Will Adobe's New CEO Be Able to Pull the Stock Out of Its Slump?

Investors are set to get an update on the company’s financial results after the closing bell next Thursday. Charles-McClintock Wilson / NurPhoto / Getty Images Close Key Takeaways Adobe said Anil Chakravarthy will be its new CEO starting in December, succeeding Shantanu Narayen. Many investors will be eager to see how Chakravarthy will address worries about AI disruption. The stock has lost about a fifth of its value this year and more than half from its 2024 highs. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Ask anything to get started... ASK After a yearslong slump for Adobe’s stock, can a new CEO drive a comeback? The creative software giant late yesterday named Anil Chakravarthy its new CEO starting in December, ending months of speculation about who would succeed Shantanu Narayen after his plan to step down was announced back in March. The initial response from investors isn’t encouraging. Adobe shares, which coming into today’s session had lost roughly 20% of their value since the start of the year, were down 4% in premarket trading Friday. Chakravarthy, who’s been at Adobe ( ADBE ) for six and a half years and currently leads the company’s customer experience unit, is “not who many expected,” according to analysts at Jefferies. They thought the job would go to 19-year veteran and creative unit head David Wadhwani, who left shortly after the announcement. “With his departure, we expect others to follow as Anil reshapes the organization,” the Jefferies analysts wrote. “With Adobe facing significant headwinds from AI, we expect the board of directors may also see changes to onboard deeper AI expertise.” Why This Matters to Investors Adobe stock, much like shares of other software companies, has been hit hard by investor concerns about AI disruption. The leadership transition at Adobe adds another layer of uncertainty, and the new CEO will need to give investors confidence that the company is equipped to adapt to the challenges and opportunities posed by AI. Given Chakravarthy’s background, Jefferies suggested he could be “well tuned to the needs of Adobe’s large enterprise clients,” and said they look forward to “hearing his views on running the creative side of the business and transforming it for the new age of AI.” Narayen said in a release that he “could not be more confident” that Chakravarthy is “the right person to lead Adobe’s growth in an AI-driven era.” Narayen will become executive chair and work closely with Chakravarthy through the transition, the company said. Adobe highlighted Chakravarthy’s role in leading the development of several “category-defining products using the power of AI to deliver breakthrough customer experiences,” including Adobe CX Enterprise, GenStudio and Brand Visibility. “In aggregate, we believe the announcement is a positive in relation to addressing the uncertainty,” JPMorgan analysts told clients, while investors watch for Chakravarthy’s next moves. Investors are set to get an update on the company’s financial results after the closing bell next Thursday. Do you have a news tip for Investopedia reporters? Please email us at [email protected] Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Adobe. “ Adobe Announces Anil Chakravarthy to Become President and CEO and Shantanu Narayen to Become Executive Chair on December 1, 2026 .” Jefferies. “New ADBE CEO Not Who Many Expected.” JPMorgan. “Adobe Inc. Much Awaited CEO Appointment Announced with Board Opting for Internal Candidate; See Positive in Moving Past Uncertainty.” Business Wire. “ Adobe to Announce Q3 FY2026 Earnings Results on Sept. 10, 2026 .” Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Get personalized, AI-powered answers built on 27+ years of trusted expertise. ASK Read more News Company News Partner Links Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.