Latest news with #WorkdayInc
Yahoo
24-05-2025
- Business
- Yahoo
Why Workday Inc. (WDAY) Crashed On Friday
We recently published a list of . In this article, we are going to take a look at where Workday Inc. (NASDAQ:WDAY) stands against other Friday's worst-performing stocks. Workday dropped its share prices by 12.52 percent on Friday to finish at $238.01 each as investors soured on its mixed earnings performance in the first quarter of fiscal year 2026. In its financial statement, Workday Inc. (NASDAQ:WDAY) said net income during the period declined by 36 percent to $68 million from the $107 million registered in the same period last year, despite revenues growing by 12.56 percent to $2.24 billion from $1.99 billion year-on-year. Looking ahead, the company reiterated its fiscal 2026 subscription revenue growth outlook of 14 percent to $8.8 billion and increased its fiscal 2026 non-GAAP operating margin guidance to approximately 28.5 percent. A group of finance professionals analyzing market trends on their computer screens. For the second quarter alone, subscription revenues are expected to grow by 13.5 percent to $2.16 billion, while non-GAAP operating margin is projected to increase by 28 percent year-on-year. 'Workday delivered another solid quarter, a testament to the durability of our business and the relevance of our platform as CEOs increasingly turn to us to drive efficiency, agility, and growth,' said Workday Inc. (NASDAQ:WDAY) CEO Carl Eschenbach. 'We are delivering real ROI for our customers by helping them effectively manage their most critical assets—people and money—on one unified platform with AI at the core,' he added. Overall, WDAY ranks 5th on our list of Friday's worst-performing stocks. While we acknowledge the potential of WDAY, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDAY and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Workday Inc (WDAY) Q1 2026 Earnings Call Highlights: Strong Subscription Growth and AI ...
Subscription Revenue: $2.059 billion, up 13% year-over-year. Total Revenue: $2.240 billion, growth of 13%. 12-Month Subscription Revenue Backlog (cRPO): $7.63 billion, increasing 15.6%. Total Subscription Revenue Backlog: $24.62 billion, up 19%. Gross Revenue Retention Rate: 98%. Non-GAAP Operating Income: $677 million, representing a non-GAAP operating margin of 30.2%. GAAP Operating Income: $39 million, impacted by a $166 million restructuring charge. Operating Cash Flow: $457 million, growth of 23%. Cash and Marketable Securities: $8 billion at the end of the quarter. Headcount: Approximately 19,300 employees. Q2 FY26 Subscription Revenue Guidance: Approximately $2.160 billion, growth of 13%. FY26 Subscription Revenue Guidance: $8.8 billion. FY26 Non-GAAP Operating Margin Guidance: Approximately 28.5%. FY26 Operating Cash Flow Outlook: $2.75 billion. FY26 Capital Expenditures: Approximately $250 million. Warning! GuruFocus has detected 7 Warning Signs with INTU. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Workday Inc (NASDAQ:WDAY) reported a solid first quarter with 13% subscription revenue growth and a non-GAAP operating margin of 30%. The company saw strong customer adoption across key verticals, geographies, and customer segments, including new HCM relationships with United Airlines and expansions with FedEx and CVS Health. Workday Inc (NASDAQ:WDAY) continues to innovate with AI, with new ACV across AI products more than doubling year over year in Q1. The company launched WorkdayGO to target the emerging and medium enterprise market, offering faster implementations and a clear pricing model. Workday Inc (NASDAQ:WDAY) has five industries exceeding $1 billion in annual recurring revenue, showcasing the strength and diversity of its business. The economic environment remains uncertain, with potential impacts on specific markets such as SLED and international business. There is a heightened macro uncertainty, particularly across certain markets and verticals, which could impact growth prospects. GAAP operating income was impacted by a $166 million charge related to restructuring earlier in the year. The company is keeping an eye on the international markets due to potential macro headwinds that could affect investment decisions. Despite strong results, Workday Inc (NASDAQ:WDAY) acknowledges that no company is immune to potential headwinds in the current economic climate. Q: Can you discuss the current macroeconomic environment and its impact on Workday's guidance? A: Carl Eschenbach, Co-CEO, emphasized that Workday's value proposition remains strong regardless of economic conditions due to the ROI and TCO benefits it provides. He noted that while they are monitoring certain sectors like SLED and international markets, the company's diverse opportunities and AI innovations give them confidence to maintain their full-year guidance. Q: How is WorkdayGO expected to impact the medium enterprise market? A: Carl Eschenbach explained that WorkdayGO is designed to target emerging and medium enterprises by offering better pricing, packaging, and faster deployment times. This initiative aims to leverage Workday's enterprise-grade platform to capture a significant opportunity in this market segment. Q: What is the adoption rate and impact of Extend and ExtendPro? A: Carl Eschenbach highlighted that Extend and ExtendPro have seen significant adoption, with ExtendPro's usage more than doubling year-over-year. These tools allow customers and partners to innovate on the Workday platform, contributing to the growth of the Workday Marketplace and enhancing the platform's value. Q: How is Workday approaching AI and what impact is it having on sales cycles? A: Gerrit Kazmaier, President of Product and Technology, stated that Workday is integrating AI deeply into business processes, not just automating existing APIs. This approach is enhancing recruiter capacity and speeding up legal processes. Carl Eschenbach added that AI solutions are accelerating sales cycles, particularly in selling back to the existing customer base. Q: What is Workday's strategy for capital allocation, especially regarding AI and potential acquisitions? A: Zane Rowe, CFO, mentioned that Workday prioritizes organic growth and strategic inorganic opportunities. The company remains open to acquisitions that can accelerate technology and talent acquisition, maintaining a high bar for potential deals while also focusing on returning capital to shareholders through buybacks. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Workday Introduces Illuminate AI Agents to Revolutionize Workflows
