Workday shares – Workday’s shares surged in extended trading after the company posted results that beat expectations and raised its full-year adjusted operating margin forecast, pointing to strength in its AI push as it also announced leadership and product updates.
Workday’s stock looked like it was bracing for another rough stretch—then the numbers landed.
On Thursday, the finance and human resources software maker reported results that came in stronger than expected and lifted its margin forecast for the full fiscal year. In extended trading, Workday shares jumped as much as 11%.
The quarter delivered a clear beat. Adjusted earnings per share were $2.66 versus $2.51 expected. Revenue came in at $2.54 billion versus $2.52 billion expected.
Workday said its revenue grew 13% in the fiscal first quarter, which ended on April 30. Net income was $222 million, or 87 cents per share, up from $68 million, or 25 cents per share, a year earlier.
Guidance also moved in the company’s favor. For the fiscal second quarter, Workday called for a 30% adjusted operating margin and $2.46 billion in subscription revenue. Analysts polled by StreetAccount had expected a 30% margin and $2.45 billion in subscription revenue.
Then came the bigger change: management lifted Workday’s full-year margin forecast. The company is now projecting a 30.5% adjusted operating margin, up from 30% as of February. Workday is still looking for 12% to 13% growth.
The stakes around that outlook have been high. Workday stock has been having its worst year since it went public in 2012. as investors have fretted that generative artificial intelligence models could reduce growth prospects for major software companies. As of Thursday’s close. Workday shares were down 43% for 2026. while the S&P 500 index had gained about 9% in the same period.
Workday’s latest update tries to speak directly to that fear.
During the quarter, the company said co-founder and executive chair Aneel Bhusri was replacing Carl Eschenbach as CEO. Workday also announced that its Sana AI agents were becoming available to clients.
In a statement, Bhusri said: “Our core business is strong, our AI strategy is working, and we’re moving with the speed and focus required to lead.”
Workday added that the number of clients using agents it built more than doubled from the previous quarter, with over 4,000 using at least one.
The results will now be tested against investor questions in real time. Executives are set to discuss the quarter and outlook on a conference call starting at 4:30 p.m. ET.
Workday WDAY earnings guidance adjusted operating margin subscription revenue AI agents Sana Aneel Bhusri Carl Eschenbach Sana AI agents fiscal first quarter ended April 30 2026 stock performance