Workday’s (WDAY) shares soared over 11% in after-hours trading on Thursday after the HR and finance software vendor reported first-quarter 2027 earnings that surpassed Wall Street’s expectations. Its total subscription revenue backlog hit roughly $27.3 billion, up by approximately 11% from a year ago.Meet Samuel – Your Personal Investing ProphetStart a conversation with TipRanks’ trusted, data-backed investment intelligence
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The rally came despite Workday reaffirming its previous below-consensus guidance for fiscal 2027. However, Aneel Bhusri, the company’s co-founder, CEO, and chair, noted that the results showed that “Workday is ready for this AI moment.”
‘Our AI Strategy Is Working’
During the three-month period that ended on April 30, Workday grew its total revenue by approximately 14% year-over-year to $2.54 billion, beating analysts’ estimates of $2.52 billion. Its earnings per share also came in ahead of expectations and about 19% higher compared to the year-ago quarter: $2.66 versus the Wall Street consensus of $2.23.
