Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contract management, build and execute sourcing events, such as requests for proposals, and manage indirect spend; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; Workday Extend for customers and their developers to build custom applications. The company serves the professional and business services, financial services, healthcare, manufacturing, media, education, government, technology, media, retail, and hospitality industries. It sells its solutions through its direct sales organization. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.
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Workday Q2 2027 Earnings Preview: EPS and Revenue Estimates
Workday is scheduled to announce its Q2 earnings results on Thursday, August 27th, after market close. The consensus EPS estimate is $2.61, up 18.1% year-over-year, and the consensus revenue estimate is $2.64 billion, up 12.3% year-over-year. Over the last two years, Workday has beaten both EPS and revenue estimates 100% of the time. In the last three months, EPS estimates have seen 19 upward revisions and 13 downward, while revenue estimates have seen 27 upward and 2 downward. Recent analysis from contributors suggests the momentum is behind the company, but it needs to execute.
Intuit, Zoom, Kohl's Lead Premarket Declines; SolarEdge, Semtech Rise
Intuit shares plunged 11% in premarket trading after the financial technology platform issued fiscal 2027 revenue guidance of $23.279 billion to $23.512 billion, below the $23.7 billion analysts expected, though its fiscal fourth-quarter earnings and revenue beat estimates. The disappointing outlook dragged other software stocks lower, with the iShares Expanded Tech-Software ETF down over 1%, ServiceNow off more than 2.5%, and Workday and Salesforce each down 2%. Zoom Communications fell 7% after its third-quarter earnings per share guidance of $1.46 to $1.48 came in short of the $1.50 FactSet consensus. Kohl's declined 5% after reporting a 0.9% drop in second-quarter comparable sales, worse than the 0.6% decline expected, but the retailer raised its full-year outlook, partly due to $150 million in tariff refunds, and restarted share buybacks of up to $100 million in 2026. On the upside, J.M. Smucker climbed 5.6% after fiscal first-quarter revenue of $2.22 billion topped the LSEG consensus of $2.13 billion, SolarEdge jumped nearly 7% following a UBS upgrade to buy on a new FCC policy, and Semtech rose more than 5% after beating earnings estimates with adjusted EPS of 71 cents versus 61 cents expected. Box gained over 2% on revenue beat, while Boston Scientific fell more than 3% after disclosing a cybersecurity incident causing product disruptions, and SAP dropped almost 4% after a UBS downgrade to neutral on slow agentic AI delivery.
Workday Seen as Strong Pre-Earnings Bet Before August 27
Workday enters its August 27 earnings report with a 91% beat probability, four straight EPS beats, and Silver Lake buyout talks anchoring the stock. The company guided Q2 fiscal 2027 subscription revenue to approximately $2.455 billion, growth of 13%, and CRPO growth of 13.5% to 14.5%, while new ACV from agentic AI products grew more than 200% year over year, approaching $500 million in ARR. A forward P/E of 18 and PEG of 0.75 reframe Workday as reasonably priced, with free cash flow yield at 7.00% and fiscal 2027 free cash flow guided to $3.180 billion, growth of 15%. Workday's 14% subscription revenue growth outpaces Salesforce, while 97% gross revenue retention and a pure cloud model give it an edge over Oracle. Shares are up 39.77% over the past month, and the average one-week post-earnings move is +7.83%.
Nvidia earnings and software results headline week of August 24th
Nvidia's second-quarter earnings take center stage on Wednesday, August 24th, with Wall Street analysts at Stifel and Oppenheimer expecting the AI chip giant to beat estimates and raise its outlook. Investors will also watch a packed slate of software earnings from Salesforce, CrowdStrike, Workday, Zoom, and Intuit, with Salesforce seen as a key test of corporate software spending and whether AI investment is translating into stronger growth. Attention then turns to Jackson Hole on Friday, where Fed Chair Kevin Warsh is expected to deliver remarks, and markets will listen for clues on the path for interest rates and how the Fed plans to tackle inflation.
