Workday beats estimates for revenue and profit, stock jumps

Core Insights - Workday reported better-than-expected quarterly results, with shares rising over 7% in extended trading [1] - Revenue increased by 15% year over year, reaching $2.21 billion, while net income fell to$94 million, or 35 cents per share [1][5] - The previous year's results were positively impacted by a $1.1 billion release of valuation allowance related to deferred tax assets [2] Financial Performance - Workday's revenue for the quarter ending January 31 was$2.21 billion, exceeding the expected $2.18 billion [5] - Adjusted earnings per share were$1.92, surpassing the expected $1.78 [5] - The company anticipates a 28$2.05 billion in subscription revenue for the fiscal first quarter, higher than the analyst expectation of 26.7% [3] Future Outlook - For the fiscal year 2026, Workday projects an adjusted margin of 28% with $8.8 billion in subscription revenue, indicating a 14% growth [4] - The company is experiencing increased demand for artificial intelligence tools, which is expected to enhance its HR and finance solutions [2] - Workday's new president and chief commercial officer, Rob Enslin, was appointed during the quarter, indicating a strategic move to bolster leadership [3]