Workday stock gains as software provider widens 2027 margin target [Video]

Workday shares soared 12% on Friday, one day after the finance and human resources software maker issued fiscal second-quarter results that exceeded analysts’ estimates and announced plans to further widen its adjusted operating margin through 2027.

Here is how the company did, compared to LSEG consensus:

• Earnings per share: $1.75 adjusted vs. $1.65 expected
• Revenue: $2.085 billion vs. $2.071 billion expected

Workday’s revenue was up about 17% year over year in the quarter ending July 31, according to a statement. Subscription revenue growth grew 17%. Net income, at $132 million, or 49 cents per share, increased from $79 million, or 30 cents per share, in the same quarter a year ago.

With respect to guidance, Workday is now looking for an adjusted operating margin of 25.25% in the 2025 fiscal year, compared to the 25% forecast it provided in May.

On a Thursday conference call with analysts, Zane Rowe, Workday’s finance chief, said he expects the company’s …