Workday jumps 10% as it bumps up margin forecast on AI strength
Workday's shares rose by 11% after the company reported stronger-than-expected earnings and raised its margin forecast. The finance and human resources software maker achieved a revenue growth of 13% in the fiscal first quarter and announced a new CEO. Despite a challenging year for the stock, management expressed confidence in their AI strategy and overall business strength.
- ▪Workday's earnings per share were $2.66 adjusted, surpassing the expected $2.51.
- ▪The company reported a revenue of $2.54 billion, slightly above the anticipated $2.52 billion.
- ▪Workday's adjusted operating margin forecast for the full year was raised to 30.5% from 30%.
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Workday shares surged as much as 11% in extended trading on Thursday 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 expectedRevenue: $2.54 billion vs. $2.52 billion expectedWorkday's revenue grew 13% in the fiscal first quarter, which ended on April 30, according to a statement. 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.
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