Overview
- Workday, which reported results Thursday, beat Wall Street estimates with adjusted EPS of $2.66 and revenue of $2.54 billion, driven by 14% subscription revenue growth.
- Management raised fiscal 2027 non‑GAAP operating margin guidance to 30.5% while keeping the company’s subscription revenue range unchanged, signaling near‑term profit improvement.
- Workday said more than 4,000 customers use at least one of its in‑house AI agents and that new ACV growth for agentic AI products rose by over 200%, with ACV meaning new annual contract value.
- The company has integrated its Sana self‑service agent into Microsoft 365 Copilot and announced co‑founder Aneel Bhusri’s return as CEO as part of a push toward faster product execution.
- Analysts remain cautious about execution risk, market saturation and when AI investments will become a material revenue driver even as shares jumped in after‑hours trading on the better results.