Adobe Shares Slip

Adobe reported record Q1 revenue of $6.40 billion and total annualized recurring revenue (ARR) exiting the quarter of $26.06 billion, with subscription revenue up 13% year‑over‑year. (adobe.com) Creative & Marketing Professionals subscription revenue totaled $4.39 billion (12% YoY) while Business Professionals & Consumers subscription revenue was $1.78 billion (16% YoY). (adobe.com) CEO Shantanu Narayen said he will transition from the CEO role once a successor is appointed, will remain as chair of the board, and the board has appointed Lead Independent Director Frank Calderoni to chair the special committee overseeing the search. (news.adobe.com) The Justice Department filed a proposed stipulated order on March 13, 2026 requiring Adobe to pay $75 million in civil penalties and provide $75 million in free services to resolve alleged ROSCA violations, naming two employees in the filing and mandating clearer disclosure of any Early Termination Fee and easier cancellation processes. (justice.gov) Adobe shares fell sharply after the leadership announcement and subsequently hit new 52‑week lows, trading as low as $244.27 on March 19 and $237.38 on March 25 according to market data. (marketbeat.com) The company reported record operating cash flow of $2.96 billion for Q1 and repurchased approximately 8.1 million shares during the quarter, while issuing Q2 revenue guidance of $6.43 billion to $6.48 billion. (adobe.com) Adobe told investors that AI‑first ARR more than tripled year‑over‑year and disclosed platform engagement metrics — monthly active users across Creative Cloud, Acrobat, Express and Firefly exceeded 850 million and Express adoption spans about 99% of Fortune 500 companies — while Firefly subscription and credit‑pack ending ARR grew 75% and generative credit consumption rose 45%. (adobe.com)