Investing.com -- Adobe Inc. has narrowed its CEO search to two internal candidates while also exploring external options through a hired search firm, according to a Bloomberg report Wednesday.

David Wadhwani and Anil Chakravarthy lead Adobe's two main business units and are said to be primary internal candidates for the position. The company has also engaged Heidrick & Struggles International Inc. to identify external candidates with experience in developing or monetizing artificial intelligence products at scale.

Microsoft Corp. Executive Vice President Charles Lamanna reportedly discussed the role with Adobe but decided not to continue with the process. Lamanna oversees product development at Microsoft, including AI integration into business applications.

Wadhwani heads the business unit containing Adobe's flagship creative tools, including Photoshop and Acrobat. This division generated approximately three-fourths of the company's $17.7 billion revenue last year. He previously left Adobe in 2015 to lead AppDynamics, which Cisco Systems Inc. acquired for $3.7 billion in 2017. He returned to Adobe in 2021 as executive vice president after working as a venture partner at Greylock.

Chakravarthy leads Adobe's marketing and analytics software business, which produced $5.9 billion in sales during the 2025 fiscal year. He joined Adobe in 2020 after serving as CEO of Informatica Inc.

Shantanu Narayen announced in March that he would step down after nearly two decades as CEO once a successor is found. He will continue as chairman of the board.

Adobe's stock has declined 59% from its early 2024 peak. The company is dealing with dropping investor confidence amid the growing competition from AI-native tools even as it works to integrate artificial intelligence throughout its platform.