Workday Jumps 11% After Raising 2026 Margin Outlook to 30.5%

6 articles · Updated · CNBC · May 21

Workday shares rose as much as 11% after hours after the software maker beat quarterly estimates and lifted its full-year adjusted operating margin forecast to 30.5% from 30%.
First-quarter adjusted EPS reached $2.66 on $2.54 billion in revenue, topping LSEG estimates of $2.51 and $2.52 billion, while revenue grew 13% and net income climbed to $222 million from $68 million.
Second-quarter guidance also edged above expectations, with Workday projecting a 30% adjusted operating margin and $2.46 billion in subscription revenue, versus StreetAccount consensus of 30% and $2.45 billion.
AI adoption helped support the outlook: more than 4,000 customers now use at least one Workday agent, more than double the prior quarter, as co-founder Aneel Bhusri returned as CEO during the period.
The rebound follows a steep selloff—Workday had been down 43% in 2026 through Thursday's close as investors worried generative AI could weaken growth for major software companies.

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