Core Points - The U.S. stock market will be closed on Thanksgiving, November 27, 2025, and will reopen on Black Friday, November 28, 2025, with an early closure at 1 p.m. ET [10][20][21] - Normal trading hours will resume on Monday, December 1, 2025, with both NYSE and Nasdaq operating from 9:30 a.m. to 4 p.m. ET [2][16] - Key holiday dates for 2025 include early closures on November 28 and December 24, and full closures on November 27 and December 25 [4][21] Trading Environment - Early closures on Black Friday typically result in lighter trading volumes, which can lead to increased price volatility [1][13][15] - The bond market will also close early on Black Friday at 2 p.m. ET, affecting settlements for fixed-income securities [14][20] - Investors are advised to plan trades around these holiday schedules to avoid unexpected price swings and missed opportunities [17][19][20] Market Behavior - The days surrounding Thanksgiving are characterized by calm price action, with fewer economic releases and muted corporate news flow [8][22] - Retail participation tends to drop significantly during this period, leading to a higher share of turnover from algorithmic trading [9][22] - Investors should use the holiday period to review portfolios and evaluate market trends, as trading volumes may remain low even after Black Friday [18][22]

Core Viewpoint - Citigroup has lowered the target price for Workday from $261 to $247 while maintaining a "Neutral" rating [1] Summary by Category Company Analysis - The adjustment in target price reflects a cautious outlook on Workday's performance in the market [1] - The "Neutral" rating indicates that the company is expected to perform in line with market expectations without significant upside potential [1] Market Implications - The reduction in target price may influence investor sentiment and trading activity related to Workday shares [1] - Maintaining a "Neutral" rating suggests that analysts do not foresee immediate catalysts for growth or decline in the company's stock [1]

Market Overview - All three major U.S. stock indexes achieved their fourth consecutive daily gains, driven by optimism from Nvidia's strong quarterly results and positive forward guidance from Dell Technologies [1][9] - Wall Street has shifted its expectations towards a potential interest rate cut by the Federal Reserve in December, which is seen as a significant factor influencing market performance [2][9] Economic Indicators - A Reuters poll indicates analysts expect the S&P 500 to rise by 12% by year-end 2026, supported by a robust economy and continued strength in the tech sector [2][9] - The Fed's Beige Book had minimal impact on rate cut expectations, with markets pricing in an 84.9% probability of a 25-basis-point reduction in the Fed funds target rate at the December meeting [5][10] Sector Performance - The S&P 1500 Airlines index rose by 3.0%, reflecting strong performance on a traditionally busy travel day [5][10] - Among the S&P 500 sectors, utilities led in percentage gains, while communication services experienced the largest decline [7][10] Company-Specific Developments - Dell Technologies saw a 5.8% increase in stock price following better-than-expected earnings and an optimistic forecast [7][10] - Workday's stock fell by 7.9% after reporting third-quarter subscription revenue that met estimates, while Deere's shares dropped by 5.7% due to a weaker-than-expected annual profit forecast impacted by tariffs [7][10] Market Breadth - Advancing issues outnumbered decliners by a ratio of 3.37-to-1 on the NYSE, with 290 new highs and 29 new lows recorded [8][10] - On the Nasdaq, 3,183 stocks advanced compared to 1,492 that declined, resulting in a 2.13-to-1 ratio of advancing to declining issues [8][10]

Core Viewpoint - Stifel has lowered Workday's target price from $255 to $235 while maintaining a "Hold" rating, indicating that the company's business momentum does not show any signs of stability [1] Summary by Category - **Target Price Adjustment** - Stifel reduced Workday's target price from $255 to $235 [1] - **Rating** - The rating remains "Hold" despite the target price adjustment [1] - **Business Momentum** - There are no indications of stability in Workday's business momentum [1]

Market Overview - Major U.S. stock indices continued to rise, with the S&P 500 recovering above 6800 points, driven by a rebound in technology stocks and increasing likelihood of a Federal Reserve rate cut in December [1][4] - The Dow Jones Industrial Average rose by 314.67 points (0.67%) to close at 47427.12 points, while the Nasdaq Composite increased by 0.82% to 23214.69 points, and the S&P 500 climbed 0.69% to 6812.61 points [1] Sector Performance - The airline sector saw a significant increase of over 3%, reflecting the start of the holiday travel season, with the S&P 1500 Airline Index soaring by 3.4% [1][5] - Notable technology stocks showed mixed performance, with Tesla and Microsoft up by 1.7%, Nvidia by 1.3%, while Amazon and Meta experienced slight declines [2] Company Highlights - Dell Technologies surged by 5.8% due to strong demand for AI data center servers, exceeding quarterly earnings expectations [2] - Oracle's stock rose by 4.0%, with Deutsche Bank projecting minimal impact on earnings per share even without OpenAI-related revenue [2] - Workday's shares fell over 8% after reporting third-quarter subscription revenue that met expectations [6] Economic Indicators - Initial jobless claims decreased by 6000 to 216,000, the lowest level since April, although continued claims are on the rise, indicating a challenging labor market [3] - Durable goods orders increased by 0.5% in September, aligning with market expectations, but growth slowed compared to August [3] - Retail sales rose by 0.2% in September, a deceleration from the revised 0.6% growth in August [3] Federal Reserve Insights - The Federal Reserve's Beige Book indicated ongoing economic challenges, with low hiring intentions and persistent inflation concerns [3][4] - Market expectations for a 25 basis point rate cut in December have surged to 84.9%, nearly doubling from the previous week [4]

