In early March 2026, Shantanu Narayen, the CEO of Adobe, announced his intention to resign after 18 years in the position while indicating that he will continue to serve as chair of the board. This decision comes simultaneously with Adobe’s release of its financial results for the first quarter of the fiscal year, which showcased record revenue growth driven by AI initiatives. Narayen's leadership marked a significant transformation for Adobe, as the company expanded from approximately 3,000 employees and less than $1 billion in revenue when he joined in 1998 to more than 30,000 employees and over $25 billion in revenue today. Narayen plans to work with the board of directors and lead independent director Frank Calderoni to identify his successor, ensuring a smooth transition. In his memo to employees, he emphasized the importance of the AI-driven era, which he believes presents significant opportunities for creativity and new workflows. However, as industry dynamics shift with the rise of AI, concerns linger regarding potential impacts on traditional software tools, leading to fluctuations in Adobe's stock prices and positioning the company amid a larger debate on the future of software in an AI-centric landscape. This backdrop of financial performance and changing market demands has contributed to the timing of Narayen's exit, reinforcing the importance of selecting a suitable leader for Adobe's next chapter.