Adobe Shares Fall After CEO Succession and Executive Departure

Adobe (NASDAQ:ADBE) shares fell 3.4% in pre-market trading to $276 after the software company announced a leadership transition following Thursday’s market close, naming Anil Chakravarthy as its next president and chief executive.

Chakravarthy will take over on December 1, 2026, succeeding Shantanu Narayen, who has led Adobe for more than 18 years. Narayen will move into the role of executive chair.

The announcement was followed separately by news that David Wadhwani, who has led Adobe’s creativity and productivity business for nearly five years, said in a LinkedIn post that he would leave the company. Wadhwani had previously been considered a potential candidate for the chief executive position.

Adobe Leadership Changes Continue

The two developments add to a series of management changes at Adobe. Chief Financial Officer Dan Durn left the company in June.

The latest appointments come ahead of Adobe’s fiscal third-quarter earnings, scheduled for September 10, when investors will receive an update on the company’s financial performance and outlook.

The broader U.S. equity market was relatively stable, with the Nasdaq gaining 0.5% and the S&P 500 trading close to unchanged.

Analysts Adjust Adobe Price Targets

Several analysts have recently revised their views on Adobe ahead of its quarterly results.

Barclays increased its price target to $295 from $250 while maintaining an Equalweight rating. RBC Capital raised its target to $315 from $285 and retained an Outperform rating.

Morgan Stanley took a different position, downgrading Adobe to Underweight and setting a $240 price target. The firm cited concerns that competition from artificial intelligence could affect the recurring revenue generated by Adobe’s Creative Cloud business.

Adobe Shares Trade Below 52-Week High

Adobe shares have declined approximately 18% during 2026 after falling more than 21% in 2025.

The company has been expanding its own artificial intelligence products, including its Firefly platform, while competing with other providers of generative AI and creative software, including Figma and Canva.

Following the leadership announcements, Adobe shares traded at $276 in pre-market activity, below their 52-week high of $370.86. Investors will next assess the company’s fiscal third-quarter results on September 10 for further information about its operating performance and AI strategy.

Adobe stock price