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Record Q1 fails to stop Adobe plunging as CEO departs
Shares in Adobe Inc fell almost 7% after it announced its Chief Executive Officer (CEO) would step down, despite posting record results for the first quarter of the 2026 financial year (Q1 FY26). The global software company, which created the PDF format, said Shantanu Narayen had decided to transition from his position as CEO after 18 years, once a successor was appointed, but would remain Chair of the Board. Lead Independent Director Frank Calderoni will Chair a special committee to direct the process to consider internal and external candidates. Adobe (NASDAQ: ADBE) shares closed $3.92 (1.43%) lower at US$269.78 on Thursday (Friday AEDT), capitalising the company at US$109.97 trillion (A$1.55 trillion), before diving $18.26 (6.77%) in after-hours trading to $251.52. The company also announced net income rose 4% to $1.889 billion in the three months ended 27 February, and diluted income per share increased 11% to $4.60 on revenue which climbed 12% to $6.4 billion. “Adobe delivered record Q1 results with AI-first ARR (annualised recurring revenue) more than tripling year over year (to $26.06 billion) and subscription revenue growing 13%,” Narayen said in a news release. “Our mission to empower everyone to create
Software
Google updates app store billing and fee structure
Google has announced major changes to its Android app store billing and fee structure. The Alphabet Inc unit said it would lower the commission it takes from developers and expand payment options. Google’s President of Android Ecosystem, Sameer Samat, said the company was announcing substantial updates to its business model with more billing options, a program for registered app stores, lower fees and new programs for developers. “This is a significant evolution, and we plan to share additional details in the coming months,” Samat wrote in a blog. Mobile app developers will be able to use their own billing systems alongside Google Play's systems and direct users to their own websites for purchases. It will also be easier for users to download and install third-party app stores on their Android devices with the changes starting outside the United States first under a staggered schedule. The move resolves its long-running dispute with Epic Games and paves the way for the return of the free online video game Fortnite to the Play Store. In a 2020 anti-trust lawsuit, Epic accused Google of illegally monopolising how users ⁠access apps and make in-app purchases on Android devices before the two companies reached a s
Software
Render raises funding at US$1.5bn valuation
Cloud startup Render has raised US$100 million at a $1.5 billion valuation. The company is benefitting from the people asking AI models to write software for them, and seeking advice on where to run new programs in a cloud computing world dominated by Amazon, OpenAI, Microsoft, Alphabet and Nvidia. Render’s co-founder and CEO, Anurag Goel, told CNBC that the company’s revenue growth is well over 100%, and more than 4.5 million developers use its tools. Goel also said that the company has benefited from a generational shift in how developers choose cloud developers. “Hyperscalers are no longer the default for teams that want to move fast. AI-assisted coding means developers can build faster than ever, and they need a cloud that can keep up. That's what Render delivers,” Goel said in a media release. Render was founded in 2018 and is San Francisco-based with around 100 employees. Investors include 01A, Addition, Bessemer Venture Partners, General Catalyst and Georgian Partners. With the new capital, Render will hire additional technical staff members to build features. The cloud startup runs its software on Amazon Web Services and Google Cloud Platform but is testing the use of its own servers. Expanding the
Software
Shopify stocks drop despite strong guidance
Shopify's stock fell despite beating the top line and giving strong guidance to start the year in its latest earnings. Revenue for the final quarter of 2025 grew 31% to US$3.67 million, beating expectations of $3.59 million. The e-commerce company also reported earnings of 48 cents per share. This was below analysts' expectations of 51 cents per share. Shopify also announced that it expects first-quarter revenue to expand at a “low-thirties percentage range” year-over-year, which is higher than the 25.1% growth forecast by analysts, according to FactSet. “2025 was Shopify at full throttle - driving compounding growth, while laying the rails for the new era of AI commerce,” Harley Finkelstein, President of Shopify, said. “2026 will be the year of the builders, and we’ll be powering them - from first sale to full scale.” The company’s board of directors also approved $2 billion in share buybacks. Shares of software companies have sold off heavily in recent weeks as investors grew increasingly concerned about the potential threat of artificial intelligence tools. The company has adopted AI technology and was an early partner of OpenAI when it launched its Instant Checkout feature. It also helped Google deve
Software
WorkDay CEO steps down, replaced by company co-founder
CEO of Workday, Carl Eschenbach, has stepped down from the top job, after just three years in the role. Co-founder Aneel Bhusri had stepped into the role effective immediately, his second tenure as CEO, having preceded Eschenbach prior to 2024. Workday, which offers financial software and management, student information services for universities and HR services, announced at the start of last year it would be cutting jobs equal to 8.5% of staff, as part of a restructuring plan pushed forward by AI investment. Now, this week, it has announced further cuts again, around 2% of staff, with Eschenbach stepping down shortly after, saying it had “been a privilege to serve as CEO". “I’m deeply grateful to Carl for leading Workday through an important chapter — scaling the company, building on our foundation, and positioning us well for what’s ahead,” said Bhusri. “We’re now entering one of the most pivotal moments in our history. AI…will define the next generation of market leaders.

