Workday jumps 10% as it bumps up margin forecast on AI strength
Workday raised its full-year adjusted operating margin forecast to 30.5% as clients using its AI agents topped 4,000, the company said.
- On Thursday, Workday shares surged as much as 11% in extended trading after the finance and human resources software maker reported stronger-than-expected results and raised its adjusted operating margin forecast to 30.5%.
- Workday shares were down for the year as of Thursday, as investors fretted that generative artificial intelligence models could reduce growth prospects for major software companies.
- During the quarter, Workday reported that over 4,000 clients are using its Sana AI agents, more than doubling from the prior period, while co-founder Aneel Bhusri is replacing Carl Eschenbach as CEO.
- Fiscal first-quarter revenue reached $2.54 billion, up 13% year-over-year, while net income surged to $222 million, or 87 cents per share, from the prior year.
- Bhusri stated, "Our core business is strong, our AI strategy is working, and we're moving with the speed and focus required to lead," underscoring management confidence in the company's trajectory.
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Why Workday Stock Is Soaring Today
Key PointsWorkday's sales and earnings in fiscal Q1 beat Wall Street's expectations. The company raised its adjusted operating income margin target for the year. 10 stocks we like better than Workday › Workday (NASDAQ: WDAY) stock is posting gains on Friday following the company's latest quarterly report. The software specialist's share price was up 3.7% as of 11 a.m. ET. Meanwhile, the S&P 500 and the Nasdaq Composite were both up 0.4%. The sto…
Workday wants AI to punch in instead of having to hire new recruits
Workday is hoping to boost its revenue and margins by using AI agents instead of hiring people, according to its CEO. After announcing revenue growth, Aneel Bhusri – the company co-founder who was reinstated as CEO in February – said his aspiration is to keep headcount the same while sustaining growth and increasing margins by harnessing AI. "I'd love to see us continue the growth that we had in Q1, but keep headcount as close to flat for the ye…
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