Workday shares rise 8.5 percent after Q1 earnings beat
Workday shares rose 8.5 percent after the firm beat first-quarter estimates. The results eased AI disruption concerns as subscription revenue grew 14.3 percent.
WORKDAY INC-CLASS A shares rose 8.5% on the morning of May 22 after the software maker beat first-quarter revenue and profit estimates. The results eased investor fears that AI competitors might disrupt demand for the firm's core enterprise human resources and finance tools. Workday is positioned to add over $2 billion to its $30.42 billion market valuation if these gains hold through the session.
### AI Integration Drives Subscription Growth Subscription revenue rose 14.3% to $2.35 billion during the quarter ending April 30. Chief Commercial Officer Rob Enslin said on Thursday evening that net new business accounted for 40% of that growth. Total revenue reached $2.54 billion, surpassing the $2.52 billion expected by LSEG data.
