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Workday Stock Surges After Beating Estimates
21 May
Summary
- Workday surpassed earnings estimates by 5.98% with $2.66 per share.
- Quarterly revenue of $2.54 billion exceeded analyst expectations.
- Subscription revenue backlog shows strong year-over-year growth.
Workday has reported a strong first quarter, exceeding financial expectations set by analysts. The company announced earnings per share of $2.66, surpassing the estimated $2.51 by nearly 6%. Quarterly revenue also showed positive performance, reaching $2.54 billion, which was slightly above the consensus estimate of $2.52 billion.
Subscription revenues demonstrated significant growth, climbing 14.3% to $2.35 billion compared to the same period last year. The 12-month subscription revenue backlog increased by 15.5% year-over-year, reaching $8.81 billion. Total subscription revenue backlog also saw a healthy rise of 10.9%, totaling $27.294 billion.
CEO Aneel Bhusri expressed optimism about Workday's strategic positioning, particularly in light of emerging AI opportunities. He emphasized the strength of their core business and the effectiveness of their AI strategy, positioning the company to lead in this evolving technological landscape.
Looking ahead, Workday projects its fiscal 2027 subscription revenue to be in the range of $9.93 billion to $9.95 billion. Following these positive results, Workday's stock experienced a notable surge, increasing by 13.05% in extended trading.
