In the third quarter of fiscal 2026, activist hedge fund Third Point LLC, led by Dan Loeb, fully liquidated its remaining 300,000 shares of Workday, marking its second complete exit from the company this year after an initial sale in Q1. This move underscores shifting sentiment among large institutional investors and raises questions about confidence in Workday’s near-term growth trajectory despite recent operational progress.

Workday reported adjusted earnings per share of $2.32 for the third quarter, surpassing consensus estimates of $2.18, and generated revenue of $2.43 billion against expectations of $2.41 billion. The company ended the period with a subscription revenue backlog of $8.21 billion, up 17.6% year-over-year, aided by its recent acquisition of Paradox. Management highlighted robust adoption of AI-driven features and continued expansion across its HCM and financial management suites.

Despite the quarter’s outperformance, several sell-side analysts trimmed their price targets, citing modest organic revenue growth and guidance that leaves full-year margin targets just below consensus. RBC Capital maintained an Outperform rating but lowered its target from $340 to $320, while KeyBanc held an Overweight rating and cut its forecast from $285 to $260. Workday’s shares have declined approximately 21.4% over the past year, underperforming both broader cloud computing indexes and key peers such as Palantir Technologies (up 165.3%) and SAP SE (down 15.4%).