Core Insights - Autodesk has shown strong performance post-earnings with a 23% growth in earnings, reporting $267 per share against estimates of $250, and an 18% increase in sales to $1.85 billion, surpassing the $1.8 billion estimate [2][3] - The company raised its fiscal year guidance, increasing EPS estimates by approximately 3% to a range of $10.25, up from previous estimates of $9 to $9.95, and sales estimates to $7.15 billion from $7.07 billion [3] - Workday, in contrast, has seen its stock decline despite reporting a 12.5% increase in sales to $2.43 billion, exceeding estimates of $2.41 billion, and a 23% year-over-year increase in earnings to $2.32 [5][6] - Analysts are cautious about Workday due to a slowdown in organic subscription growth, which increased only 14.7% compared to 14.9% in the previous quarter, leading to lowered price targets from some analysts [7][8] Company Performance - Autodesk's transition from a transaction-based model to a subscription-based model has been successful, contributing to its strong topline and bottom line performance [3] - Workday's earnings growth has outpaced revenue growth, but concerns about organic growth have led to a more cautious outlook from analysts [6][7] Market Context - Jobless claims are at seven-month lows, and JP Morgan is projecting a positive outlook for 2026, indicating a cautiously optimistic market sentiment [8][9]

Core Insights - Workday, Inc. reported quarterly earnings of $2.32 per share, exceeding the analyst estimate of $2.18, and quarterly revenue of $2.43 billion, surpassing the Street estimate of $2.42 billion [1][2] Financial Performance - Quarterly earnings per share: $2.32, beating the estimate of $2.18 [1] - Quarterly revenue: $2.43 billion, exceeding the estimate of $2.42 billion [1] Market Reaction - Workday shares increased by 3.1%, closing at $233.69 [2] Analyst Ratings and Price Targets - Bernstein analyst Mark Moerdler maintained an Outperform rating but lowered the price target from $304 to $298 [5] - Keybanc analyst Jason Celino maintained an Overweight rating and reduced the price target from $285 to $260 [5]

Core Insights - Workday, Inc. reported quarterly earnings of $2.32 per share, exceeding the analyst estimate of $2.18, and quarterly revenue of $2.43 billion, surpassing the Street estimate of $2.42 billion [1][2] Financial Performance - The earnings per share of $2.32 represents a positive surprise compared to the expected $2.18 [1] - Quarterly revenue of $2.43 billion also exceeded expectations, indicating strong financial performance [1] Market Reaction - Following the earnings announcement, Workday shares increased by 3.1%, closing at $233.69 [2] Analyst Ratings and Price Targets - Bernstein analyst Mark Moerdler maintained an Outperform rating on Workday but lowered the price target from $304 to $298 [5] - Keybanc analyst Jason Celino maintained an Overweight rating while reducing the price target from $285 to $260 [5]

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Market Overview - U.S. markets closed higher, with the Nasdaq up 0.67% to 23,025.59, S&P 500 advancing 0.9% to 6,765.88, and Dow Jones Industrial Average climbing 1.43% to 47,112.45 [1] Dell Technologies - Dell reported third-quarter revenue of $27.01 billion, slightly below estimates, while adjusted earnings rose to $2.59 per share, beating expectations [2] - Revenue grew 11% year-over-year, driven by a 37% increase in servers and networking to $10.1 billion, while storage and consumer segments declined [2] - The company highlighted record AI server orders of $12.3 billion for the quarter and raised its fourth-quarter revenue outlook to up to $32 billion, with full-year revenue projected at $111.2–$112.2 billion [3] Kohl's - Kohl's appointed interim chief Michael Bender as permanent CEO, marking its third leadership change in three years [4] - The company reported third-quarter net sales of $3.4 billion, down 2.8% year-over-year, with comparable sales falling 1.7% and EPS at $0.07 [5] - Kohl's raised its full-year outlook, noting a stronger cash flow of $124 million and a 5% reduction in inventory [5] Zscaler - Zscaler's stock rose 3.35% to $289.73, but dipped 7.99% to $267 in after-hours trading [6] - The company beat first-quarter expectations with revenue of $788.1 million and EPS of 96 cents, while deferred revenue rose 32% to $2.35 billion [6] Workday - Workday's stock increased by 3.11% to $233.69, but slipped nearly 6.2% to $219.25 in after-hours trading [7] - The company beat third-quarter estimates with revenue of $2.43 billion and EPS of $2.32, supported by strong demand in its subscription business [8] - Subscription revenue rose 14.6% to $2.24 billion, and the 12-month backlog grew 17.6% to $8.21 billion [8] Autodesk - Autodesk shares climbed 1.58% to $294.43, jumping 6.14% to $312.50 in extended trading [9] - The company reported third-quarter revenue up 18% to $1.85 billion and adjusted EPS rising to $2.67, both ahead of expectations [9] - Autodesk lifted full-year earnings guidance to $10.18–$10.25 per share and projected fourth-quarter revenue of up to $1.92 billion [10]

