CEO of Multi-Billion Dollar Software Giant Workday Assures Analysts: AI Agents Are Complementing Us, Not Replacing Us

Workday CEO Aneel Bhusri reassured investors during the company’s Q4 earnings call, emphasizing the enduring necessity of HR software against the backdrop of AI-powered apps. He stated, “No amount of vibe coding will replace the need for HR software providers like Workday,” countering concerns about potential disruption from lightweight AI tools. Workday achieved 13% revenue growth for the fiscal year ending January 31, reaching nearly $9.6 billion, yet its stock fell over 8% after projecting subscription revenue of $9 billion for the upcoming year, below Wall Street’s expectations of $10 billion. Bhusri, recently reappointed, acknowledged the current slow monetization of AI, but anticipates a strong second half of the year. Additionally, Workday will reduce its workforce by 2%, impacting 400 employees, after previously laying off 1,800. He reiterated that Workday’s AI solutions are intended to enhance existing HR functions, paving the way for a consumption-based revenue model similar to major cloud providers.

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