Workday Launches AI Research Unit to Boost Enterprise AI
Workday has launched Workday AI Research, a dedicated technical research team focused on developing reliable, trustworthy and efficient enterprise artificial intelligence. The initiative aims to address key challenges associated with deploying AI agents across business operations, including memory, accuracy, privacy, explainability and governance. Workday's researchers are focusing on areas such as AI memory, multi-agent collaboration, recommendation systems, AI training and resource optimization, and the company has introduced an AI Research PhD Fellowship offering $50,000 in annual funding. Recent research found that a selective AI memory system improved precision by 12%, overall quality by about 8% and speed by around 31%, while multiple specialized AI agents increased accuracy by 5.8%. Workday faces competition from Oracle and ADP, which are also expanding enterprise AI capabilities through Oracle Cloud Infrastructure and ADP Assist.
Silver Lake's Workday buyout talks could lift software stocks
Analysts and investors viewed U.S. private equity giant Silver Lake's talks to acquire Workday, a provider of human resources and financial management software, as a sign of confidence in the software industry's growth prospects. After Reuters reported on the 13th that discussions were progressing, Workday shares surged about 18 percent that day, pushing its market capitalization above 51 billion dollars. Brian Mulberry of Zacks Investment Research noted that if Silver Lake takes Workday private at a substantial premium, it would be one of the strongest pieces of evidence supporting the view that traditional enterprise software has been overly pessimistically assessed because of AI. Morgan Stanley's analyst team said that if the acquisition goes through, it would affirm the view that Workday has strong competitive advantages and significant growth opportunities in automating back-office operations, and could help restore confidence among financial sponsors in software investments and potentially trigger additional buyout proposals. In European markets on the 14th, SAP led software stocks higher, while in the previous day's U.S. session, Salesforce, Adobe, and ServiceNow rose between 1.9 and 4.5 percent.
Workday's $51 billion takeover talks could reset the software trade
Workday shares jumped about 18% after Silver Lake was reported to be considering an acquisition of the human-resources and financial-management software company, lifting its market capitalization to more than $51 billion. The company generated $9.55 billion of revenue in fiscal 2026, up 13.1%, with subscription revenue rising 14.5% to $8.83 billion, and first-quarter fiscal 2027 revenue climbed another 13.5% to $2.54 billion. A hypothetical $227-a-share offer would value Workday at nearly $53.8 billion, potentially ranking among the biggest software takeovers ever, though talks could still break down and no deal has been announced. The report also lifted other software stocks, with SAP, Salesforce, Adobe, and ServiceNow gaining between 1.9% and 4.5%, and the S&P 500 Software & Services index up almost 25% quarter-to-date. Morgan Stanley analysts said a prospective acquisition would feed into the notion that Workday has a strong moat and a big chance to automate back-office tasks over time.
Workday Surges on Report of Potential $43 Billion Silver Lake Buyout
Workday shares jumped about 18% on August 13 after Reuters reported that private equity firm Silver Lake is in talks to acquire the human-resources and finance software maker in a deal that could value the company at around $43 billion. The stock rose as much as 26% to $220.50 intraday before being halted several times for volatility, marking its best trading day since 2016. Negotiations have been ongoing in recent months but no transaction is guaranteed, and Silver Lake may seek other investors to help finance what would be one of its largest technology investments to date. Workday has been under pressure in 2026, trading more than 40% below its 2024 peak amid concerns that AI could erode demand for traditional enterprise software, and co-founder Aneel Bhusri returned as CEO in February to guide the company through the AI transition. Short interest of 12.74% and a decline in hedge fund ownership from 70 funds in the fourth quarter of last year to 63 in the first quarter of this year reflect continued skepticism about a deal closing.
