Workday's CEO says the company is seeing success in artificial intelligence.
Workday shares surged as much as 11% in extended trading on Thursday after the finance and human resources software maker reported results that came in stronger than expected, while bumping up its margin forecast for the full fiscal year.
Here's how the company did relative to LSEG consensus: Workday's revenue grew 13% in the fiscal first quarter, which ended on April 30, according to a statement. The company reported net income of $222 million, or 87 cents per share, up from $68 million, or 25 cents per share, one year earlier.
With respect to guidance, Workday called for a 30% adjusted operating margin and $2.46 billion in subscription revenue for the fiscal second quarter. Analysts polled by StreetAccount had anticipated a 30% margin and $2.45 billion in subscription revenue.
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. The company is still looking for 12% to 13% growth.
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 has gained about 9% in the same period.
During the quarter, Workday said Aneel Bhusri, a co-founder, was replacing Carl Eschenbach as CEO, and it announced that Sana AI agents were becoming available to clients.
"Our core business is strong, our AI strategy is working, and we're moving with the speed and focus required to lead," Bhusri was quoted as saying in the statement. Workday said the number of clients using agents it built more than doubled from the previous quarter, with over 4,000 using at least one.
Executives will discuss the results with analysts on a conference call starting at 4:30 p.m. ET.
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