On May 19, Workday Inc. (NASDAQ:WDAY) unveiled Illuminate AI Agents, a new generation of AI-powered tools aimed at accelerating hiring, enhancing frontline worker experiences, and streamlining financial processes. Designed to boost productivity, these agents integrate Workday's responsible AI foundation and extensive HR and finance expertise. A man in black suit holding a tablet looks at stock market data on a monitor. Photo by Tima Miroshnichenko on Pexels "The key to unlocking real business value with AI is to actively reshape the very core of how businesses operate," said Gerrit Kazmaier, Workday's President of Product and Technology. Built on a dataset of over 1 trillion annual transactions, these AI tools turn data into actionable intelligence, improving decision-making, compliance, and efficiency. Workday's new Illuminate AI Agents enhance various business functions, including hiring, legal workflows, finance, workforce management, and procurement. The Contingent Sourcing Agent speeds up temporary hiring, while the Contract Intelligence & Negotiation Agents streamline contract reviews and risk detection. The Document Driven Accounting Agent automates financial data extraction for billing and invoicing, and the Frontline Agent helps manage shifts and ensure compliance. The Self-Service Agent assists employees with inquiries and task automation, while the Supplier Contracts Agent optimizes procurement by analyzing agreements to align with contract terms. NetApp has reported millions in savings using Workday's AI, underscoring its real-world business impact. Workday's Agent System of Record enables seamless deployment, while Illuminate AI, powered by vast HR and financial datasets, ensures AI solutions align with real business needs. By focusing on practical AI applications, Workday reinforces its leadership in enterprise AI, delivering measurable value and driving business transformation. While we acknowledge the potential of Workday Inc. (NASDAQ:WDAY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDAY and that has 100x upside potential, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
Yahoo
22-05-2025
- Business
- Yahoo
Workday Named a Leader in 2025 Gartner® Magic Quadrant™ for Cloud-Based ERP for U.S. Local Government
Assessed for Workday Human Capital Management and Workday Financial Management, Workday is positioned highest in Execution and furthest in Vision PLEASANTON, Calif., May 21, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people, money, and agents today announced it has been named a Leader in the 2025 Gartner® Magic Quadrant™ for ERP for US Local Government1. A complimentary copy of the report is available here. Every day, local governments across the United States are working to serve their citizens faster and more effectively. The Workday platform brings Workday Human Capital Management and Workday Financial Management together in one place, helping these governments manage their finances and their human and agentic resources in a single system. "We understand the unique challenges local governments face, from managing complex budgets and workforces to delivering essential services to their communities," said Michael Hofherr, senior vice president and group general manager for industry, Workday. "We believe this recognition from Gartner reflects our success in providing a unified platform that enables our local government customers to be more agile and data-driven." Workday's unified approach provides real-time insights, streamlines processes, and improves decision-making. With Workday, local governments are able to: Enhance Financial Management: Improve budgeting, forecasting, and reporting with greater transparency and control. Optimize Workforce Management: Attract, retain, and develop talent, while managing payroll, benefits, and compliance effectively. Drive Operational Efficiency: Automate manual processes, streamline workflows, and improve productivity across departments. Citizen-centric Success with Workday's Local Government Customers "With Workday, we can answer questions and get to the root cause of problems quickly, and it's less complex than our previous system, which had 10 to 15 years worth of highly customized integrations," said Javier Baca, director of information technology, Pima County, AZ. "Less complexity results in greater efficiency." "Workday gives us one HCM and finance solution – that now means one user experience and one security model," said Laurie Foster, accounting manager, Clark County, WA. "That's turned into a 60% faster payroll, a 15% reduction in unapproved spend, and $1.6 million in annual savings." "The move to a fully integrated system, with features such as self-service capabilities and real-time reporting, means quicker turnaround times and overall exceptional service for everyone we serve," said Jennifer Wynn, director of financial services, Tulsa County. _______________________ 1 Gartner, Magic Quadrant for Cloud-Based ERP for U.S. Local Government, Albert Gautheir, Todd Kimbriel, Robert Stoneman, 19 May 2025. For More Information Download a complimentary copy of the report here. Learn how public-sector CIOs are using Workday: How Public Sector CIOs Mitigate Risk to Drive Change. Read more about news, trends, and insights from Local Government on the Workday blog. Gartner DisclaimerGARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. About WorkdayWorkday is the AI platform for managing people, money, and agents. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 11,000 organizations around the world and across industries – from medium-sized businesses to more than 60% of the Fortune 500. For more information about Workday, visit © 2025 Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders. Forward-Looking StatementsThis press release contains forward-looking statements including, among other things, statements regarding Workday's plans, beliefs, and expectations. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to, risks described in our filings with the Securities and Exchange Commission ("SEC"), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law. Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday's discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available. View original content to download multimedia: SOURCE Workday Inc. 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Yahoo
21-05-2025
- Business
- Yahoo
Judge allows Workday AI bias lawsuit to proceed as collective action
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. Workday Inc. will have to face a collective-action lawsuit alleging that the company's artificial intelligence-based applicant recommendation system discriminated against workers age 40 and older (Mobley v. Workday, Inc.), a federal judge ruled Friday in the U.S. District Court for the Northern District of California. Judge Rita Lin granted the applicant's request for preliminary certification of a collective action on the age discrimination claim because applicants 'are alike in the central way that matters: they were allegedly required to compete on unequal footing due to Workday's discriminatory AI recommendations,' according to the order. The applicant and four opt-in plaintiffs said they received hundreds of quick rejections without interviews for jobs via Workday, in violation of the Age Discrimination in Employment Act. Workday has said it could be difficult to identify members of the collective because of the potential number of applicants affected, but the judge said 'those challenges do not appear insurmountable.' 'If the collective is in the 'hundreds of millions' of people, as Workday speculates, that is because Workday has been plausibly accused of discriminating against a broad swath of applicants. Allegedly widespread discrimination is not a basis for denying notice,' Lin ruled. The class will include individuals aged 40 and over who were denied employment recommendations for job opportunities through Workday's job application platform from Sept. 24, 2020, through 'the present,' the court said. A Workday spokesperson said the company continues to believe the case is without merit. 'This is a preliminary ruling at an early stage of this case, and before the facts have been established. We're confident that once those facts are presented to the court, the plaintiff's claims will be dismissed,' the spokesperson said in an emailed statement to HR Dive. To prove disparate impact under the ADEA, plaintiffs need to show a significant disparate impact on a protected class or group; identify the employment practices at issue; and demonstrate a causal relationship between those practices and the disparate impact, the court said. Workday argued that the applicant should be held to a significantly higher burden of proof at the first stage of the 'similarly situated' analysis because discovery has already started. 'In essence, Workday proposes a sliding scale, in which the more discovery has occurred, the more evidence plaintiff should have to provide,' per the order. The judge declined to apply a sliding scale standard, 'which is contrary to the procedure used by virtually all district courts in this circuit.' That type of approach 'would be impossible to apply with consistency, would encourage gamesmanship' and is contrary to precedent, the judge said. Workday also presented several arguments for why the plaintiff's lawsuit should not be granted class-action status. The company said it doesn't offer employment recommendations, so even the plaintiff shouldn't be part of the collective; it said the policy in question is not uniformly applied to all applicants; and Workday said the variation in the proposed class members' qualifications for the jobs, the number of jobs applied to and the rejection rate mean the applicants could not be similarly situated. The court said that Workday's own website and the company's responses during discovery run contrary to its claim that it doesn't recommend applicants. The court noted that the proposed class only includes individuals whose applications were subject to Workday's AI; and the court said the plaintiff 'is not required to prove that each member of the proposed collective is identically situated … his burden is to identify legal or factual similarities that are material to the resolution of the case.' Judge Lin ordered Workday and the plaintiffs to work together to identify the best way to notify potential class members. Correction: In a previous version of this article, the date range of the applicants who could be included in the class was misstated. The class will include individuals aged 40 and over who were denied employment recommendations for job opportunities through Workday's job application platform from Sept. 24, 2020, through 'the present." Sign in to access your portfolio