Workday, Diversified Energy, Aurora Cannabis lead week's key deals
Several major acquisition deals were reported across sectors this week. Workday soared 19% on a report that private equity firm Silver Lake is in talks to buy the software company. Diversified Energy is in advanced talks to acquire Elliott Investment Management-backed oil and gas company Birch Resources for more than $1.7 billion in cash. EQT Infrastructure offered to buy Cleanaway Waste Management in a deal that values the Australian listed firm at about A$6.9 billion, or $4.9 billion. H.B. Fuller said it received an unsolicited proposal from Ancora Holdings to buy its building adhesives solutions business for $1.1 billion to $1.2 billion in cash. Aurora Cannabis soared 21% after Curaleaf Holdings said it plans to make a $4 per share takeover bid, with Curaleaf rising 6.7%. H&R Real Estate Investment Trust agreed to be acquired by GO Residential Real Estate Investment Trust and a consortium including Blackstone, Crestpoint, PSP Investments and a company controlled by members of the family of H&R CEO Tom Hofstedter in a deal valued at about C$6.7 billion, including assumed debt. Israeli AI startup Decart is in advanced talks to be sold to a major tech firm for $6 billion to $7 billion. Jazz Pharmaceuticals announced it will acquire privately held Actio Biosciences for $820 million upfront and up to $500 million in potential milestones.
Intel prices $20B stock offering; Super Micro, Workday surge
Intel priced an upsized $20 billion public stock offering this week, selling over 210 million shares at $95 each and expecting net proceeds of about $19.7 billion to fund AI-related growth opportunities. Super Micro Computer closed 19% higher on Wednesday after issuing fiscal first-quarter guidance well above Wall Street forecasts, while Lumentum rose 14% on strong fiscal fourth-quarter results and outlook. Workday jumped nearly 18% on Thursday after Reuters reported private equity firm Silver Lake is in talks to buy the software company, with Needham analysts estimating a potential takeover price of $240 to $250 per share. NVIDIA confirmed it is working with a consortium of lenders including Apollo Global Management, Blackstone, BlackRock, Brookfield, Goldman Sachs, and KKR to raise $500 billion for AI infrastructure, signing a memorandum of understanding to establish first-of-their-kind compute financing platforms at global scale. AMD filed a mixed shelf debt offering that could raise up to $5 billion in four tranches, and Argus upgraded Sandisk to Buy from Hold with a $1,600 price target.
Workday could be acquired by private equity firm Silver Lake, with analysts suggesting a takeover value of roughly $240 to $250 per share. BNP Paribas analyst Stefan Slowinski said Workday's 98% renewal rates, seat-based model, data moat, and potential for increased margins make it attractive for an acquirer, and the company is targeting the Rule of 35 metric by fiscal 2028, implying operating margins of around 23%. RBC Capital Markets analyst Rishi Jaluria said a deal could happen but is more likely a management-led buyout, given co-founder and CEO Aneel Bhusri and co-founder and CEO Emeritus David Duffield hold around 70% of the voting power. KeyBanc analyst Jason Celino said the deal makes sense, especially since Bhusri only returned as CEO earlier this year and was never thought to be a long-term solution.
Brown Advisory Exits Workday Stake After Management Changes Break Investment Thesis
Brown Advisory's Global Leaders Strategy sold its position in Workday during May after an eight-month holding period, citing a broken investment thesis. The exit was triggered by the CEO's departure and the reappointment of co-founder Aneel Bhusri, which led to an immediate moderation of margin targets and reduced discipline around stock-based compensation. These changes, combined with the need to ramp up investments amid increased competition from AI-driven challengers, prompted downward revisions to growth and margin estimates that no longer supported the fund's base-case IRR targets. The proceeds were reallocated to build a new position in Siemens Energy.
