Workday CEO Transition: Carl Eschenbach Steps Down, Aneel Bhusri Returns as CEO

Workday, the enterprise cloud applications company, announced a significant leadership change on Monday, February 9, 2026, with CEO Carl Eschenbach stepping down from his role and co-founder Aneel Bhusri returning as CEO effective immediately. The announcement sent Workday's stock price tumbling, with shares dropping more than 8% in after-hours trading following the news.

Leadership Transition Details

Carl Eschenbach, who had served as Workday's CEO since 2022, is stepping down from the position but will remain with the company in an advisory capacity. Aneel Bhusri, who co-founded Workday with David Duffield in 2005 and served as co-CEO until 2022, will return to the CEO role immediately.

The transition marks a return to the company's founding leadership, as Bhusri had previously stepped down from the CEO position to focus on other aspects of the business and his role as chairman. The move comes as Workday continues to navigate a competitive enterprise software landscape and evolving customer needs.

Market Reaction and Stock Performance

Workday's stock (WDAY) experienced a significant decline following the announcement, dropping more than 8% in after-hours trading. The market reaction suggests investors may have concerns about the leadership change and its potential impact on the company's strategic direction and growth trajectory.

This stock movement reflects the market's sensitivity to executive changes at major enterprise software companies, particularly when a founder returns to the CEO role after a period away from day-to-day operations.

Context and Industry Implications

The leadership change at Workday comes amid broader shifts in the enterprise software industry, where companies are increasingly focused on AI integration, cloud optimization, and competitive positioning against both established players and emerging startups.

Workday has been working to expand its AI capabilities and enhance its platform to meet evolving customer demands for more intelligent, automated business processes. The return of Bhusri as CEO may signal a renewed focus on the company's core strengths and long-term vision.

Carl Eschenbach's Tenure

During his time as CEO, Eschenbach led Workday through a period of continued growth and expansion, focusing on enterprise customer acquisition and platform development. His departure marks the end of a three-year tenure at the helm of the company.

Eschenbach had previously served as co-CEO alongside Chano Fernandez before Fernandez's departure in 2022, which led to Eschenbach assuming the sole CEO role. His background includes extensive experience in enterprise software, having previously served as president and COO of VMware.

Aneel Bhusri's Return

Bhusri's return as CEO brings back a leader with deep institutional knowledge and a strong vision for Workday's future. As co-founder, he has been instrumental in shaping the company's culture, strategy, and product development since its inception.

The timing of Bhusri's return suggests the board may be seeking to leverage his experience and vision to address current market challenges and position Workday for future growth in an increasingly competitive landscape.

Company Outlook

Workday continues to serve a large customer base across various industries, providing human capital management, financial management, and planning solutions. The company's ability to adapt to changing market conditions and customer needs will be crucial as it moves forward under Bhusri's leadership.

The immediate market reaction indicates that investors will be closely watching how this leadership transition affects Workday's strategic direction, product development, and financial performance in the coming quarters.

Industry Context

This leadership change occurs as enterprise software companies face increasing pressure to demonstrate value in an environment where AI and automation are becoming central to business operations. Workday's competitors are also making significant investments in AI capabilities and platform enhancements.

The return of a founder CEO is not uncommon in the tech industry, with companies like Apple, Google, and others having successfully navigated similar transitions. However, the success of such moves often depends on the specific circumstances and the company's ability to execute on its strategic vision.

The coming months will be critical for Workday as Bhusri takes the helm and works to maintain the company's market position while addressing evolving customer needs and competitive pressures in the enterprise software market.