Workday's subscription revenue grew 14% and earnings beat estimates, with management crediting part of the gain to growing adoption of its AI-agent products. Premarket trading was too thin to show how investors are responding.
Workday reported second-quarter subscription revenue of $2.471 billion, up 14% from a year earlier, with total revenue of $2.649 billion, up 13%. Earnings of $2.75 a share beat the $2.62 analysts expected, and GAAP profit of $632 million was nearly triple the $228 million reported a year earlier. Management attributed part of the beat to growing adoption of the company's AI-agent products.
What the market makes of that beat is harder to say than usual. Workday's stock closed Thursday's regular session, ahead of the earnings release, up 1.48% at $193.57. Premarket trading Friday was too thin to give a reliable read on how investors are reacting to the results.
What is clear is the underlying quarter: double-digit subscription growth, a profit beat, and a specific product driver, AI-agent adoption, that management is crediting for part of the gain. That combination is worth tracking through Workday's next several quarters, regardless of how shares move once the regular session opens.