Workday Announces CEO Transition as Co-Founder Aneel Bhusri Returns to Lead the Company's Next Chapter
Rhea-AI Summary
Workday (NASDAQ: WDAY) announced that co-founder Aneel Bhusri is returning as chief executive officer effective immediately as the company begins its fiscal 2027 year. Carl Eschenbach is stepping down as CEO and board member and will serve as strategic advisor to the CEO. The company reaffirmed fiscal 2026 Q4 and full-year outlooks are in-line with prior guidance, except for the GAAP operating margin item disclosed in its Feb 4 Form 8-K. Workday plans to report fiscal 2026 fourth-quarter and full-year results after market close on Feb 24, 2026.
Positive
- Co-founder Aneel Bhusri returns as CEO effective immediately
- Leadership continuity via presidents Gerrit Kazmaier and Rob Enslin supporting Bhusri
- Company reaffirmed fiscal 2026 Q4 and full-year results are in-line with guidance
Negative
- GAAP operating margin exception disclosed in the Feb 4 Form 8-K
Market Reaction
Following this news, WDAY has declined 6.06%, reflecting a notable negative market reaction. Our momentum scanner has triggered 14 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $153.05. This price movement has removed approximately $2.60B from the company's valuation. Trading volume is above average at 1.6x the average, suggesting increased trading activity.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
WDAY gained 2.62% while key software peers also rose: ROP +2.53%, DDOG +2.47%, SNOW +3.78%, with smaller moves for ADSK and PAYX. Momentum scanner flagged only MSTR moving down, supporting a company-specific headline focus.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Product feature launch | Positive | -7.0% | Introduced Military Skills Mapper tool to improve veteran hiring via Workday Recruiting. |
| Feb 03 | Earnings date set | Neutral | -7.0% | Announced Feb 24, 2026 date for fiscal 2026 Q4 and full-year results. |
| Jan 20 | Expansion investment | Positive | -2.1% | Committed CAD $1B over five years to expand Canadian presence and AI capability. |
| Jan 15 | Brand collaboration | Positive | -0.7% | Life Time and EVEREVE launched lifestyle apparel capsule collection available Jan 22. |
| Jan 14 | AI research report | Neutral | -2.8% | Released AI workplace study showing time savings but high rework and training gaps. |
Recent WDAY headlines, including product launches, investment plans, and AI research, were followed by negative 24h moves despite generally constructive news tone.
Over the past few weeks, WDAY has reported multiple developments: an AI-focused research study on Jan 14, 2026, a CAD $1 billion Canada investment on Jan 20, 2026, and new recruiting functionality plus an earnings date update on Feb 3, 2026. Each coincided with negative 24-hour price reactions. Today’s CEO transition and outlook reaffirmation fit into this period of active corporate updates ahead of fiscal 2026 results on Feb 24, 2026.
Market Pulse Summary
The stock is down -6.1% following this news. A negative reaction despite the founder’s return as CEO and reaffirmed fiscal 2026 guidance would fit a recent pattern where WDAY traded lower after corporate updates and AI-related announcements. Past events in January and early February were followed by negative 24-hour moves. In this context, concerns about leadership transition risk, previously disclosed restructuring charges, or broader sentiment toward application software names could have amplified downside pressure.
Key Terms
form 8-k regulatory
gaap operating margin financial
AI-generated analysis. Not financial advice.
Carl Eschenbach Steps Down After Leading Company Through a Period of Global Expansion and Operational Scale
Company Reaffirms Fiscal 2026 Fourth Quarter and Full-Year Outlook
"Aneel and Dave Duffield founded Workday with a belief that work could be done differently, and they built one of the most innovative companies in enterprise software," said Mark Hawkins, Workday vice chair and lead independent director. "As we enter a defining moment shaped by AI, there is no one better than Aneel to lead this next chapter. His vision, conviction, and deep connection to Workday's culture will position the company to continue to lead in a changing landscape."
"Carl stepped in at a pivotal time and helped Workday mature into a more global, disciplined organization," Hawkins continued. "He strengthened the company's operational foundation while leading with integrity and heart. We're grateful for his leadership and the impact he's had on the company. And we're pleased that he will continue to support Aneel and the company as a strategic advisor."
"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 is a bigger transformation than SaaS — and it will define the next generation of market leaders. I'm energized to return as CEO, working alongside our presidents Gerrit Kazmaier and Rob Enslin, and I'm excited about the opportunity in front of us."
"It's been a privilege to serve as CEO over the past three years and I'm proud of all we achieved — instilling greater operational discipline, expanding globally, broadening our industry focus, and laying meaningful groundwork in AI," Eschenbach noted. "I could not be more grateful to Aneel and to our board for the trust they placed in me to lead this special company, and I look forward to supporting Aneel and Workday in this next chapter."
This change is effective immediately, with Bhusri stepping in as the company kicks off its fiscal year 2027.
Fiscal 2026 Fourth Quarter and Full-Year Outlook
As disclosed on its Form 8-K filed with the Securities and Exchange Commission on February 4, 2026, Workday expects its fiscal 2026 fourth quarter and full-year financial results to be in-line with its guidance as provided on its fiscal 2026 third quarter earnings call on November 25, 2025, with the exception of its GAAP operating margin as disclosed in the February 4 Form 8-K.
These expectations are based on preliminary unaudited financial and other information, and subject to normal quarterly closing processes and accounting review. As previously announced, Workday is scheduled to report its fiscal 2026 fourth quarter and full-year financial results after market on Tuesday, February 24, 2026.
About Workday
Workday is the enterprise AI platform for managing people, money, and agents. Workday unifies HR and finance on one intelligent platform with AI at the core to empower people at every level with the clarity, confidence, and insights they need to adapt quickly, make better decisions, and deliver outcomes that matter. Workday is used by more than 11,000 organizations around the world and across industries – from medium-sized businesses to more than
Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Workday's leadership transition, plans, beliefs, and expectations, and fiscal 2026 fourth quarter and full year financial results. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to, risks described in our filings with the Securities and Exchange Commission ("SEC"), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.
Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday's discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.
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SOURCE Workday Inc.
FAQ
Why did Workday (WDAY) replace its CEO on February 9, 2026?
Will Carl Eschenbach remain involved with Workday (WDAY) after stepping down?
Does the CEO change affect Workday's fiscal 2026 guidance (WDAY)?
When will Workday (WDAY) report its fiscal 2026 fourth-quarter and full-year results?
What is the immediate leadership structure at Workday (WDAY) after the change?
