 results, with revenues expected at $6.28B and EPS at $5.88, as AI-powered Acrobat, Express and Firefly adoption aim to offset GenAI competition.
Beyond analysts' top-and-bottom-line estimates for Adobe (ADBE), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended February 2026.
The 2026 Q1 earnings season will take the spotlight when the big banks report their results in about four weeks, but we will already have seen fiscal February-quarter results from almost two dozen companies by then, including Oracle and Adobe.
ARR above 10%, margins expanding to 47%, and a third of the book already AI-influenced. Adobe isn't being disrupted—it's monetizing the disruption. The AI-threat thesis has crushed ADBE, off 57% from its peak. But revenues grew 10%, operating profit 29%, and ARR 11.5% in FY2025. The fundamentals haven't confirmed the selloff. Three things to watch: Total ARR trajectory, non-GAAP operating margin vs. the 47% target, and BP&C subscription growth as the Canva battleground indicator.