Workday shares jump after fiscal Q1 results top expectations

Shares of Workday Inc. surged in after-hours trading Thursday after the enterprise software company reported fiscal first-quarter results that exceeded analyst expectations, easing some investor concerns about the impact of artificial intelligence on its core business.

The company posted adjusted earnings of $2.66 per share for the quarter ended April 30, surpassing the consensus estimate of $2.51. Revenue grew 13% year-over-year to $2.54 billion, slightly above forecasts. Subscription revenue, a closely watched metric, increased 14% to $2.35 billion, with 40% of that growth attributed to net new business, according to Chief Commercial Officer Rob Enslin.

Following the report, Workday's stock jumped approximately 12% in extended trading, after having closed the regular session down 3.8% at $121.85. The stock has declined 43% this year amid broader investor anxiety that new AI technologies could erode demand for traditional software platforms.

The company highlighted accelerating adoption of its own AI offerings. The user base for its AI agents more than doubled from the prior quarter, with over 4,000 clients now deploying at least one. Its Recruiting Agent supported 14 million...