Adobe names Anil Chakravarthy as new CEO, succeeding Shantanu Narayen after 18-year tenure

Faizan Farooque Sun, September 6, 2026 at 12:13 PM PDT | 5 min read

• ADBE

Adobe is handing over control to a new CEO after the current CEO spent 18 years in the role, as artificial intelligence is set to disrupt the software company that powers Photoshop and Creative Cloud.

Adobe (ADBE) is undergoing one of its largest leadership overhauls ever at a particularly challenging time for investors.

Anil Chakravarthy will become president and CEO of software giant Adobe, succeeding Shantanu Narayen, who has been at the helm for more than 18 years. Chakravarthy will take over on Dec. 1, and Narayen will move to the role of executive chair.

But Wall Street's response hinted at the scale of the task confronting Adobe's new boss.

Adobe shares fell nearly 7% on Sept. 4, after the leadership announcement and David Wadhwani's departure. Wadhwani ran Adobe's creativity and productivity business and was a potential CEO candidate.

After falling more than 21% in 2025, the stock had fallen 18% in 2026 before Friday, Sept. 4.

But the greater issue is that generative AI is coming for the industry that Adobe has controlled for decades, and investors are waiting for proof that Adobe can transform its own AI technologies into enough growth to secure its business.

Adobe's Leadership Shakeup Comes at a Critical Moment

Chakravarthy joined Adobe in 2020 after serving as CEO of Informatica. He oversaw Adobe's Digital Experience business first, then ran international field operations and finally led its Customer Experience Orchestration business.

That background might be a key hint as to where Adobe is headed.

Adobe says it's using agentic AI more in its corporate solutions to tailor interactions enterprises have with their consumers.

Narayen described Chakravarthy as a "transformational leader" with profound knowledge of Adobe's business.

But the succession also heralds another big shift.

Wadhwani, who has overseen Adobe's creative and productivity division for almost five years, said he was stepping down after Chakravarthy's appointment. Wadhwani was said to be a possible contender for the CEO role.

Related: Citi resets Adobe stock price target

So Adobe is not just replacing the CEO. The corporation is also facing what may be the largest technical challenge to its creative-software brand since cloud computing emerged.

Now investors have to decide whether Chakravarthy can take that disruption and reshape it once again.

Adobe makes dramatic leadership change as AI rivals close in — NurPhoto / Getty Images

Wall Street Sees a Major AI Threat to Adobe

Adobe's main challenge is that it lacks artificial intelligence.

The business has been working hard to grow Firefly and add generative AI capabilities to products like Photoshop and its larger creative suite.

The question is whether AI is changing the economics of creative software quicker than Adobe can commercialize those goods.

Morgan Stanley downgraded Adobe to Underweight from Equalweight in July and slashed its price target to $240 from $365. The firm cited several simultaneous transitions, including Adobe's freemium strategy, leadership changes, and increased AI investment.

More fundamentally, Morgan Stanley questioned the vulnerability of Creative Cloud's recurring income to being replaced by generative AI.

This is the heart of Adobe's problem.

AI technologies are democratizing the ability to create complex images and video that previously required specific technical skills, which took time and practice to master. Adobe is also competing with firms like Canva and Figma, and newer generative AI platforms are transforming the way people create digital material.

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