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Workday stock jumps 9.4% after beating Q1 earnings and boosting AI-driven growth outlook

Company Fundamentals
22 May 2026
Lekha Gupta
View Source
Bullish
pluang ai news

Workday reported Q1 earnings of $2.66 per share, surpassing estimates of $2.51, with revenue of $2.54 billion beating the $2.52 billion consensus. The company highlighted strong AI adoption, with AI contributing over 25% of new contract value and expanding integrations with Microsoft and Google. Subscription revenue rose 14% to $2.354 billion, and the 12-month subscription backlog grew 15.5% to $8.81 billion. Workday raised its fiscal 2027 operating margin outlook to 30.5%, citing efficiency and AI leverage, while reaffirming subscription revenue guidance of nearly $10 billion.

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