Workday beats estimates for revenue and profit, stock jumps

Workday beats estimates for revenue and profit, stock jumps


Carl Eschenbach, CEO of Workday speaks on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 23, 2025.

Gerry Miller | CNBC 

Workday, the maker of human resources and finance software, reported better-than-expected quarterly results on Tuesday. The shares popped more than 7% in extended trading.

Here’s how the company did in comparison with LSEG consensus:

  • Earnings per share: $1.92 adjusted vs. $1.78 expected
  • Revenue: $2.21 billion vs. $2.18 billion expected

Revenue increased 15% year over year in the quarter that ended on Jan. 31, according to a statement. Net income fell to $94 million, or 35 cents per share, from $1.19 billion, or $4.52 per share, in the same quarter a year earlier.

“The prior year period benefited from a $1.1 billion release of the valuation allowance related to U.S. federal and state deferred tax assets,” Workday said.

The company said it’s seeing greater demand for artificial intelligence tools.

“Workday’s unified platform gives customers the ultimate advantage — helping them unlock value faster, reduce total cost of ownership, and harness the power of AI across our best-in-class HR and finance solutions,” CEO Carl Eschenbach said in the statement.

During the quarter, Workday announced the hiring of former UiPath CEO Rob Enslin as its new president and chief commercial officer. Workday also said it would use AI to summarize employee feedback in its Peakon product.

The company called for a 28% adjusted operating margin on $2.05 billion in subscription revenue for the fiscal first quarter. Analysts polled by StreetAccount had expected an adjusted margin of 26.7% and $2.06 billion in revenue.

For the 2026 fiscal year, Workday now sees an adjusted margin of 28%, with $8.8 billion in subscription revenue, implying 14% growth. That’s slightly higher than the forecast that management gave in November.

As of Tuesday’s close, Workday shares were flat year over year, while the S&P 500 index was up 1%.

Executives will discuss the results with analysts on a conference call starting at 4:30 p.m. ET.

This is breaking news. Please check back for updates.

WATCH: Workday CEO on the future of work: Will depend on both human and digital labor going forward

Workday CEO on the future of work: Will depend on both human and digital labor going forward



Source

Netanyahu hopes to announce the release of all hostages from Gaza ‘in the coming days’
World

Netanyahu hopes to announce the release of all hostages from Gaza ‘in the coming days’

Israeli Prime Minister Benjamin Netanyahu speaks during a joint press conference with U.S. President Donald Trump (not pictured) in the State Dining Room at the White House in Washington, D.C., U.S., Sept. 29, 2025. Jonathan Ernst | Reuters Israeli Prime Minister Benjamin Netanyahu said he hopes to announce the release of all hostages from Gaza […]

Read More
The bubble in people searching for ‘AI bubble’ has burst — what that means for the stocks
World

The bubble in people searching for ‘AI bubble’ has burst — what that means for the stocks

Retail investors’ fear of an “AI bubble” appears to have fallen off after spiking this summer. It could mean the stocks have further to balloon before they ultimately top out. The number of U.S. and worldwide web searches for the term “AI bubble” peaked on Aug. 20 and Aug. 21, respectively, according to Google Trends […]

Read More
Lyft CEO left Microsoft in the 90s to join a tiny startup called Amazon—here’s how Jeff Bezos convinced him
World

Lyft CEO left Microsoft in the 90s to join a tiny startup called Amazon—here’s how Jeff Bezos convinced him

In 1996, David Risher told Bill Gates he was quitting his management role at Microsoft, then already one of the world’s largest companies with annual revenue of nearly $8.7 billion, to take a job at a “tiny, little bookstore online,” called Amazon. “It wasn’t an entirely rational move,” Risher, who is now CEO of Lyft, […]

Read More