Workday reported better-than-expected Q1 earnings with adjusted EPS of $2.66 and revenue of $2.54 billion, driven by a 14.3% rise in subscription revenue. Operating income and cash flow also improved significantly, prompting the company to raise its full-year profit margin outlook to 30.5%. CEO Aneel Bhusri highlighted the company's strong position in AI and core business growth. Workday expects Q2 subscription revenue of $2.455 billion and continues to target nearly $10 billion in subscription revenue for fiscal 2027.
Workday received a Strong Buy rating with a target price of $145, reflecting a valuation of 13.5x FY2027 and 11.5x FY2028 earnings amid market pessimism. The company is benefiting from Agentic AI, which has boosted new contract value by over 200% yea...
Workday shares have dropped over 35% in the past year due to concerns that generative AI might replace its HR software platform. However, the company's Q1 2027 results showed a healthy 14.7% year-over-year growth in subscription revenue, indicating o...