Stocks Waver as Mixed Earnings and Chipmaker Rebound Offset Software Weakness
U.S. stocks were mixed on Thursday as a rebound in chipmakers and stronger-than-expected economic data helped offset a sell-off in software shares following disappointing earnings. The S&P 500 edged up 0.07%, the Dow fell 0.38%, and the Nasdaq 100 added 0.26%. Datadog tumbled over 14% after reporting second-quarter adjusted gross margin below consensus, dragging down other software names including Salesforce, Atlassian, and Workday. AppLovin sank 19% on a revenue miss, while memory chipmakers Western Digital and SanDisk fell sharply after SanDisk forecast first-quarter revenue of $10.30 billion to $10.80 billion, below the $11.16 billion consensus. Limiting losses, ARM Holdings rose more than 5% and ASML, ON Semiconductor, and Marvel Technology gained over 2%, while Paycom Software surged 22% after raising its full-year revenue outlook to $2.20 billion to $2.21 billion, above estimates. Weekly jobless claims rose by 1,000 to 199,000, better than the 205,000 expected, and second-quarter nonfarm productivity increased 1.4%, exceeding the 0.6% forecast. A Financial Times report that Fed Chair Warsh is willing to raise rates in September if inflation firms weighed on sentiment, while crude oil rose over 1% after Yemen's Houthi rebels said they targeted a Saudi oil tanker in the Gulf of Aden.
Insperity Rebounds on Earnings but Valuation Narratives Split Between Overvalued and Deeply Undervalued
Insperity reported second quarter 2026 earnings with modest sales growth, a return to quarterly profitability, fresh guidance, and new capital actions including share repurchases and a shelf registration. The stock has climbed strongly this year, posting a 77.39% three-month share price return and a 31.05% year-to-date return, though the five-year total shareholder return remains down 40.51%. The most followed valuation narrative pegs fair value at $43.75, labeling the stock overvalued at the latest close of $50.61, while a discounted cash flow model suggests a fair value of $166.67, implying deep undervaluation. The upcoming launch of Insperity HRScale, a joint solution with Workday targeting the mid-market segment, is expected to support higher revenue growth and improved operating leverage.
Stocks Mixed as Dow Rises on Earnings While Nasdaq Falls on Chipmaker Rout
U.S. stock indexes were mixed on Tuesday, with the Dow Jones Industrial Average climbing to a 1.5-week high while the Nasdaq 100 fell to a 2.75-month low. The Dow rose 0.738% and the S&P 500 edged up 0.05%, but the Nasdaq 100 dropped 1.12% as a deepening rout in chipmakers and AI-infrastructure stocks weighed on the market. Better-than-expected earnings from Coca-Cola and Sherwin-Williams provided support, while an unexpected decline in the Conference Board's July consumer confidence index to 90.8 added to cautious sentiment. The iShares Semiconductor ETF fell more than 5% to a 2.5-month low, with Sandisk down over 14% and Western Digital down over 13%. In contrast, software stocks gained, with Workday up over 7% and Thomson Reuters up over 6%.
Stocks Fall from Early Highs as Chipmakers Retreat
Stock indexes gave up early gains and are trading mixed, with the Nasdaq 100 falling to a 2.5-month low. The S&P 500 is up 0.11%, the Dow Jones Industrial Average is up 0.54%, and the Nasdaq 100 is down 0.46%. Weakness in chipmakers is weighing on the broader market as investors rotate out of semiconductor and AI-infrastructure stocks and into beaten-down sectors such as software. The iShares Semiconductor ETF is down more than 3%, with Sandisk down more than 11% and Advanced Micro Devices and Western Digital down more than 6%. Energy producers are also sliding amid a more than 6% decline in crude oil prices after the US and Iran held off attacks for a third straight day, easing geopolitical risks. Software stocks are rallying, with Workday up more than 8% and Atlassian up more than 7%, while airline and cruise line operators are climbing on the drop in oil prices.
