Adobe shares declined in extended trading after the company announced that CEO Shantanu Narayen will step down after 18 years in the role once a successor is found. The announcement overshadowed the company’s strong quarterly report, which came in above analysts’ expectations.

In the first fiscal quarter, Adobe reported adjusted earnings per share of $6.06 as revenue rose 12% year over year to a record $6.4 billion. Both figures exceeded analysts’ forecasts, and the company also issued an optimistic outlook for the second quarter.

However, the positive financial results failed to support the stock. Shares of the company behind Photoshop and Illustrator dropped more than 7% in extended trading, continuing the negative trend that has persisted in the market for some time.

The main pressure on the stock comes from investor concerns about rising competition and the impact of artificial intelligence on Adobe’s business. Over the past two years, the company’s shares have lost about 60% from their 2024 highs, while the CEO transition adds further uncertainty around its future strategy.