Workday shares dropped 10% after reporting light quarterly guidance. Q4 revenue was $2.53 billion, up 14.5% YoY, with net income at $145 million. FY 2026 first quarter subscription revenue forecasted at $2.335 billion. FY 2027 sees 12-13% growth. AI concerns have led to a 39% decline in Workday shares for 2026.

Workday announced CEO Carl Eschenbach’s departure and replacement by co-founder Aneel Bhusri. The company has integrated generative AI features and annualized revenue from AI exceeds $400 million. New AI agent for modifying work shifts and acquisition of Pipedream, a startup connecting AI agents to external services, were also announced.

CEO Bhusri stated that AI will not replace HR and ERP systems. Some deals with new customers are taking longer to close, particularly in federal government and health care sectors. CFO Zane Rowe emphasized growth over operating margin targets. Investors are wary of AI’s impact on software companies.

Read more at CNBC: Workday (WDAY) Q4 earnings report 2026