Workday Inc (WDAY) Eyes AI Growth Amid CEO Change

Workday Inc (NASDAQ:WDAY) is among the best S&P 500 stocks with highest upside potential. On February 9, Workday announced that its CEO Carl Eschenbach had stepped down, and that the company’s co-founder, Aneel Bhusri, was replacing him immediately. Between 2009 and 2024, Bhusri served as either the sole CEO or co-CEO of Workday. Beginning in 2024, he transitioned to the executive chairman role until now, when he returns as the CEO again.

Although Eschenbach stepped down both as CEO and as a member of Workday’s board, the company said he would continue to support Bhusri as a strategic advisor.

According to Mark Hawkins, vice chair and lead independent director at Workday, no one is better than Bhusri to lead the company as it enters the next chapter shaped by AI.

“His vision, conviction, and deep connection to Workday’s culture will position the company to continue to lead in a changing landscape,” Hawkins said of Bhusri.

On February 9, Needham kept its Buy rating on Workday with a $300 price target, saying the leadership change was driven by the need to move faster in an AI‑focused market rather than sales issues. Workday confirmed its fourth‑quarter results will match earlier guidance, except for a restructuring charge that will lower GAAP operating income. Needham expects sales to be in line or muted, noting the timing of the transition at the start of the new fiscal year.

On February 9, Stifel cut its price target on Workday to $175 from $235 but kept a Hold rating. The change followed news that co-founder Aneel Bhusri returned as CEO, replacing Carl Eschenbach, as the stock trades near its 52‑week low.

Stifel said Eschenbach’s exit wasn’t surprising given the challenges since he became Co‑CEO in 2022. The firm expects Workday’s fiscal 2027 guidance could come in below current forecasts and flagged risks from weak operations, though it praised CFO Zane Rowe’s role in recent efficiency gains.

Workday Inc (NASDAQ:WDAY) is an American multinational provider of cloud-based software. It offers enterprises a platform to manage people, money, and agents. The company was founded in 2005 and is headquartered in Pleasanton, California.

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Disclosure: None. This article is originally published at Insider Monkey.