Workday Inc.'s stock fell 6% on Monday following the announcement that co-founder Aneel Bhusri is returning to the chief executive officer role, replacing Carl Eschenbach, who is stepping down after three years at the company's helm.
The change in leadership is effective immediately. According to the company statement, Bhusri will assume the CEO position as Workday begins its fiscal year 2027. Eschenbach will remain involved with the firm as a strategic advisor to the CEO.
Workday described the leadership move as occurring at what it called "a defining moment shaped by AI," and said Bhusri’s "vision, conviction, and deep connection to Workday’s culture" position him to guide the company in a shifting competitive landscape focused on artificial intelligence.
In his statement, Bhusri said: "We’re now entering one of the most pivotal moments in our history. AI is a bigger transformation than SaaS - and it will define the next generation of market leaders."
Eschenbach reflected on his tenure, noting accomplishments during his three years leading the company. "I’m proud of all we achieved - instilling greater operational discipline, expanding globally, broadening our industry focus, and laying meaningful groundwork in AI," he said. The company said Eschenbach will continue to support Bhusri and the business in an advisory capacity.
Workday also reaffirmed its fiscal 2026 fourth-quarter and full-year outlook. The company stated it expects financial results to be in-line with the guidance provided during its third-quarter earnings call in November, with the exception of its GAAP operating margin as disclosed in a February 4 SEC filing.
Investors will have fresh financial data to assess the company’s near-term trajectory: Workday is scheduled to report its fiscal 2026 fourth-quarter and full-year results after market close on Tuesday, February 24, 2026.
Summary
Aneel Bhusri is returning as Workday's CEO effective immediately, succeeding Carl Eschenbach, who steps down after a three-year tenure and will stay on as a strategic advisor. The company framed the transition around an AI-driven opportunity as it enters fiscal 2027. Workday reaffirmed its fiscal 2026 fourth-quarter and full-year guidance, aside from an exception to GAAP operating margin disclosed in a February 4 SEC filing, and will report results after the close on February 24, 2026.
- Key points:
- Workday's stock fell 6% on Monday after leadership change announced.
- Aneel Bhusri returns as CEO effective immediately as the company begins fiscal 2027; Carl Eschenbach will serve as strategic advisor.
- Workday emphasized AI as a central strategic focus and reaffirmed fiscal 2026 Q4 and full-year guidance, with a noted exception to GAAP operating margin disclosed in a February 4 SEC filing.
- Sectors impacted:
- Enterprise software and cloud services.
- AI infrastructure and enterprise IT spending.
- Public equity markets and investor sentiment for software stocks.
- Risks and uncertainties
- Market reaction to the sudden leadership change, reflected by the 6% stock decline, could increase volatility in Workday shares - relevant to investors and equity market participants.
- Uncertainty around execution of an AI-centered strategy under returning leadership; the company has framed AI as decisive but operational outcomes are pending - relevant to enterprise software customers and competitors.
- The company reaffirmed guidance but noted an exception to its GAAP operating margin as disclosed in a February 4 SEC filing, introducing a specific financial caveat ahead of the February 24, 2026 results release - relevant to financial analysts and shareholders.