Core Insights - Robinhood Markets emerged as the best-performing stock in the S&P 500, with shares soaring nearly 11% following the announcement of a joint venture to acquire a stake in LedgerX, enhancing its offerings in prediction markets [4][9] - Major U.S. equity indexes, including the S&P 500 and Dow, extended their winning streak to four sessions, driven by optimism surrounding a potential rate cut in December [3] - Dell Technologies saw its shares jump close to 6% after raising its full-year sales and profit outlook, citing strong AI-driven demand with record AI server orders exceeding $12 billion year-to-date [5] - Oracle's stock gained 4% despite previous losses, as analysts suggested the recent sell-off may have been overdone [6] - Workday's shares tumbled nearly 8% due to an underwhelming fourth-quarter subscription revenue forecast, attributed to soft demand from higher education and cautious corporate spending [7][9] - Deere & Company experienced a decline of close to 6% after warning of a challenging market environment, with CEO John May indicating ongoing pressures from tariffs and broader agricultural sector challenges [8][10]

Core Insights - Workday reported stronger fiscal third-quarter results with a revenue increase of 12.6% to $2.432 billion, driven by subscription revenue growth of 14.6% year over year [1] - Despite positive earnings of $2.32 per share, which exceeded analyst expectations of $2.17, shares fell more than 9% due to concerns over costs associated with AI expansion [1] - The company raised its full-year subscription guidance, anticipating fiscal 2026 subscription revenue of $8.828 billion, representing a 14% growth [2] Financial Performance - Revenue for the third quarter reached $2.432 billion, with subscription revenue at $2.244 billion [1] - Earnings per share were reported at $2.32, surpassing the expected $2.17 [1] - For the quarter ending January 2026, Workday guided to subscription revenue of $2.355 billion, an increase of 15.5% [3] Growth Initiatives - Workday cited broad customer demand and accelerating adoption of AI-powered finance and HR tools as key drivers of growth [2] - CFO Zane Rowe indicated that the Q3 performance reflected progress across multiple growth initiatives [2] - The company projects a non-GAAP operating margin of roughly 29% for fiscal 2026 [2] and at least 28.5% for the quarter ending January 2026 [3]

