.August 23, 2024 01:02:00 PM

Workday Inc. (NASDAQ:WDAY) saw its shares jump over 11% after reporting strong second-quarter results. The company posted adjusted earnings per share of $1.75, beating expectations of $1.65, with revenue hitting $2.09 billion, slightly above the estimated $2.07 billion.

Workday is optimistic about its future, forecasting third-quarter subscription revenue of $1.955 billion and reaffirming its full-year fiscal 2025 subscription revenue guidance at $7.700 billion to $7.725 billion, a 17% increase year-over-year.

The company is focusing on margin expansion, with plans to reach a 30% operating margin by fiscal 2027 and slightly raising its fiscal 2025 operating margin guidance to 25.25%.

Workday’s subscription revenue backlog grew 16.1% to $6.80 billion, while the total subscription revenue backlog increased by 20.9% to $21.58 billion. Additionally, the company announced a new $1 billion share repurchase program, showing confidence in its long-term growth.