Workday Shares Jump 12% After Q1 Beat Eases AI Disruption Fears
Updated
Updated · TheStreet · May 22
Workday Shares Jump 12% After Q1 Beat Eases AI Disruption Fears
3 articles · Updated · TheStreet · May 22
Summary
Nearly 12% premarket, Workday shares surged after the enterprise software company topped first-quarter revenue and profit estimates.
Subscription revenue rose 14.3% to $2.35 billion, with net new business contributing 40% of that growth, helping calm worries that rivals such as Anthropic could quickly erode demand.
Still, Workday's total subscription backlog and 12-month subscription backlog both slipped from the prior quarter, even though they remained higher than a year earlier.
That softer sequential backlog trend comes as AI competitors push deeper into enterprise adoption, with Anthropic announcing its acquisition of applied AI services firm Fractional AI on Thursday.