On June 12, Adobe fell 5.39% in after-hours trading, trading at $204.99/share, with turnover of $157 million.

On the news front, Adobe released its second fiscal quarter results after hours while simultaneously announcing that CEO Shantanu Narayen will step down after 18 years in the role. Narayen will remain until a successor is identified and continue serving as Board Chairman. The company had been accelerating its CEO succession plan, with two internal candidates identified alongside an external search focused on AI expertise.

Despite consensus expectations of approximately $6.45 billion in quarterly revenue (up ~10% YoY) and the company maintaining a 100% beat rate on EPS and revenue over the past two years, the CEO transition overshadowed otherwise solid results. Analysts noted the departure made steady earnings appear lackluster, with one observing that Adobe stock has declined nearly 40% since early last year — likely a key driver behind the leadership change.

Additionally, Stifel cut its target price from $400 to $350 and TD Cowen lowered its target from $310 to $285 ahead of earnings, compounding downward pressure amid persistent concerns over AI self-cannibalization of Adobe Stock business.

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