Adobe CEO Shantanu Narayen to Quit After 18 Years; Stock Plunges 7%

• Shantanu Narayen to step down as Adobe CEO after 18 years, will remain on the board as Chairman.
• Adobe shares fell over 7% post-announcement, hitting a three-year low amidst skepticism about AI era growth.
• Narayen's tenure saw Adobe's annual revenue grow six-fold to $24 billion and a successful transition to a subscription model.
• Adobe faces competition from AI startups despite integrating AI tools like Firefly to maintain market share.
• Q1 Annual Recurring Revenue for AI-first products tripled, but Q2 revenue projection is at the lower end of analyst expectations.