Workday CEO Carl Eschenbach spoke on January 23, 2025 at the Squawk Box of CNBC outside the World Economic Forum in Davos, Switzerland.
Gerry Miller | CNBC
Working DayManufacturers of HR and financial software reported better results than expected on Tuesday. Stocks account for more than 7% of expanded trading.
Here is how the company compares to the LSEG consensus:
- Earnings per share: $1.92 adjusted with expected $1.78
- income: $2.21 billion vs. $2.18 billion
Revenue rose 15% year-on-year based on the quarter ended on January 31 statement. Net income fell from the same period a year ago to $1.19 billion per share or $4.52 per share.
“The last year period benefited from a $1.1 billion release of valuation allowances related to U.S. federal and state tax deferred assets,” Workday said.
The company sees a greater demand for AI tools.
“In fact, AI is ahead and center in every conversation with customers, prospects and partners. They want to go beyond productivity growth,” CEO Carl Eschenbach said in a conference call with analysts. “They’re looking to go beyond productivity growth.” Still looking for ROIs that can help them bring growth back into the business.”
Eschenbach said the weekday expansion that was consistent with the previous quarter was about 30% of the expansion to attract at least one AI product.
In the quarter, Workday announced the employment UIPATH CEO Sealed Ensling As its new president and chief commercial officer. The same goes for working days explain It will use AI to summarize employee feedback in its Pearmon products.
The company called for subscription revenue to first-quarter fiscal revenue of 28% adjusted operating margin. Analysts surveyed by StreetAccount expect adjusted profit margins of 26.7% and revenues of $2.06 billion.
Workday now has an adjusted margin of 28% and subscription revenue of $8.8 billion in fiscal 2026, meaning a 14% increase. This is slightly higher than management’s forecast in November.
Workday stocks were flat year by year as of Tuesday’s end, while the S&P 500 rose 1%.
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watch: Workday CEO on the future of work: Will depend on human and digital labor
