Workday (NASDAQ: WDAY) stock is on the rise following the company’s impressive quarterly report. As of 11 a.m. ET, the software specialist’s share price was up 3.7%, outperforming the S&P 500 and Nasdaq Composite, which were both up 0.4%. Earlier in trading, the stock had surged as much as 9.7%.
Workday released its fiscal 2027 first-quarter results after the market closed yesterday, exceeding Wall Street’s expectations for sales and earnings. The company reported non-GAAP earnings of $2.66 per share on revenue of $2.54 billion in Q1. This beat the average analyst estimate by $0.14 per share and $20 million in sales. Subscription revenues saw a 14.3% year-over-year increase to approximately $2.35 billion, driving overall sales up by 13.4% year over year.
Looking ahead, Workday reiterated its guidance for subscription revenue to fall between $9.925 billion and $9.950 billion for the fiscal year 2027. The company also raised its adjusted operating margin guidance to 30.5%, up from the previous forecast of 30%. Despite concerns about potential disruption from new artificial intelligence software, Workday’s strong Q1 performance and optimistic outlook are easing investor fears.
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In conclusion, Workday’s strong performance in Q1 and positive guidance for the future are boosting investor confidence in the stock. While it may not have made the list of top stocks to buy now, Workday’s continued growth and resilience in the face of competition make it a compelling option for investors looking for long-term gains.
