New York, Feb 10, 2026, 14:09 EST — Regular session
- Workday shares slipped roughly 1% in afternoon trading, building on Monday’s decline that followed news of a CEO shakeup.
- Aneel Bhusri, one of the company’s co-founders, has returned as CEO, stepping in for Carl Eschenbach.
- Investors want a closer look at margins, restructuring costs, and demand trends when the next results come out.
Shares of Workday, Inc. slipped for another session Tuesday, off roughly 1.2% at $152.71 by the afternoon, with the stock moving in a range from $152.66 to $158.51.
Workday shares slid after the company said Monday that Aneel Bhusri, its co-founder, will step back in as CEO, taking over for Carl Eschenbach. The HR software provider is doubling down on AI in hopes of reigniting demand. Bhusri described AI as “a bigger transformation than SaaS,” the subscription-based model that fueled cloud software’s last boom. 1
This comes right before the company’s next quarterly report, turning up pressure on management to show how much more belt-tightening is needed to keep margins up. In a Feb. 4 filing, Workday reiterated it expects both fourth-quarter and full-year numbers to hit previous targets, aside from its GAAP operating margin — that’s standard accounting — which will take a hit after layoffs and other restructuring moves that cut about 2% of its workforce. The company put the total charges at around $135 million, mostly non-cash, related to severance, office space and asset write-downs. 2
Workday is calling the move a handoff into its next chapter. According to its press release, Eschenbach has exited both his CEO post and board seat, but he’ll stay on in a strategic adviser role. Bhusri, meanwhile, returns to the top job “as” Workday enters fiscal 2027. Board lead independent director Mark Hawkins put it plainly: “there is no one better than Aneel” for what he called a “defining moment shaped by AI.” 3
Not everyone on Wall Street saw the shift as positive. Jordan Klein at Mizuho labeled the CEO swap “really bad,” saying Eschenbach delivered on execution and built solid customer ties—crucial, he argued, as Workday looks for credibility while ramping up its AI push. 4
The SEC filing spells out the changes: Bhusri takes over as CEO on Feb. 6 and stays on as chair, according to the board’s decision. It also breaks down his compensation and equity grants. Eschenbach, meanwhile, exits with a separation agreement that gives him roughly $3.6 million in cash and speeds up the vesting of some stock awards. 5
Workday’s argument: Its AI tools tighten its grip on customers, a selling point as enterprise budgets get more scrutiny. The company offers cloud-based HR and finance software, and finds itself up against bigger suite vendors—think Oracle and SAP—in several market segments.
The risk is clear enough: swapping out the CEO alone doesn’t solve the demand issue. If customers hold off on upgrades, or if Workday ends up spending extra just to keep up in AI, the stock could face renewed pressure—margins are already in focus after restructuring and impairment charges.
At this point, traders seem set to lean into the narrative until the next big event: Workday’s Feb. 24 report and call. Investors will be tuned in for any tweaks to the outlook, plus hints about fiscal 2027 growth and profitability under Bhusri.
