Adobe Picks Anil Chakravarthy as CEO Amid Persistent AI-Driven Stock Pressure

Adobe (ADBE) announced on Thursday that Anil Chakravarthy will become its next president and chief executive officer. He succeeds Shantanu Narayen, who is leaving the role after 18 years at a time when artificial intelligence concerns are hurting the software company's share price.

Narayen will move to the position of executive chair and will assist Chakravarthy with the transition. The leadership change becomes official on Dec. 1, when Chakravarthy also joins Adobe's board.

The Leadership Handoff

Most recently, Chakravarthy was in charge of Adobe's customer experience orchestration unit and its worldwide field operations. He arrived at Adobe nearly seven years ago after serving as CEO of Informatica, an enterprise data management firm. That business had worked with Adobe under Narayen's leadership.

“Adobe’s opportunity ahead is limitless with our track record in creating new market categories and world-class products. Anil is an experienced transformational leader who leads with values, integrity and a deep knowledge of our business.”

Shantanu Narayen, Adobe’s outgoing CEO, in a statement

“A lot of the reason I came was the opportunity to work with him and work with the leadership team at Adobe.”

Anil Chakravarthy, Adobe’s incoming CEO, in a 2021 interview with CNBC

By contrast, David Wadhwani said he will depart Adobe after leading its creativity and productivity segment for nearly five years. Observers had considered him a strong internal candidate for the top job because of his role in Adobe's attempt to purchase the design company Figma. Regulators forced the two firms to abandon that transaction in 2023.

Why Adobe Stock Keeps Falling

Adobe is making the CEO switch while its shares continue to struggle. The stock lost 25% in 2024 and another 21% in 2025, and it is down 18% so far in 2026. After Thursday's announcement, the stock slipped about 2% in after-hours trading.

At the same time, the drop mirrors a broader decline among software stocks that are under pressure because of AI concerns. Investors worry that generative AI products could reduce the need for paid subscription software. Other software companies have also felt the pinch as inexpensive or free AI alternatives challenge legacy subscription models.

Whether Chakravarthy can turn the situation around will hinge on Adobe's own AI offerings. Starting in December, he must show they can outpace lower-cost competitors.