Adobe beats, CEO signals change
Adobe posted Q1 revenue of $6.40B (+12% YoY) and non-GAAP EPS $6.06 — both beat expectations — while total ARR hit $26.06B and record Q1 operating cash flow reached $2.96B; CEO Shantanu Narayen announced a transition that spooked after-hours trading [](https://x.com/i/status/2032196987802542516).
Adobe said Narayen will transition from the CEO role once a successor is appointed news.adobe.com and that he will remain chair of the board during the handover sec.gov; the company published the leadership update on March 12, 2026. news.adobe.com Shares tumbled roughly 7% in extended trading after the announcement, according to CNBC’s market report. cnbc.com Other outlets measured the post‑announcement move as a wider premarket drop of about 6.7%–8% on Friday. 247wallst.com Bloomberg said Adobe issued a “tepid” sales forecast alongside the leadership news, citing cautious guidance that helped drive investor concern. bloomberg.com Analysts and coverage noted that the pullback reflects heightened scrutiny over Adobe’s AI execution and leadership continuity amid a broader software selloff this year. cnbc.com Company filings show the business still exited the quarter with $22.22 billion in Remaining Performance Obligations and a current RPO ratio of 67%, figures Adobe disclosed in its SEC filing as the board begins the CEO search. sec.gov The Register reported Narayen told the board of his decision “some time ago,” signalling a planned — not abrupt — succession process. theregister.com
