Adobe posts record Q1 revenues, CEO to exit

(Sharecast News) - Software giant Adobe said on Thursday evening that long-time chief executive Shantanu Narayen will step down from the role as the company looks to find a new head to guide it through the artificial intelligence age. Narayen's exit comes as Adobe posted a first-quarter profit of $1.89bn, or $4.60 on a per share basis, up from $1.81bn, or $4.14 per share, in Q125, while revenues rose 12% to a record $6.4bn - ahead of Wall Street expectations of $6.28bn.

Adobe said AI-first annualised recurring revenues had more than trebled year-on-year, ending the quarter at $26.06bn, while total customer group subscription revenues increased 13% to $6.17bn.

However, shares headed south in extended trading after Narayen, who joined the firm in 1998, announced his departure.

"This is not a goodbye by any means, but a time for reflection," Narayen said. "The next era of creativity is being written right now - shaped by AI, by new workflows and by entirely new forms of expression."

As for the second quarter, Adobe expects revenue to come in between $6.43bn to $6.48bn, while adjusted earnings per share were pegged to be in the vicinity of $5.80 to $5.85. Adobe also reiterated its FY guidance.

As of 1000 GMT, Adobe shares were down 7.80% in after-hours trade at $248.74 each.







Reporting by Iain Gilbert at Sharecast.com