Antipodes Partners Trims Workday Holding Over AI Concerns

Antipodes Partners reduced its investment in Workday, Inc. during the second quarter of 2026, citing structural threats posed by artificial intelligence. The investment firm detailed the move in its Global Strategy investor letter, warning that agentic AI could reduce headcount growth in finance and human resources functions, which would directly challenge Workday's seat-based pricing model.

Despite the divestment, Antipodes acknowledged Workday's strong current financial performance. The software company reported a 27% increase in full-year free cash flow to $2.78 billion and a subscription backlog of $28.1 billion, representing a 12% increase. However, the investment firm noted that AI-driven cost pressures and defensive spending are compressing margins, while FY27 guidance suggests a deceleration in both revenue and margin growth.

The decision occurred during a period of broader market recovery where global equities gained 14.9% in US dollar terms. The Antipodes Global Value Strategy underperformed its benchmark during this period, as returns were heavily concentrated in semiconductor and hardware stocks.