Workday CEO Carl Eschenbach on Thursday tried to ease worries that artificial intelligence is destroying software business models.
"It's an overblown narrative, and it's not true," he told CNBC's "Squawk Box" from the World Economic Forum in Davos, Switzerland, calling AI a tailwind and "absolutely not a headwind" for the company.
Software stocks have sold off in recent months on concerns that new AI tools will upend the sector and displace longstanding and recurring businesses that once fueled big profits.
Workday shares lost 17% last year and have sunk another 15% since the start of 2026. In its third-quarter earnings report, the company shared lackluster subscription revenue guidance that spooked some analysts and investors.