Adobe (ADBE) Q1-26 earnings: The 18-year CEO exit & the death of stock photos

Adobe's otherwise solid Q1 2026 results were totally eclipsed by a sudden leadership exit and the expensive, hidden costs of its aggressive AI transition.In this episode:- CEO Shantanu Narayen steps down after an 18-year run.- Why 80 million freemium users are actively suppressing ARR.- Firefly AI cannibalizes Adobe's $450M traditional stock photo business.- A sneaky $62M legal charge tied to strict subscription cancellations.- How collapsed segment reporting obscures legacy software decay.Adobe is undergoing a textbook tech "phase shift," aggressively giving away AI tools to build a massive user moat against new upstarts. But with the visionary architect behind its SaaS dominance stepping away, Wall Street is growing impatient with the strategy's near-term drag on recurring revenue—sending the stock tumbling nearly 8% after hours.Adobe Inc. (ADBE) | Q1 FY2026AI-assisted production. Feedback/ticker requests: https://x.com/EarnUnscripted.