New York, Feb 10, 2026, 14:09 EST — Regular session
- Workday shares down about 1% in afternoon trade, extending Monday’s drop after a CEO change
- Co-founder Aneel Bhusri is back in the top job, replacing Carl Eschenbach
- Investors are watching for details on margins, restructuring costs and demand trends at the next results
Workday, Inc. shares fell again on Tuesday, down about 1.2% at $152.71 in afternoon trading after swinging between $152.66 and $158.51.
The fresh dip follows Workday’s announcement on Monday that co-founder Aneel Bhusri would return as CEO, replacing Carl Eschenbach, as the human resources software maker leans harder into artificial intelligence and tries to firm up demand. Bhusri called AI “a bigger transformation than SaaS,” referring to software-as-a-service, the subscription model that helped power the last decade of cloud growth. 1
The timing matters because it lands just ahead of the company’s next quarterly report, with investors already focused on how much cost-cutting is needed to protect profitability. In a Feb. 4 filing, Workday said it expected fourth-quarter and full-year results to line up with its prior forecast, except for its GAAP operating margin — GAAP is standard accounting rules — after reorganization actions that include cutting about 2% of staff. It estimated roughly $135 million in charges, much of it non-cash, tied to severance and office-space and asset impairments. 2
Workday has framed the transition as a handoff into its next phase. In its press release, the company said Eschenbach stepped down as CEO and as a board member and would stay on as a strategic adviser, while Bhusri returns to lead the company “as” it starts fiscal 2027; board lead independent director Mark Hawkins said “there is no one better than Aneel” for what he called a “defining moment shaped by AI.” 3
Some on Wall Street read the move more darkly. Mizuho’s Jordan Klein called the CEO change “really bad,” arguing Eschenbach had been strong on execution and customer relationships at a moment when Workday needs credibility as it pushes deeper into AI. 4
An SEC filing laid out what the switch means inside the company. It showed the board appointed Bhusri CEO effective Feb. 6 and that he will remain chair; it also detailed his pay package and equity grants, and said Eschenbach’s separation agreement includes a cash payment of about $3.6 million and accelerated vesting of certain stock awards. 5
Workday’s pitch is that AI features can deepen its hold with customers, even as enterprise buyers scrutinize tech budgets. The company sells cloud software for HR and finance, competing in parts of the market with larger suite vendors such as Oracle and SAP.
But the risk is straightforward: a CEO reset does not, by itself, fix demand. If customers delay upgrades or Workday has to spend more to keep pace in AI, investors could press the stock again — especially with margins already under a spotlight because of restructuring and impairment charges.
For now, traders are likely to keep trading the narrative into the next catalyst: Workday’s Feb. 24 results and conference call, where investors will listen for any change in outlook and for early signals on fiscal 2027 growth and profitability under Bhusri.
