Adobe said CEO Shantanu Narayen will step down after a successor has been appointed, and he will remain as the design software company’s chair. Shares tumbled 7% in extended trading.
Narayen joined Adobe in 1998 as a vice president and general manager, and he became CEO in 2007. Under Narayen, Adobe pushed from software licenses to subscriptions to its Creative Cloud application bundle, and the company is now working to expand through generative artificial intelligence. He sought to acquire fast-growing design software company Figma, but regulators pushed back, and the companies called off the deal, resulting in Adobe paying Figma a $1 billion breakup fee.
Just about every creator using Abode figured the ludicrously overbroad terms and conditions were designed to let Adobe train their AIs on creator’s work, and make them pay for the privilege of doing so to boot.
Narayen, 62, is lead independent director of Pfizer in addition to his responsibilities at Adobe, where he received $51 million in total compensation for the 2025 fiscal year, according to a filing. He owns $118 million in Adobe shares, according to FactSet.
Most CEO’s limit their work to one company enraging their customers.
Adobe shares are down nearly 23% so far in 2026 as of Thursday’s close, while the S&P 500 index is down about 3% in the same period.
Adobe’s stock is more than 60% off its record from 2021 after dropping more than 20% in each of the past two years.
People don’t like companies forcing AI into every crevice of their product line (see also: Microsoft), and they don’t like being forced into a subscription model without any options (ditto).
That previously mentioned lawsuit from Uncle Sam over Adobe making it difficult to cancel subscriptions has been settled. “Adobe agreed to pay $75 million to the Department of Justice and an additional $75 million worth of free service to its customers.”
Here’s Clownfish TV on how Adobe has alienated their own user base:
Kneon: “We’ve been covering Adobe because Adobe’s stock is in the gutter. It’s been declining for the last two years now. Adobe is chasing after AI when their core customer base is made up of creatives, who a lot of them don’t want to use AI, but they’re shoving AI into everything.”
K: “They’ve had some some very aggressive anti-consumer practices. They were apparently training their AI on people’s documents stored in the cloud. Two or three months ago they were going to pull the plug on an industry standard animation software package and people were panicking about that. This company has made nothing but anti-consumer bad decisions for three or four years now, and it finally has caught up with them, and now their CEO is leaving.”
K: “Nobody knows what the hell this company is now.”
Geeky Sparkles: “People can’t trust them. They all, especially animators in those industries, they’re looking for another program to use cuz they were all like it was the standard. Well, now they’re trying to find something else because, you know, they said they weren’t going to take it away as fast as they originally said. But you can’t trust them. They just dropped this on them before. You know, the rug’s going to be pulled out from underneath them.”
K: “AI is happening very quickly, but the people that use your tools, a lot of them afraid of being replaced with AI.”
Adobe’s entire business model has been creating tools for creatives, and now they’re going “Hey companies, you can use our AI tools to completely replace all those expensive creatives!”
K: “Again, what separates Adobe from any other AI platform at this point?”
GS: “This is why you’re going to fail. I’m just going to tell you know what, let me save you a lot of trouble. This is why you fail. Investors want AI. Investors don’t know what the fuck they’re doing. Investors keep hearing AI is the coolest thing ever. And they keep pushing for these things. Like when they hear layoffs, they immediately get excited and invest. It’s not going to go the way you think it is. And especially when it comes to Adobe, when you’re talking about artist software, talking about aggressive AI, it’s probably the kiss of death.”
GS: “When it comes to things like Adobe, you’re going to lose money, and you kind of deserve to lose money, because some things you can’t shove aggressive AI into.”
There’s a place for IA, but Adobe didn’t make it an extra or a stand-alone, they shoved it into everything and said if their users didn’t like it, then tough.
GS: “They basically just came out and said was, ‘Okay, all the stuff you’re relying on, we’re gonna we’re getting rid of.’ It’s really stupid.”
K: “They were like, oh yeah, we’re an AI company now.”
K: “They’re all like, ‘Oh yeah, you gotta subscribe. You gotta subscribe. Subscribe.’ Because they don’t like it when you just drop a couple hundred bucks and you own the thing outright.”
Microsoft CEO Satya Nadella might buy Adobe.
GS: “Hey, I’m not trying to be a dick here. I am going to mention it. Why are all these CEOs sound like they’re all Indian?”
K: “Because they are.” And they seem to be the ones wanting to push AI into everything.
K: “See also Google. See also YouTube. See also…I’m just I’m just saying, you know, it’s statistically significant.”
Like Tulipmania and the South Sea Bubble, AI madness is going to become a cautionary tale of the madness of crowds for centuries to come…