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Core Insights - Workday reported third-quarter subscription revenue that met Wall Street estimates, indicating a potential slowdown in demand, which led to a nearly 7% decline in its shares during extended trading [1] Company Summary - Workday's subscription revenue for the third quarter was in line with expectations, suggesting that the company is experiencing softer demand in the market [1] - The market reaction to the earnings report was negative, with shares dropping nearly 7% in after-hours trading, reflecting investor concerns about future growth prospects [1]

Core Insights - Workday reported quarterly earnings of $2.32 per share, exceeding the Zacks Consensus Estimate of $2.13 per share, and up from $1.89 per share a year ago, representing an earnings surprise of +8.92% [1] - The company achieved revenues of $2.43 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.70% and increasing from $2.16 billion year-over-year [2] Financial Performance - Over the last four quarters, Workday has consistently surpassed consensus EPS estimates [2] - The company has also topped consensus revenue estimates four times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $2.24 on revenues of $2.51 billion, and for the current fiscal year, it is $8.84 on revenues of $9.51 billion [7] Market Position - Workday shares have underperformed the market, losing about 12.2% since the beginning of the year, while the S&P 500 has gained 14% [3] - The Zacks Industry Rank places the Internet - Software sector in the top 31% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Future Outlook - The sustainability of Workday's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Workday was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Workday reported Q3 subscription revenue of $2.244 billion, reflecting a 15% increase year-over-year. Total revenue reached $2.432 billion, up 13% [19][20] - The 12-month subscription revenue backlog (CRPO) was $8.21 billion, increasing by 17.6% [20] - Non-GAAP operating income for Q3 was $692 million, with a non-GAAP operating margin of 28.5% [20] - Operating cash flow for Q3 was $588 million, representing a growth of 45% [20] - The company ended the quarter with $6.8 billion in cash and marketable securities [22] Business Line Data and Key Metrics Changes - In Human Capital Management (HCM), Workday added new customers including Sunnybrook Health Sciences Center and Magnum Ice Cream Company, with strong full-suite adoption [8] - The company saw that half of all net new global deals in Q3 included both HR and finance solutions [8] - Workday Go contributed to strong new customer growth, particularly in the medium enterprise segment [8] Market Data and Key Metrics Changes - U.S. revenue in Q3 totaled $1.825 billion, up 12%, while international revenue was $607 million, up 13% [19] - Healthcare became the sixth industry to exceed $1 billion in ARR, with significant wins in the sector [10] - The company reported strong performance across EMEA, APAC, and Japan, with notable wins in these regions [16] Company Strategy and Development Direction - Workday is focused on integrating AI into its platform, with over 75% of core customers using Workday Illuminate AI [9] - The company aims to make Workday the "new front door to work" by combining enterprise knowledge, AI agents, and HR and finance processes [14] - Workday is expanding its market presence, including new initiatives in the Middle East and India [92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and the strength of its business model, particularly in the face of potential economic challenges [30] - The company anticipates a subscription revenue growth of approximately 14% for FY26, with a target of 12%-15% CAGR through FY28 [24][25] - Management highlighted the importance of data quality, integrity, and security as key factors for enterprise adoption of AI solutions [32] Other Important Information - Workday announced the acquisition of Sana, an AI-native platform, and Pipedream, a low-code integration platform, to enhance its AI capabilities [15] - The company is accelerating its share repurchase program, with plans to repurchase an additional $3.6 billion through the end of FY27 [21] Q&A Session Summary Question: Feedback on venture-backed vibe-coding startups - Management noted that while some startups are experiencing a slowdown, Workday's established infrastructure and data quality continue to attract customers [30][32] Question: Mechanisms to maintain ACV growth amid layoffs - Management explained that they focus on selling additional solutions to existing customers and have protections in place for headcount reductions [36][39] Question: Early success with AI solutions - Management reported that AI solutions contributed 1.5 points of growth to ARR, with strong demand for AI products among new and existing customers [43][44] Question: Feedback on Paradox and Sana acquisitions - Management indicated strong early interest in both acquisitions, with Paradox already generating sales shortly after the acquisition [50][52] Question: Go-to-market strategy for Paradox - Management confirmed that Paradox can be sold independently of Workday's platform, allowing for broader market penetration [58] Question: Confidence in DIA go-live milestones - Management expressed high confidence in meeting DIA contract requirements, which are expected to contribute $15 million in Q4 [68][69] Question: International growth rates - Management acknowledged that international growth rates are comparable to U.S. growth, with a strong pipeline building in international markets [99]

