Workday Surges 3.06% on AI-Powered Growth and Strong Earnings Ranks 89th in $790M Trading Volume

On August 27, 2025, Workday (WDAY) rose 3.06%, with a trading volume of $790 million, ranking 89th in the stock market. The stock’s performance followed mixed analyst commentary and recent earnings updates.

Cantor Fitzgerald maintained an Overweight rating on Workday, citing improved Q2 results despite conservative full-year guidance. The firm highlighted strong 16.4% customer relationship payroll (cRPO) growth driven by AI feature adoption, but noted management’s cautious outlook for the second half. Analysts emphasized that while short-term uncertainties persist, Workday’s long-term potential remains compelling due to its AI integration and market positioning.

Workday’s Q2 earnings showed revenue growth of 13% to $2.35 billion, with adjusted EPS rising 26% to $2.21, surpassing estimates. The company announced the Paradox acquisition to enhance AI-driven hiring solutions and raised fiscal 2026 revenue guidance to $9.515 billion. CEO Carl Eschenbach downplayed concerns about AI disrupting seat-based SaaS models, stressing that Workday’s customer base continues to grow, albeit at a moderated pace due to prior over-hiring trends.

Despite macroeconomic headwinds in sectors like state and local government, Workday reported strong international growth, particularly in Europe and Asia-Pacific. The company’s cash reserves and profitability, coupled with a forward P/S ratio of 6.2 and P/E of 25, position it as a growth-at-a-reasonable-price option for investors. Analysts remain optimistic about Workday’s ability to leverage AI for sustained momentum.

Backtest results indicated no direct correlation between the provided news items and Workday’s stock movement. The unrelated updates on eyewear, health products, insider trading, and market trends did not influence Workday’s performance during the period.