Workday (WDAY) Q1 earnings report 2027
Aneel Bhusri, co-founder and executive chairman of Workday, speaks at the 5th Annual Workday Charity Classic, in partnership with Stephen and Ayesha Curry’s Eat. To learn. Play. on August 28, 2024 at Stanford Golf Course in Stanford, California.
Noah Graham | Getty Images
Working day Shares rose as much as 14% in extended trading Thursday after the maker of finance and human resources software reported stronger-than-expected results while boosting its margin forecast for the full fiscal year.
The company’s performance according to the LSEG consensus is as follows:
- Earnings per share: $2.66 vs expected $2.51
- Revenues: 2.54 billion dollars, while the expectation was 2.52 billion dollars
Workday’s revenue rose 13% in the first quarter of the fiscal year ending April 30. expression. The company reported net income of $222 million, or 87 cents per share, down from $68 million, or 25 cents per share, a year ago.
Regarding the guidance, Workday claimed adjusted operating margin of 30% and subscription revenue of $2.46 billion for the fiscal second quarter. Analysts polled by StreetAccount were expecting margins of 30% and subscription revenue of $2.45 billion.
Management raised Workday’s full-year margin forecast. The company currently forecasts an adjusted operating margin of 30.5%, down from 30% in February. The company is still looking for 12 percent to 13 percent growth.
Workday shares are having their worst year since going public in 2012 as investors worry that generative AI models could dampen the growth prospects of major software companies. As of Thursday’s close, Workday shares were down 43% for 2026, while the S&P 500 index was up about 9% over the same period.
During the quarter, Workday announced that co-founder Aneel Bhusri would replace Carl Eschenbach as CEO and that Sana AI agents were brought on board. become available to customers.
“Our core business is strong, our AI strategy is working, and we are moving with the speed and focus needed to lead,” Bhusri was quoted as saying in the statement. Workday said the number of customers using the agencies it created more than doubled from the previous quarter, with more than 4,000 people using at least one.
Gerrit Kazmaier, Workday’s president of product and technology, said in a conference call with analysts that annual revenue from agency AI solutions is approaching $500 million.
WRISTWATCH: Orlando Bravo: The worst is over for software stocks
