Workday shares reportedly jumped nearly 12% premarket on Friday after the enterprise software maker beat first-quarter revenue and anticipated earnings, easing concerns that AI competitors such as Anthropic could immediately dismantle the market share of legacy software providers.
According to Chief Commercial Officer Rob Ennsulin, subscription revenue at the Pleasanton- a California-based company jumped 14.3% to $2.35 billion. This set new business driving standards 40% of that growth.
“We are not sure these results will be a thesis changer but provide comforting data points nonetheless,” said Barclays' analysts.
It has been observed that the stock has fallen over 43% year to date while the S&P 500 software and services is also down about 14% in the same period.
The American financial company has been adding AI features across its platform to remain competitive including the launch of its new conversational interface.
The data compiled by LSEG stated that quarterly revenue came in at $2.54 billion surpassing analysts’ forecasts of $2.52 billion. Notably, its quarterly adjusted per-share profit came in at $2.66, above analysts’ estimate of $2.51.
“We believe Workday is relatively insulated from AI disruption due to its 80 million users, strong retention, and status as a system of record,” said analysts at Jefferies.
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