Workday Inc (WDAY) Eyes AI Growth Amid CEO Change

Core Insights - Workday Inc is recognized as one of the S&P 500 stocks with significant upside potential following a leadership change [1] - Aneel Bhusri has returned as CEO, replacing Carl Eschenbach, who stepped down on February 9 [1][2] - The leadership transition is aimed at accelerating the company's focus on AI growth [2][4] Leadership Change - Carl Eschenbach has resigned as CEO and board member but will remain as a strategic advisor to Bhusri [2] - Mark Hawkins, vice chair and lead independent director, emphasized Bhusri's vision and connection to Workday's culture as key to navigating the evolving landscape [3] Market Reactions - Needham maintained a Buy rating on Workday with a price target of $300, indicating the leadership change is not due to sales issues but rather a need for agility in an AI-focused market [4] - Stifel reduced its price target from $235 to $175 while keeping a Hold rating, citing the stock's proximity to its 52-week low [5] - Stifel also noted that Eschenbach's exit was anticipated due to challenges faced since he became Co-CEO in 2022 [6] Financial Outlook - Workday confirmed that its fourth-quarter results will align with previous guidance, except for a restructuring charge affecting GAAP operating income [4] - There are expectations that fiscal 2027 guidance may fall below current forecasts, with concerns about operational weaknesses [6]