Workday Stock (WDAY) Soars as Activist Elliott Reveals Massive $2B Stake, Backs Management Strategy

Elliott Management just dropped a $2 billion vote of confidence—and Workday's stock is riding the wave.

The Activist Playbook

Elliott's stake signals aggressive backing for current leadership rather than the usual shake-up drama. Management gets applause instead of pressure—rare in the activist game.

Market Reaction

Shares jumped instantly on the news. That kind of move doesn’t happen without Wall Street smelling serious upside—or at least a juicy short-term play.

Because nothing makes investors happier than a hedge fund betting billions that someone else is finally doing their job right.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

Activist Elliott Cheers Workday’s Strategic Initiatives

Elliott issued a statement after Workday held its annual Financial Analyst Day yesterday, providing a series of updates. The company announced the $1.1 billion acquisition of artificial intelligence (AI) startup Sana. Workday also announced its collaboration with Microsoft (MSFT) to deliver a unified AI Agent experience for enterprise customers.

Meanwhile, Elliott stated that Workday CEO Carl Eschenbach, CFO Zane Rowe, and the entire team have made notable progress in recent years, helping the company bolster its positioning as a unique software franchise with industry-leading growth potential and superior customer retention.

The activist investor stated that it was “pleased” with its discussion with Workday’s management. Elliott believes that the strategic plan announced at the Financial Analyst Day reflects a “significant enhancement” of the company’s operating model and capital allocation framework. Elliott is optimistic about WDAY’s multi-year plan and expects it to drive significant long-term value creation for shareholders.  

Workday’s strategic efforts come amid intense competition, with rivals strengthening their businesses through acquisitions and the integration of AI into their offerings. Prior to the Sana deal, Workday acquired Paradox and Flowise in August.

Is WDAY a Good Stock?

Currently, Wall Street has a Moderate Buy consensus rating on Workday stock based on 20 Buys, seven Holds, and one Sell recommendation. The average WDAY stock price target of $279.36 indicates about 28% upside potential. As of Tuesday’s closing, Workday stock was down 15% year-to-date.