Trending Tickers: Workday, Nio, Ross Stores Lead Market Interest

Workday raised its annual subscription revenue forecast, but kept guidance unchanged, while investors were concerned about AI displacement. Nio unveiled its most affordable vehicle ever, a new SUV with a battery subscription plan. Ross Stores reported a quarterly profit beat and reinstated its earnings forecast, betting on demand for discounted apparel and accessories despite tariff costs.

Workday Reports Strong Q2 Earnings, Raises Annual Forecast

Workday, a leading provider of cloud-based software for finance and human resources, reported strong fiscal second-quarter results for the period ending July 31, 2025. The company's revenue increased by 13% year-over-year to $2.35 billion, slightly surpassing analyst expectations of $2.34 billion [1]. Workday's net income rose to $228 million, or 84 cents per share, up from $132 million, or 49 cents per share, in the same quarter last year [1].

The company's non-GAAP earnings per share of $2.21 comfortably beat Wall Street's target of $2.11 per share [1]. Workday's adjusted operating profit margin also improved significantly, reaching 29% compared to 24.8% in the year-ago period [1]. The company's AI integration and platform innovation were key drivers of this growth.

Workday's AI strategy and recent acquisitions aim to counter potential disruption in the cloud software industry. The company has been actively developing AI agents to automate complex business processes, particularly in human resources [1]. During the quarter, Workday launched new AI agents for extracting accounting details from documents and reporting absent days [1]. The company also made strategic moves to bolster its AI capabilities: it acquired Flowise, a visual, drag-and-drop builder for creating customized AI agents, and announced the acquisition of Paradox, a company specializing in conversational AI software for recruiting [1].

NIO Unveils Most Affordable Vehicle with Battery Subscription Plan

On August 21, 2025, NIO officially unveiled and opened pre-orders for its Premium Flagship SUV, the All-New ES8. The six- and seven-seater variants of the Executive Premium Edition are priced from RMB 416,800, or from RMB 308,800 with the battery subscription plan of NIO Battery-as-a-Service (BaaS) [2]. The Executive Signature Edition starts from RMB 456,800, or from RMB 348,800 with the BaaS plan [2]. The official launch of the All-New ES8 is in late September, with user deliveries starting upon launch [2].

Ross Stores Reports Quarterly Profit Beat and Reinstates Earnings Forecast

Ross Stores, a discount retailer, reported a quarterly profit beat and reinstated its earnings forecast for the year. The company's net income for the second quarter of fiscal 2025 was $153.5 million, up from $121.8 million in the same quarter last year [3]. Ross Stores attributed its strong performance to demand for discounted apparel and accessories, despite tariff costs.

Investor Concerns and Market Response

While Workday's financial results were positive, some investors and analysts have expressed concerns about the potential disruptive impact of AI on cloud software sales. However, Workday CEO Carl Eschenbach dismissed these worries, stating that the company is actively leveraging AI to enhance its offerings rather than viewing it as a threat [1].

For the current quarter, Workday provided guidance of $2.24 billion in subscription revenue and $180 million in professional services, implying a total revenue of $2.42 billion [1]. This forecast aligns with analysts' expectations but failed to exceed them, leading to a slight dip in Workday's stock price in after-hours trading [1]. The company raised its full-year forecast, targeting total revenue of $9.52 billion at the midpoint of its guidance range, representing 14.2% growth [1]. However, Workday's stock has underperformed the broader market year-to-date, down about 12% compared to the Nasdaq's 9% gain [1].

References:
[1] https://theoutpost.ai/news-story/workday-s-q2-earnings-beat-estimates-but-ai-concerns-and-sector-challenges-loom-19410/
[2] https://www.nio.com/news/20250821001