Revenue Performance - Total revenues for the three months ended October 31, 2025, were $2.4 billion, a 13% increase from $2.2 billion in the prior year period [136]. - Subscription services revenues for the three months ended October 31, 2025, were $2.2 billion, reflecting a 15% increase from $2.0 billion in the prior year period [136]. - Subscription services revenues accounted for approximately 92% of total revenues for the three and nine months ended October 31, 2025 [125]. - Professional services revenues for the three months ended October 31, 2025, were $188 million, a decrease of 7% from $201 million in the prior year period [136]. Operating Income - GAAP operating income for the three months ended October 31, 2025, was $259 million, a 57% increase from $165 million in the prior year period [123]. - Non-GAAP operating income for the three months ended October 31, 2025, was $692 million, a 22% increase from $569 million in the prior year period [123]. - GAAP operating income for the three months ended October 31, 2025, was $259 million, or 10.7% of revenues, compared to $165 million, or 7.6% of revenues in the prior year [161]. - Non-GAAP operating income for the nine months ended October 31, 2025, was $2.1 billion, or 29.2% of revenues, compared to $1.6 billion, or 25.7% of revenues in the prior year [164]. Costs and Expenses - Total costs and expenses for the three months ended October 31, 2025, were $2.2 billion, an increase of $178 million, or 9%, compared to the prior year period [141]. - For the nine months ended October 31, 2025, total costs and expenses were $6.5 billion, an increase of $578 million, or 10%, compared to the prior year [142]. - Costs of subscription services for the three months ended October 31, 2025, were $395 million, an increase of $65 million, or 20%, compared to the prior year [143]. - Costs of subscription services for the nine months ended October 31, 2025, were $1.1 billion, an increase of $191 million, or 21%, compared to the prior year [144]. Cash and Investments - Cash, cash equivalents, and marketable securities as of October 31, 2025, totaled $6.8 billion, a 4% decrease from $7.2 billion in the prior year [123]. - As of October 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $6.8 billion, primarily for working capital and general corporate purposes [174]. - Cash provided by operating activities increased to $1.7 billion for the nine months ended October 31, 2025, compared to $1.3 billion in the same period of 2024, driven by higher cash collections of $767 million [178]. - Free cash flows for the nine months ended October 31, 2025, were $1.6 billion, up from $1.2 billion in the prior year, reflecting improved cash collections and decreased capital expenditures [184]. Restructuring and Workforce - The company reduced approximately 7.5% of its workforce as part of the Fiscal 2026 Restructuring Plan announced in February 2025 [120]. - Restructuring expenses for the nine months ended October 31, 2025, were $172 million, primarily related to the Fiscal 2026 Restructuring Plan [158]. - Share-based compensation expense increased by $105 million for the nine months ended October 31, 2025, compared to the prior year, primarily due to the Fiscal 2026 Restructuring Plan [160]. Tax and Regulatory Considerations - The provision for income taxes for the nine months ended October 31, 2025, was $197 million, compared to $86 million in the prior year [169]. - The company is assessing the impact of the 2025 Tax Act, which is expected to reduce domestic cash tax outflows for the remainder of fiscal 2026 [171]. - The company is monitoring the OECD's Pillar Two rules, which may affect its effective tax rate and current tax obligations [172]. Acquisition and Financing Activities - The company completed the acquisition of Sana Labs AB for approximately $1.0 billion in cash in November 2025 [191]. - Cash used in financing activities was $1.8 billion for the nine months ended October 31, 2025, primarily due to share repurchases of $1.4 billion [181]. - The company has a remaining authorization of $4.4 billion for share repurchases as of October 31, 2025 [187]. - The company expects capital expenditures to be approximately $200 million in fiscal 2026, mainly for office facilities [180]. Market and Interest Rate Risks - A hypothetical increase or decrease of 100 basis points in interest rates would have resulted in an approximately $68 million market value reduction or increase in the investment portfolio as of October 31, 2025 [209]. - The company is exposed to foreign currency exchange risk due to global transactions, with significant exposures to the euro, British pound, Canadian dollar, and Australian dollar [205]. - The company enters into foreign currency derivative hedging transactions to mitigate foreign currency exchange risks [206]. - The Senior Notes have fixed annual interest rates, eliminating economic interest rate exposure on these debt obligations [210]. - Borrowings under the 2022 Credit Agreement are subject to variable interest rates, exposing the company to market risk from changes in underlying index rates [211]. - The investment portfolio is managed to preserve capital and meet liquidity needs, with no investments made for trading or speculative purposes [207]. - Fixed rate securities may have their market value adversely affected by rising interest rates, while floating rate securities may produce less income if rates fall [208]. - The company’s future investment income may fluctuate due to changes in interest rates, potentially leading to losses in principal if securities decline in market value [208]. - The fair values of the Senior Notes will increase as interest rates fall and decrease as interest rates rise, indicating exposure to interest rate risk [210].

Group 1 - The S&P 500 is experiencing significant gains during the Thanksgiving week, with most sectors benefiting from the rally [1][2] - Enterprise software and health care stocks are notably underperforming, missing out on the broader market gains [1][2] - Workday is identified as the largest laggard in the S&P 500, alongside other companies like Deere, Intuit, Salesforce, and ServiceNow, which are also trading lower [2] Group 2 - Workday and Deere reported disappointing quarterly results, contributing to their stock declines [2] - Salesforce, another key player in the enterprise software sector, is set to report its quarterly results in a week [2]

Market Overview - U.S. equities continued to rise, with major indexes extending a multi-day winning streak, driven by optimism for a Federal Reserve interest rate cut in December and dovish economic data releases [1][8] - The Nasdaq Composite led the gains, climbing 1%, while the S&P 500 and Dow Jones Industrial Average rose 0.9% each, marking their fourth consecutive day of gains [2][3] Economic Indicators - Expectations for a 25-basis-point rate cut by the Federal Reserve in December are high, with probabilities around 80-85%, supported by weaker-than-expected economic data [3][6] - Recent economic data included a decline in September retail sales, a softer Producer Price Index (PPI), decreased consumer confidence, and a drop in private payrolls [3] Sector Performance - Technology stocks were the primary drivers of the market rally, with the "Magnificent Seven" technology stocks significantly contributing to the overall market performance [4] - The Health Care Select Sector SPDR and Consumer Discretionary Select SPDR also performed well, gaining 2.3% and 2.1% respectively, while the housing sector benefited from a decline in Treasury yields [4] Corporate News and Stock Highlights - Apple shares rose about 1% as it is expected to surpass Samsung in global smartphone shipments for the first time in 14 years [7] - Dell Technologies surged 6-6.4% after announcing record orders for its AI servers, indicating strong demand in the AI infrastructure space [11] - Advanced Micro Devices (AMD) rose approximately 3.5%, while Broadcom gained about 3% [11] - Nvidia experienced a significant drop of 2.6-3.9% on Tuesday but rebounded slightly on Wednesday, facing increased competition in the AI chip market [11] - Urban Outfitters soared between 10% and 12.1% after reporting stronger-than-expected quarterly results, while Workday sank 9% despite positive earnings [11] - Petco surged 19.8% after raising its fiscal year earnings outlook, and Robinhood Markets jumped 10.7% following plans to launch a futures and derivatives exchange [11]