Financial Data and Key Metrics Changes - Workday reported Q3 subscription revenue of $2.244 billion, reflecting a 15% increase year-over-year. Total revenue reached $2.432 billion, up 13% [19] - Non-GAAP operating margin for Q3 was 28.5%, with non-GAAP operating income of $692 million [20] - The 12-month subscription revenue backlog (CRPO) was $8.21 billion, increasing by 17.6% [19] - Total subscription revenue backlog at the end of the quarter was $25.96 billion, up 17% [20] - Operating cash flow for Q3 was $588 million, representing a growth of 45% [20] Business Line Data and Key Metrics Changes - In Human Capital Management (HCM), Workday added new customers including Sunnybrook Health Sciences Center and Fuji Electric, with strong full-suite adoption [8] - AI products contributed over 1.5 points of Annual Recurring Revenue (ARR) growth this quarter, with more than 75% of core customers using Workday Illuminate AI [9] - Workday Go is driving strong new customer growth, particularly in the medium enterprise segment, with a major expansion announced [8] Market Data and Key Metrics Changes - U.S. revenue in Q3 totaled $1.825 billion, up 12%, while international revenue was $607 million, up 13% [19] - Healthcare became the sixth industry to exceed $1 billion in ARR, with significant wins in the sector [10] - The company saw strong performance across EMEA, APAC, and Japan, with notable wins in these regions [16] Company Strategy and Development Direction - Workday aims to unify HR and Finance on one intelligent platform, leveraging AI to help organizations adapt quickly and make better decisions [7] - The company is focused on increasing AI talent and entering new markets, including the Middle East and India [20] - Workday is committed to driving efficiencies while scaling the business globally, with a focus on targeted investments for long-term growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of the business heading into Q4 and FY27, citing strong customer engagement and ROI from Workday solutions [30] - The company is optimistic about AI-driven growth investments and expects to achieve a subscription revenue CAGR of 12%-15% through FY28 [24] - Management acknowledged some impacts from fiscal funding in certain sectors but emphasized strong execution across the portfolio [23] Other Important Information - Workday closed the acquisition of Paradox, which contributed to CRPO growth and was not included in backlog guidance [20] - The company plans to repurchase an additional $3.6 billion in shares through the end of FY27, leading to a total of $5 billion in repurchases [21] Q&A Session Summary Question: Feedback on venture-backed vibe-coding startups - Management noted that while there is interest in point solutions, customers are returning to trusted vendors like Workday due to data quality and security concerns [31] Question: Mechanisms to maintain ACV growth amid layoffs - Management highlighted that they are focused on selling back into their customer base with new solutions, which helps offset any potential impacts from headcount reductions [36] Question: Early success with AI solutions - Management reported that AI solutions are adding significant growth to ARR, with 75% of new sales including an AI solution [43] Question: Feedback on Paradox and Sana acquisitions - Early feedback from customers has been very positive, with strong demand for both acquisitions and their integration into Workday's offerings [51] Question: Go-to-market strategy for Paradox - Workday plans to sell Paradox not only to existing customers but also to competitors' environments, expanding its market reach [59] Question: Confidence in DIA go-live milestones - Management expressed high confidence in meeting DIA contract requirements, which are expected to contribute significantly to Q4 revenue [68]