Workday shares are taking a beating after the enterprise software giant delivered revenue guidance that fell short of Wall Street expectations. The stock slide comes just weeks after the company announced CEO Carl Eschenbach is stepping down, with co-founder Aneel Bhusri returning to take the helm. The timing couldn't be worse—investors are now questioning whether the leadership transition signals deeper troubles at one of cloud computing's marquee names.
Workday just handed investors a double dose of bad news. The company's Q4 2026 earnings report revealed revenue guidance that missed analyst expectations, sending shares tumbling in after-hours trading. But the timing is what's really got Wall Street nervous—this comes barely a month after the enterprise software company announced a major leadership shakeup.
According to CNBC's report, CEO Carl Eschenbach is stepping down, and co-founder Aneel Bhusri is returning to the top job. The CEO transition raised eyebrows when it was announced, and now the weak revenue outlook is fueling speculation about what's really happening inside one of enterprise SaaS's biggest players.
The market reaction was swift and brutal. Investors who've watched Workday navigate the shift to cloud-based human resources and financial management software for years are now questioning whether the company's growth story is losing steam. The weak guidance suggests the company may be facing headwinds in closing deals or seeing longer sales cycles—classic warning signs in the enterprise software world.
Bhusri isn't new to the CEO chair—he co-founded Workday back in 2005 and helped build it into a cloud computing powerhouse worth billions. But his return after Eschenbach's relatively brief tenure raises questions. Eschenbach, who came from Google Cloud and brought enterprise credibility, seemed like the right leader to take Workday into its next phase. His departure, combined with softening revenue projections, paints a more complicated picture.
The enterprise software market has gotten increasingly competitive. faces pressure from legacy players like and who've modernized their offerings, while also competing with newer cloud-native players. The company's bread and butter—HR and finance software—is a crowded space where customers are getting more selective about spending.
