Workday (WDAY) Stock Slides as Cofounder Aneel Bhusri Returns as CEO

Workday, Inc. (NASDAQ: WDAY) shares tumbled on February 9, 2026, following the announcement of a major leadership transition. The enterprise software company revealed that cofounder and current executive chairman Aneel Bhusri will return as chief executive officer, while Carl Eschenbach is stepping down from both the CEO position and his board seat. The leadership change comes as Workday positions itself for what it describes as a pivotal moment in the AI era, with the transition effective immediately as the company begins fiscal year 2027.

Leadership Shakeup at a Critical Moment

The CEO transition represents a significant shift for the Pleasanton, California-based software maker. Aneel Bhusri, who originally left the CEO role on February 1, 2024, is returning to lead the company through what leadership describes as “one of the most pivotal moments” in Workday’s history.

According to the company’s announcement, AI represents a transformation even larger than the shift to software-as-a-service (SaaS), and Bhusri’s vision and deep connection to Workday’s culture position him to navigate this evolution.

Carl Eschenbach, who served as CEO for approximately three years, will continue supporting the company as a strategic advisor to the CEO. During his tenure, Eschenbach led Workday through a period characterized by global growth, expanded industry focus, and strengthened operational discipline.

Mark Hawkins, Workday’s vice chair and lead independent director, acknowledged Eschenbach’s contributions in maturing the company into a more global and disciplined organization while expressing confidence that Bhusri is the right leader for the company’s next chapter.

Workday confirmed that its fiscal 2026 fourth quarter and full-year financial results are expected to be in line with previous guidance provided during the third quarter earnings call on November 25, 2025. The company is scheduled to report these results on February 24, 2026.

This financial stability amid the leadership change may provide some reassurance to investors, though the market reaction reflected uncertainty about the transition.

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WDAY Shares Slide on Leadership Uncertainty

Workday stock experienced significant selling pressure following the announcement, falling more than 8% in early trading on February 9, 2026. The stock opened at $149.67, down sharply from the previous close of $162.92, and traded as low as $147.35 during the session.

As of 10:10 AM EST, shares were priced at $149.45, representing a decline of $13.47 or 8.27% from the prior close. The dramatic intraday drop pushed the stock to its 52-week low of $147.35.

The decline extends Workday’s challenging performance trajectory. The stock has retreated 17% year-to-date as of the market close on February 6, 2026, and has fallen approximately 30% over the year-to-date period when including the latest decline.

Over the past year, Workday shares have plummeted 44.48%, significantly underperforming the S&P 500’s 14.96% gain during the same period. The stock’s 52-week range spans from $147.35 to $281.00, highlighting the severity of the downturn.

Despite the stock’s struggles, Wall Street analysts maintain cautious optimism about Workday’s prospects. The consensus price target stands at $269.68, suggesting substantial upside from current levels, with targets ranging from a low of $200 to a high of $326. The company maintains a market capitalization of approximately $40.3 billion and holds a relatively low Composite Rating of 44 out of 99 according to IBD Stock Checkup, indicating weak technical and fundamental performance compared to other growth stocks.

Workday provides enterprise cloud applications for financial management and human capital management, with approximately 70% of revenue derived from HR management products serving more than 11,000 organizations globally.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.