Workday's stock surged by as much as 11% in after-hours trading following the release of its fiscal first-quarter results, which exceeded analyst expectations. The company reported adjusted earnings per share of $2.66, surpassing the $2.51 forecast, and revenue of $2.54 billion, slightly above the anticipated $2.52 billion. This represents a 13% year-over-year revenue growth.
Workday also reported a net income of $222 million, or 87 cents per share, a significant increase from $68 million, or 25 cents per share, a year earlier. Looking ahead, Workday has raised its full-year adjusted operating margin forecast to 30.5%, up from 30%, while maintaining its growth outlook of 12% to 13%.
Despite these positive results, Workday's stock has faced challenges this year, down 43% in 2026, as investors worry about the impact of generative AI on software growth. The company has also seen a doubling in the number of clients using its AI agents, with over 4,000 clients now engaged.
Aneel Bhusri, a co-founder, has taken over as CEO, emphasizing the strength of the core business and the effectiveness of their AI strategy. Analysts will have the opportunity to discuss these results further during a conference call