In the third quarter of fiscal 2026, Dan Loeb’s Third Point LLC completed its second full exit from Workday, liquidating the remaining 300,000 shares it held. This follows an earlier sale in Q1 2025, marking a complete divestment of the hedge fund’s position in the enterprise software company for the second time this year. The move underscores growing investor skepticism around Workday’s ability to sustain high growth rates amid increasing competition in the cloud applications market.

For the quarter ending November 2025, Workday reported adjusted earnings per share of 2.32 and revenue of 2.43 billion, each beating consensus estimates by 6% and 0.8%, respectively. Subscription revenue backlog climbed 17.6% year-over-year to 8.21 billion, driven in part by the acquisition of Paradox. Management highlighted expanding AI capabilities within the platform and ongoing innovation across finance and HR modules, but guided fourth-quarter margins in line with prior targets, signaling modest leverage on incremental revenue.

Several Wall Street firms trimmed their forward guidance following the earnings release. RBC Capital left its outperform rating intact but reduced its 12-month forecast from 340 to 320, citing organic revenue growth trailing consensus despite the full-year guide increase. KeyBanc maintained an overweight stance but cut its target from 285 to 260, noting that combined subscription and professional services revenue only marginally exceeded expectations and that Q4 outlook was broadly in-line with prior projections.

Workday’s January 2026 global study ‘‘Beyond Productivity: Measuring the Real Value of AI’’ surveyed 3,200 full-time employees at $100 million-plus organizations and found that nearly 40% of AI-generated time savings is absorbed by rework on low-quality outputs. While 85% of respondents report saving one to seven hours per week with AI tools, only 14% consistently achieve positive net outcomes without additional effort. The report underscores a disparity between leadership investment priorities—66% cite skills training as critical—and employee experience, with only 37% of high-rework users receiving training. Workday recommends reinvesting AI-driven capacity into upskilling and process redesign to convert speed gains into lasting business impact.