ServiceNow stock jumps on strong revenue as company shrugs off AI disruption fears
ServiceNow shares gained 3% in early trading on Thursday after the company reported quarterly subscription revenue and bookings that topped analyst expectations. Subscription revenue climbed roughly 25% year over year to $3.88 billion last quarter, while current remaining performance obligations, a key metric of near-term bookings, rose 21% to $13.2 billion. Management highlighted that demand for the company's AI products continues to outperform expectations, citing broad customer demand, solid execution, and operating leverage. The results reinforced investor optimism that ServiceNow's artificial intelligence offerings are helping drive growth, even as the software industry faces scrutiny over AI disruption concerns. Shares of software peers including Salesforce, Snowflake, Adobe, and Workday also rose on Thursday, and the Tech-Software Sector ETF edged higher.
Stock Indexes Mixed Ahead of Alphabet Earnings as Energy Gains Offset Tech Weakness
U.S. stock indexes were mixed on Wednesday, with the S&P 500 down 0.09%, the Dow Jones Industrial Average up 0.10%, and the Nasdaq 100 down 0.29%, as markets awaited Alphabet's earnings after the close for signs that its artificial intelligence investments are generating returns. Alphabet plans to more than double capital spending from 2025 to as much as $190 billion this year. Energy producers and service providers rose alongside a more than 2% jump in WTI crude oil to a six-week high, while software and cybersecurity stocks declined, with Atlassian and Workday each falling more than 5%. The 10-year Treasury yield climbed to a two-month high of 4.66% amid rising oil prices and supply pressures from a $13 billion 20-year bond auction. Overseas, the Euro Stoxx 50 gained 0.55% to a two-week high, while Japan's Nikkei 225 slipped 0.18%.
Chipmaker Rebound Lifts S&P 500 and Nasdaq as Earnings Season Begins
U.S. stocks rose on Monday, with the S&P 500 up 0.64%, the Dow Jones Industrial Average up 0.47%, and the Nasdaq 100 up 1.58%, as a rebound in chipmakers and AI-infrastructure stocks gathered pace. The iShares Semiconductor ETF gained more than 4%, with Teradyne and Western Digital up more than 11%, and Micron Technology and Seagate Technology up more than 9%. The rally comes ahead of megacap technology earnings this week, starting with Alphabet and Tesla on Wednesday, while Bloomberg Intelligence forecasts suggest second-quarter earnings may increase by 23%, with AI infrastructure stocks contributing nearly 60% of the S&P 500's earnings-per-share growth. Software stocks fell after Morgan Stanley downgraded Adobe, Intuit, and Workday, and rising crude oil prices pushed the 10-year Treasury yield to a two-month high of 4.64%. WTI crude oil rose more than 2% to a five-week high as the U.S. and Iran exchanged strikes for a tenth consecutive day, and Houthi rebels threatened a maritime blockade on Saudi Arabia.
Stocks Gain as Chipmakers Rebound Ahead of Megacap Earnings
U.S. stock indexes climbed on Tuesday as a rebound in chipmakers and AI-infrastructure stocks gathered pace. The S&P 500 rose 0.38%, the Dow Jones Industrial Average added 0.17%, and the Nasdaq 100 jumped 1.26%. Chipmakers rallied after a recent selloff cheapened valuations, drawing dip buyers ahead of megacap technology earnings this week, starting with Alphabet on Wednesday. Software stocks were weak after Morgan Stanley downgraded several companies in the sector, including Adobe, Intuit, and Workday. Hasbro surged more than 10% after reporting better-than-expected quarterly revenue and raising its full-year adjusted Ebitda forecast, while 3M gained over 8% on stronger earnings and an improved outlook. Danaher fell more than 13% after issuing a weaker revenue growth forecast, and MSCI dropped over 10% on an earnings miss and higher expense guidance.
