Workday Shares Jump 6% As Elliott Takes $2 Billion Stake

Shares of Workday (NASDAQ: WDAY) climbed more than 6% on Wednesday after activist investor Elliott Management disclosed a stake exceeding $2 billion in the HR software provider.

Elliott voiced support for Workday's leadership team, noting that the company's CEO and CFO had demonstrated effective management in recent years.

Workday also announced plans to repurchase $5 billion of stock through fiscal 2027, signaling confidence in its growth trajectory.

The company has been pursuing acquisitions to strengthen its position in artificial intelligence. Earlier this week, Workday unveiled a $1.1 billion deal to acquire AI firm Sana, adding to earlier purchases of Paradox and Flowise.

The HR software sector has seen heightened M&A activity. Last month, private equity firm Thoma Bravo agreed to acquire Dayforce, a Workday rival, for $12.3 billion.