As the wave of artificial intelligence reshapes the traditional software industry, Adobe (ADBE.US) is accelerating its plans to find a new chief executive officer.
Sources indicate that the company has identified two key internal executives as leading succession candidates, while also engaging a search firm to scout for external candidates globally with AI expertise.
The internal frontrunners currently attracting the most attention are the leaders of Adobe's two core businesses: David Wadhwani and Anil Chakravarthy.
Concurrently, the company has retained Heidrick & Struggles to identify external candidates, focusing on executives with experience in large-scale AI product development or commercialization.
It is understood that during the screening process, Microsoft's Executive Vice President Charles Lamanna engaged in discussions with Adobe but ultimately decided not to pursue the role further.
Lamanna currently oversees the development of several Microsoft product lines and leads the application of AI technology in enterprise software.
In March of this year, current CEO Shantanu Narayen announced he would step down from the CEO role upon the identification of his successor but will continue to serve as Chairman.
Narayen has led Adobe for nearly two decades.
Markets have long considered David Wadhwani the most likely successor.
Wadhwani currently heads Adobe's core creative software business, which includes flagship products like Photoshop and Acrobat.
This division contributed approximately $17.7 billion in revenue last year, representing about three-quarters of Adobe's total revenue.
He previously left Adobe in 2015 to serve as CEO of application monitoring software company AppDynamics.
AppDynamics was acquired by Cisco in 2017 for $3.7 billion.
Following that, Wadhwani served as a partner at venture firm Greylock before returning to Adobe as an Executive Vice President in 2021.
The other prominent internal candidate, Anil Chakravarthy, oversees Adobe's marketing and data analytics software business.
This division generated $5.9 billion in revenue for the 2025 fiscal year, accounting for roughly a quarter of the company's total revenue.
Prior to joining Adobe, Chakravarthy served as CEO of data management software company Informatica.
Expanding the Search Scope Amid Pressure
Analysts suggest that Adobe's decision to launch a broad external search for a CEO also reflects increasing pressures the company is currently facing.
In recent years, with the rapid rise of AI-native tools, Adobe is confronting intensifying competition.
There is market concern that generative AI could erode the moat of traditional software like Photoshop, potentially leading Adobe and other SaaS companies to face valuation reassessments.
Data shows that since its peak in early 2024, Adobe's stock price has declined by a cumulative 59%, making it a notable example of the market's so-called "SaaS winter."
KeyBanc analyst Jackson Ader noted that two years ago, Adobe likely would not have initiated such an extensive external CEO search.
"Back then, it was widely assumed that Wadhwani was the natural heir apparent. But the company's stock performance and AI competitive pressures have prompted the board to want to demonstrate a more comprehensive and open selection process," Ader said.
Navigating the AI Transition
Despite Wall Street's worries about AI disrupting Adobe's core business, the company has been actively pushing forward with its own AI transformation in recent years.
Adobe has launched its own generative AI models, such as Firefly, emphasizing the copyright-safe advantages of its generated content.
The company has also been consistently integrating AI features into products like Photoshop, Illustrator, and Acrobat.
However, markets remain unconvinced that these measures are sufficient to prevent AI startups from capturing market share.
Evercore ISI analyst Kirk Materne pointed out that some investors hope to see a CEO with a genuine "AI-native background" take the helm, but there is no "magic bullet" solution in reality.
"Adobe is a large ship; you can't turn it on a dime," Materne stated.
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