Adobe Names Anil Chakravarthy CEO But AI Fears Are Impacting the Stock

Adobe (ADBE) named Anil Chakravarthy as its next president and CEO on Thursday. He replaces Shantanu Narayen, who is stepping down after 18 years as AI concerns weigh on Adobe’s stock.

Narayen will become executive chair and support Chakravarthy through the handover, which takes effect Dec. 1. Chakravarthy will also join Adobe’s board at that time.

The Leadership Handoff

Chakravarthy most recently led Adobe’s customer experience orchestration unit and its worldwide field operations. He joined Adobe nearly seven years ago after serving as chief executive of Informatica, an enterprise data management company. That company had partnered with Adobe under Narayen.

“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

In contrast, David Wadhwani announced he will leave Adobe after leading its creativity and productivity business for nearly five years.

Observers once viewed him as a top CEO contender for his role in Adobe’s bid to acquire design firm Figma. Regulators forced the companies to scrap that deal in 2023.

Why Adobe Stock Keeps Falling

The CEO change comes as Adobe shares remain under pressure. The stock fell 25% in 2024 and another 21% in 2025, and it is down 18% so far in 2026. Shares slipped roughly 2% in extended trading following Thursday’s announcement.

Meanwhile, the decline mirrors a wider retreat among software stocks slumping on AI fears. Investors worry generative AI tools could erode demand for subscription software.

Software peers have faced similar pressure as free or low-cost AI tools threaten legacy subscription models.

However, whether Chakravarthy can reverse the trend depends on Adobe’s own AI tools. He will need to show they can outpace cheaper rivals starting in December.

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