Workday Rising 2026 to Showcase Agentic HR and Finance in Las Vegas
Workday announced that its annual customer conference, Workday Rising 2026, will take place October 12-15 in Las Vegas, focusing on agentic HR and agentic finance. The event is expected to draw over 30,000 in-person and digital attendees and will feature more than 400 sessions, including product demos, customer showcases, and hands-on labs. Keynotes will be delivered by Workday Co-Founder, CEO, and Chair Aneel Bhusri, President of Product and Technology Gerrit Kazmaier, and Chief AI Officer Joel Hellermark, who will discuss how AI agents can operate safely within trusted business processes. Award-winning artist Kelly Clarkson will headline the Customer Appreciation Party. The conference aims to provide practical ways for HR, finance, and IT professionals to deploy AI agents in their organizations.
RBC's Jaluria flags two big misconceptions about AI's long-term impact on software
RBC Capital Markets managing director Rishi Jaluria says there are two big misconceptions about AI's long-term impact on the software sector. First, investors often view AI and software as independent forces, but they are increasingly intertwined, with tools like Claude Code and OpenAI Codex representing a new form of software. Second, the idea that AI will replace enterprise software from companies like Salesforce, Workday, and Microsoft is misguided, as building in-house alternatives would likely cost more and yield worse products on a total-cost-of-ownership basis. Jaluria notes that as this realization spreads, sentiment on application-software names could become less dire.
IBM loses $70 billion in market value after AI-driven earnings miss
IBM stunned investors after preannouncing second-quarter results that fell far short of expectations, sending shares down more than 25% and wiping out an estimated $70 billion in market value — a 58-year record loss for the company. CEO Arvind Krishna said customers shifted quarterly technology budgets toward servers, storage, and memory purchases to support AI infrastructure, acknowledging that the company did not adapt and move quickly enough. The selloff highlights a broader shift across corporate America, where businesses are reallocating funds from legacy systems to AI infrastructure and software, pressuring other enterprise technology names such as Salesforce, Adobe, ServiceNow, and Workday.
StockStory Flags Vertex as a Nasdaq 100 Stock to Watch, Questions Workday and Mondelez
StockStory highlights Vertex Pharmaceuticals as a Nasdaq 100 stock with huge potential while expressing caution on Workday and Mondelez. Vertex, with a market cap of $121.1 billion, posted 13.8% annual revenue growth over five years and a strong free cash flow margin of 24.7%. Workday, valued at $35.03 billion, faces slowing demand with estimated sales growth of 10.9% and trades at 3.3x forward price-to-sales. Mondelez, at a $75.38 billion market cap, saw earnings per share fall 2% annually over three years and has an estimated sales growth of just 2.4%, trading at 18.4x forward P/E.
Meta faces first-of-its-kind lawsuit alleging AI targeted disabled workers in layoffs
Meta Platforms is facing a first-of-its-kind lawsuit accusing the company of using AI-powered software to target employees with disabilities or on medical leave for layoffs. The lawsuit, filed in Oakland, California federal court this month by 26 anonymous plaintiffs from six states, alleges Meta relied on AI-assisted systems to score and rank employees on productivity when it cut thousands of jobs this year, harming those who missed work due to illness or family care. The plaintiffs, notified in May that their jobs would be eliminated on July 22, claim the company violated federal and state anti-discrimination laws and are seeking a preliminary ruling to block the layoffs pending private arbitration. Meta denied the allegations, stating that workforce management and organizational decisions were made by people, not AI. The case highlights growing legal scrutiny over the use of AI in employment decisions, following a recent ruling allowing a class-action lawsuit against Workday over alleged discriminatory AI screening software.
Software stocks tumble as high memory prices cannibalize enterprise tech capex
Software stocks fell sharply Tuesday after IBM's disappointing preliminary results signaled a broader shift in enterprise spending. Accenture dropped 8%, ServiceNow fell 6%, and Workday and Salesforce each declined 5%. IBM reported that clients are reallocating budgets away from software and toward hardware like servers and memory, driven by a global memory supply shortage and soaring prices fueled by AI data center demand. The company's revenue of $17.2 billion missed the $17.86 billion consensus, with non-GAAP EPS of $2.93 below the $3.02 estimate, as weakness in its Z-series mainframe division and cybersecurity distractions further pressured results. Investors fear the trend of delaying software purchases to secure costly hardware could lead to a near-term revenue slowdown across the software-as-a-service and consulting sector.
