Workday reported fiscal Q1 2027 revenues of $2.542 billion, up 13.5% year-over-year, with subscription revenues increasing 14.3% to $2.354 billion. Operating income surged to $338 million from $39 million last year, boosted by the absence of prior restructuring costs and strong AI-driven product adoption. The company reiterated its full-year subscription revenue guidance of about $9.93-$9.95 billion and raised its non-GAAP operating margin forecast to 30.5%. Workday continues expanding its AI platform and customer base globally, signaling confidence in its growth trajectory amid the AI technology wave.
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...
