Key Takeaways
Shares of Workday ( WDAY ) are surging more than 10% in premarket trading Wednesday, a day after the human resource and finance software maker's fiscal 2025 fourth-quarter results topped analysts' estimates.
Workday reported $2.21 billion in revenue, including $2.04 billion in subscription revenue, with both surpassing Visible Alpha consensus. Adjusted earnings per share (EPS) came in at $1.92, also exceeding estimates.
The company projected first-quarter subscription revenue of $2.05 billion and $8.80 billion for fiscal 2026. Those were mostly in line with analysts' estimates.
CEO Sees Opportunities in AI, Government's Cost-Cutting Focus
Workday CEO Carl Eschenbach said in prepared remarks in Tuesday's earnings call that the company believes it has a "growing opportunity with the U.S. federal government thanks to the administration’s strong focus on driving efficiencies and IT modernization."
Eschenbach also said the growth of Workday's artificial intelligence (AI) products has put the technology "front and center in every conversation I have with customers, prospects, and partners. They want to move beyond incremental productivity gains—they’re looking for [return on investment] that will help drive growth back into their business."
Workday shares, which had lost 17% of their value over the past 12 months entering Wednesday, are up 11% in premarket trading.
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