Workday saw its stock price climb by as much as 14% in extended trading following a robust quarterly performance that exceeded market expectations. The human resources and finance software provider reported revenue of $2.54 billion for the fiscal first quarter ending April 30, surpassing the $2.52 billion consensus estimate. Net income also saw a significant boost, rising to $222 million, or 87 cents per share, compared to $68 million, or 25 cents per share, during the same period last year.

Central to this growth is the company’s aggressive integration of artificial intelligence. Workday reported that the number of clients utilizing its AI agents has more than doubled, with over 4,000 customers now actively using at least one agent. Annualized revenue from these agentic AI solutions is currently approaching the $500 million mark. Co-founder Aneel Bhusri, who recently returned to the CEO role, emphasized that the company’s AI strategy is a primary driver of its current momentum and future competitive advantage.

In light of these results, management has raised its full-year adjusted operating margin forecast to 30.5%, up from the previous projection of 30%. Despite a challenging year for the stock, which had faced pressure from investor concerns regarding the impact of generative AI on software growth, the company remains focused on operational efficiency. Bhusri noted that the company intends to keep headcount relatively flat for the 2027 fiscal year, leveraging internal AI tools and the company’s own software to maintain productivity and scale operations effectively.