Workday's stock has been in a slump. Its CEO is leaning into agentic AI.
Business Insider
February 25, 2026
AI-Generated Deep Dive Summary
Workday's stock has faced a significant decline recently, with shares falling nearly 10% in after-hours trading following weaker-than-expected subscription growth projections. The company's newly reinstated CEO, Anil Bhusri, emphasized the potential of agentic AI to transform business processes and reduce costs, while acknowledging the challenges of displaced labor. Despite broader concerns about AI disrupting the software industry, Workday is positioning itself as a leader in integrating AI into HR and finance solutions. However, Bhusri noted that meaningful revenue from these AI initiatives is not expected until later in the year, leading to cautious guidance that disappointed investors.
The recent sell-off in software stocks reflects investor anxiety over AI's disruptive potential, with fears that the technology could render certain jobs obsolete. Workday, like other companies, has been impacted by this sentiment, contributing to its stock decline. On their earnings call, Workday refrained from addressing these concerns directly and instead highlighted its strategic focus on agentic AI products to expand its market presence in key sectors such as HR and finance.
Workday's CEO also revealed that the company is realigning resources through layoffs, with approximately 400 employees being let go earlier this month. Bhusri, who has previously served as CEO three times, reiterated his cautious approach to setting financial targets, aiming to consistently outperform expectations. While optimistic about the long-term growth opportunities AI presents, Workday is navigating a period of transition and adaptation in response to market shifts and technological advancements.
This situation matters to readers interested in business because it highlights the broader implications of AI adoption across industries. Companies are increasingly turning to AI to enhance efficiency and competitiveness, but this shift also raises questions about workforce displacement and ethical considerations. Workday's strategic focus on agentic AI underscores the potential for technology-driven growth, even as it grapples with immediate financial challenges and market volatility.
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Originally published on Business Insider on 2/25/2026