Overview
- On Friday Workday reported a Q1 beat with $2.54 billion in revenue and $2.66 in adjusted EPS, and the stock jumped about 12% in premarket/after‑hours trading.
- Subscription revenue rose 14.3% year over year to $2.35 billion and the company reiterated full‑year subscription guidance of $9.925 billion to $9.950 billion.
- Workday said more than 4,000 customers now use its AI agents and that AI accounted for over 25% of new annual contract value from expansions.
- The company’s 12‑month subscription backlog expanded to about $8.81 billion and total backlog reached roughly $27.29 billion as management lifted its non‑GAAP operating margin target to 30.5%.
- Analysts said the results soothe short‑term fears that AI rivals will quickly displace incumbents but warned that several more quarters of execution and durable revenue gains are needed to change the longer‑term investment case.