GoKawiilAneel Bhusri, co-founder and executive chair of Workday, speaks at during the 5th Annual Workday Charity Classic in partnership with Stephen and Ayesha Curry's Eat. Learn. Play. at Stanford Golf Course in Stanford, California, on Aug. 28, 2024.
Workday shares popped 5% on Friday after the finance and human resources software maker reported results that came in stronger than expected, while bumping up its margin forecast for the full fiscal year.
Here's how the company did relative to LSEG consensus:
Earnings per share: $2.66 adjusted vs. $2.51 expected
$2.66 adjusted vs. $2.51 expected Revenue: $2.54 billion vs. $2.52 billion expected
Workday's revenue grew 13% in the fiscal first quarter, which ended on April 30, according to a statement. On Thursday, the company reported net income of $222 million, or 87 cents per share, up from $68 million, or 25 cents per share, one year earlier.
With respect to guidance, Workday called for a 30% adjusted operating margin and $2.46 billion in subscription revenue for the fiscal second quarter. Analysts polled by StreetAccount had anticipated a 30% margin and $2.45 billion in subscription revenue.
Management lifted Workday's full-year margin forecast. The company is now projecting a 30.5% adjusted operating margin, up from 30% as of February. The company is still looking for 12% to 13% growth.
Workday stock has been having its worst year since it went public in 2012, as investors have fretted that generative artificial intelligence models could reduce growth prospects for major software companies. As of Thursday's close, Workday shares were down 43% for 2026, while the S&P 500 index has gained about 9% in the same period.
During the quarter, Workday said Aneel Bhusri, a co-founder, was replacing Carl Eschenbach as CEO, and it announced that Sana AI agents were becoming available to clients.
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