Software
Databricks announces US$5 billion in funding
Data analytics company Databricks announced that it raised US$5 billion (A$7.09 billion) in funding and $2 billion in new debt capacity at a $134 billion valuation. The private company also revealed that its revenue run-rate rose 65%, exceeding $5.4 billion for the January quarter and delivering free cash flow over the past year. Databricks also said AI products now generate $1.4 billion in revenue run-rate. In June, it also forecast 50% growth. “With this new capital, we’ll double down on Lakebase so developers can create operational databases built for AI agents,” co-founder and CEO Ali Ghodsi said. “At the same time, we’re investing in Genie to let every employee chat with their data, driving accurate and actionable insights.” Ghodsi also told CNBC that it would consider going public “when the time is right”. This comes as Databricks surpasses its rival Snowflake, which reported $1.21 billion in revenue for the October quarter. Snowflake’s market cap is $60.21 billion. Snowflake (NYSE: SNOW) stocks have also risen 4.46% to $175.95. Other fast-growing AI labs like Anthropic and OpenAI are also considering 2026 initial public offerings, according to people familiar with the matter. Elon Musk also said t
Software
Monday.com tanks after lower than expected outlook
Monday.com's stock shed around 20.8% after the company’s revenue outlook came in below estimates. The estimated revenue is between US$388 million and $340 million in the current quarter, below the $343 million expected by analysts. For the full year, the company expects revenues between $1.452 and $1.462, while estimates expect $1.48 million. This comes as software stocks have sold off in recent weeks amid rising fears of AI disruption and worries that new agentic tools could replace them. So far this year, the iShares Expanded Tech-Software Sector ETF (IGV) has plummeted 22%, and Monday.com has already lost about half its value. The company has also shed over three-quarters of its market value from its November 2021 high. Management defended the company’s market position and highlighted new AI capabilities being implemented, such as agents and a vibe feature, to improve conversion and engagement. “We don’t see any impact currently from any AI company, and we’re shifting our product, regardless, to be more AI native,” co-CEO and co-founder Eran Zinman said during an earnings call. Zinman also said the company has pivoted messaging around ads and on its homepage to become more AI-focused. Despite this, the c
Software
Adobe results beat estimates for Q4 on record revenue
Adobe has come out ahead of estimates for its Q4 earnings, released in a report today. The tech giant Adobe achieved record revenue of US$6.19 billion, demonstrating 10% year-over-year growth, and ahead of the consensus estimate of $6.11 billion. Earnings per share were ahead of analysts' forecasts too, landing at $5.50 versus the estimate of $5.40. Cash flows from operations were also at a record level of US$3.16 billion. Adobe’s stock price closed at $343.13, down 0.4%, but recovered those losses in after-hours trade. The company credited a “strong global demand for our AI solutions” for the successful quarter. “Adobe’s record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools,” said Shantanu Narayen, chair and CEO, in a press release. “By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026.”
Software
Shopify experiences hours-long outage on Cyber Monday
E-commerce company Shopify was hit with an hours-long outage on Cyber Monday, leaving businesses unable to manage transactions on one of the biggest shopping days of the year. On its status page, Shopify said there have been some fixes to the issues, but that they are still monitoring the recovery of the issue. “We are still continuing to monitor the recovery of the issue,” Shopify’s most recent update said. “The Help Center is experiencing longer than normal wait times for Support while we update merchants regarding the status of the issue.” According to the Downdetector website, thousands of users reported issues with Shopify at around 1:15 pm EST after around 4,000 cases were reported by users at its peak at 11:00 am EST. Shopify sells software for merchants running online businesses as well as other services including advertising and payment processing. The e-commerce company also claims that it handles more than 10% of all e-commerce transactions in the U.S.. The outage coincided with one of the largest online sales days in the U.S., Cyber Monday. According to Adobe analytics, U.S. shoppers were expected to spend US$14.2 billion online on Cyber Monday, up 6.3% from last year, and spent US$11.7 billion