Pleasanton, California — Workday co-founder Aneel Bhusri has returned as chief executive officer effective immediately, replacing Carl Eschenbach who stepped down from both the CEO position and board seat. The leadership transition comes as the enterprise software giant navigates a challenging period marked by significant stock declines and intensifying competition in the rapidly evolving artificial intelligence sector.
Key Facts
• Aneel Bhusri, who led Workday since its founding in 2009, returns as permanent CEO on February 9, 2026, as Carl Eschenbach departs after three years in the role
• Workday stock dropped more than 8% on the announcement, falling to $149.45 by midday trading, with shares down 17% year-to-date as of February 6, 2026
• The company reaffirmed fiscal 2026 guidance including 15.5% adjusted operating margin and $2.355 billion in subscription revenue, with full results expected February 24, 2026
Eschenbach led the company through significant global expansion and operational restructuring over the past three years. His tenure included multiple artificial intelligence acquisitions, most notably Workday's $1.1 billion purchase of Sana Labs AB in September 2025.
The market reacted negatively to the sudden leadership change, with shares tumbling as investors questioned the company's strategic direction. Wall Street analysts maintained cautious optimism, however, with a consensus price target of $269.68 suggesting substantial upside potential from current trading levels.
Bhusri emphasized that AI represents the company's defining moment, positioning this transition as strategic rather than reactive. His return signals that Workday believes founder-level vision is essential for navigating the artificial intelligence transformation of enterprise software.
The leadership shift occurs amid broader pressure from activist investor Elliott Management, which disclosed a $2 billion stake in December 2025. Workday subsequently announced a $5 billion share buyback program and enhanced profitability targets in response.
Eschenbach will remain involved as a strategic advisor to Bhusri, helping ensure continuity during this pivotal transition. Industry observers view the move as positioning Workday to compete more aggressively as artificial intelligence moves from experimental features to platform-defining capabilities.
Workday maintained its fiscal outlook despite the leadership change, signaling confidence in the company's underlying financial performance. The enterprise software company expects to report full-year results after market hours on February 24, 2026.
Bhusri stated in the company's announcement, emphasizing the strategic importance of artificial intelligence to Workday's future.
The leadership transition sets the stage for Workday's next chapter under Bhusri's direction, working alongside company presidents Gerrit Kazmaier and Rob Enslin. Investors will closely monitor the company's quarterly earnings report and management commentary for clarity on artificial intelligence strategy and execution plans.
Do You Know?
Workday serves more than 11,000 organizations globally, including over 65% of Fortune 500 companies, making it one of the most influential enterprise software platforms in the world. The company's unification of HR and finance functions on a single AI-enabled platform has established it as a leader in enterprise resource planning.
Key Terms
• Adjusted Operating Margin: A profitability metric that excludes one-time expenses and focuses on core business performance
• Enterprise Resource Planning (ERP): Software systems that integrate and manage business processes across finance, human resources, and operations
• Artificial Intelligence Transformation: The fundamental shift in how business applications leverage AI to automate complex tasks and improve decision-making
• SaaS (Software-as-a-Service): Cloud-based software delivered through internet subscription models rather than installed on individual computers
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