Workday CEO Carl Eschenbach told CNBC on Thursday that artificial intelligence represents a “tailwind” rather than a headwind for the company. Eschenbach emphasized that Workday’s long-standing customer relationships and deep industry expertise position it to capitalize on the enterprise AI wave. He noted that over 70% of Workday’s R&D investment this year is dedicated to embedding generative AI capabilities directly into its core finance and human capital management modules, enabling customers to automate routine tasks, gain predictive insights and improve decision-making speed across the organization.

After peaking in early 2024, Workday’s share price has fallen by approximately 40%, reaching its lowest level since May 2023. This pullback has prompted several Wall Street analysts to revise their rating outlooks, with two firms upgrading the stock to ‘overweight’ and increasing their 12-month targets on expectations of resilient subscription revenue growth and expanding AI adoption. Despite a cautious consensus on near-term macro headwinds, most forecasts project a return to mid-teens percentage annual revenue growth by fiscal 2027, as Workday continues to penetrate new markets and upsell AI-powered functionality to its existing customer base.