Workday (NASDAQ:WDAY) saw its stock surge over 7% intra-day today after delivering better-than-expected fourth-quarter earnings and revenue, alongside a strong forecast for the upcoming fiscal year.
The AI-powered enterprise management software company reported adjusted earnings per share of $1.92, exceeding analyst expectations of $1.78. Quarterly revenue reached $2.21 billion, outpacing the $2.18 billion consensus estimate and reflecting 15% year-over-year growth.
Workday’s subscription revenue—a key performance metric—jumped 15.9% to $2.04 billion, while its 12-month subscription backlog increased by 15.2% to $7.63 billion. The total subscription revenue backlog expanded 19.7% to $25.06 billion, highlighting continued demand for its cloud-based HR and financial solutions.
The company credited strong execution, increased adoption of its full-suite and financial products, and growing interest in its AI-driven offerings as key drivers behind its performance.
Looking ahead to fiscal year 2026, Workday projects subscription revenue of $8.8 billion, a 14% increase. Additionally, the company raised its adjusted operating margin guidance by 50 basis points to 28%.