Workday's Q3 Results Surpass Estimates, Stock Rises

Company raises annual subscription revenue forecast following strong performance attributed to AI innovation and international growth.

Workday's stock rose more than 6% after Q3 results surpassed Wall Street estimates, with adjusted earnings of $1.53 per share on $1.87 billion in revenue.
Workday raised its annual subscription revenue forecast and reported an 18.1% rise in subscription revenue to $1.69 billion.
The company's strong performance is attributed to AI innovation, strength in full platform deals, expanding partner ecosystem, and international growth.
Workday now expects full-year subscription revenue of $6.598 billion, up from its previous expectation of $6.570 billion to $6.590 billion.
Workday's Q4 outlook anticipates subscription revenue to be $6.598 billion with adjusted operating margins estimated to be 23.8%.