Shares in Workday jumped nearly 9% on Wednesday after activist hedge fund Elliott Management disclosed a stake worth more than $2bn in the HR software provider, while publicly endorsing its leadership team, according to a report by Reuters.

Elliott praised CEO Carl Eschenbach and CFO Zane Rowe for “strong progress in recent years,” describing the management team as proven and effective. The fund said it was encouraged by ongoing engagement with Workday and expressed confidence in the company’s multi-year strategy to deliver long-term shareholder value.

The move comes as Workday announced a $5bn share buyback programme through fiscal 2027, underlining confidence in its growth trajectory. Analysts at Jefferies said Elliott’s involvement could provide “healthy pressure” for Workday to deliver on free cash flow targets for 2028.

The California-based firm has also been active on the M&A front, striking a $1.1bn deal to acquire AI company Sana this week, following recent acquisitions of Paradox and Flowise.

Elliott’s position adds further momentum in a consolidating HR software sector. Last month, private equity firm Thoma Bravo agreed to acquire Workday rival Dayforce for $12.3bn.

Workday shares remain down about 15% year-to-date despite Wednesday’s rally.