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Workday Lifts Margin Guidance After Q1 Beat, Stock Surges

Workday reported first-quarter results that exceeded expectations, lifting its full-year adjusted operating margin forecast to 31.5% from 30%. Revenue grew 13% in the quarter ended April 30, while net income jumped to $222 million, or 87 cents per share, compared with 25 cents a year earlier. The finance and human resources software maker guided for 30% adjusted operating margin and $2.46 billion in subscription revenue for the second quarter. Workday co-founder Aneel Bhusri returned as CEO during the period, replacing Carl Eschenbach. The company reported over 4,000 clients using its agents, more than double the previous quarter, with annualized revenue from agentic solutions approaching $500 million. Management maintained guidance for 12% to 13% full-year growth. Shares gained 5% following the announcement.