Enterprise Software Stocks Rally as Investors Rotate Out of Chips
Salesforce, Workday, and PagerDuty all jumped over 4% in afternoon trading as investors rotated into oversold enterprise software names amid profit-taking in semiconductor stocks. ServiceNow surged 4.3% and Salesforce climbed 2.4% while the Nasdaq retreated and Micron fell 4%. The shift reflects a broader rotation from AI infrastructure to application-layer software, fueled by evidence that incumbents like ServiceNow and Salesforce are successfully monetizing AI through premium add-ons rather than facing cannibalization. PagerDuty, which is down 12.5% year-to-date and trading 36.9% below its 52-week high, was among the beneficiaries of the renewed appetite for beaten-down software stocks.
Palantir Technologies led a slide in enterprise software stocks Wednesday as the broader market weakened after the U.S.-Iran truce broke down. Palantir fell 4%, reversing part of its late-June momentum tied to a Nvidia deal to run AI and Nemotron models in sovereign environments for U.S. government and critical infrastructure customers. Salesforce dropped 2% even after its Missionforce unit won a U.S. Air Force contract tied to modernizing a $13.5 billion vehicle fleet. The selling spread across the group, with Workday falling 4%, SAP losing 3.4%, Oracle slipping 2%, and ServiceNow dropping 3.6%. Cybersecurity names also weakened, as Palo Alto Networks fell 4.7%, while CrowdStrike and Tenable each fell 3%.
The S&P 500 fell 0.67%, the Dow dropped 0.38%, and the Nasdaq 100 slid 2.14% to a one-week low, driven by a sharp selloff in semiconductor stocks after Samsung Electronics' blowout earnings failed to impress. Samsung, the world's largest memory maker by market value, closed down more than 8% in South Korea even after profit surged 19-fold, as investors question whether massive AI spending can be sustained. The iShares Semiconductor ETF fell to a four-week low and dropped more than 6%, with Astera Labs and Sandisk down more than 11%, Western Digital down more than 10%, and Applied Materials, Intel, Lam Research, and Marvel Technology down more than 9%. A jump in crude oil prices following attacks on shipping near the Strait of Hormuz also weighed on stocks, with WTI crude up more than 2%, boosting inflation expectations and pushing the 10-year Treasury yield to a three-and-a-half-week high of 4.52%. The US May trade deficit widened to $77.6 billion, the largest in 14 months, adding to negative sentiment, while New York Fed President John Williams said inflation is still quite high. Strength in software stocks provided some support, with Thomson Reuters up more than 5% and Workday and Atlassian up more than 4%.
Workday Is an Attractive AI Stock to Invest In, Analysts Say
Workday is among BlackRock's 30 most important AI stocks, with the asset manager holding approximately 20.08 million shares, or slightly over 12.8% of the outstanding shares, as of March 31, 2026, worth around $2.5 billion. The stock has declined more than 43% year to date amid the 'AI is the death of software' narrative, but some analysts see it as overly penalized. On June 24, Monness, Crespi, Hardt & Co. upgraded Workday to Buy from Neutral with a $150 price target, citing a depressed valuation, strong margins, and robust cash flow generation. The stock trades at a forward P/E of about 12, a substantial discount to the broader market, and the one-year median price target of $165 implies over 33% potential upside, though just over half of analysts rate it a Buy.
U.S. stock indexes closed lower on Wednesday, with the S&P 500 falling from a one-week high and the Dow Jones Industrials retreating from a new all-time high, as a selloff in chipmakers and AI-infrastructure stocks weighed on the broader market. The iShares Semiconductor ETF closed down more than 6%, with SanDisk down more than 10%, Lam Research, Applied Materials, Micron Technology, and Intel down more than 9%, and Advanced Micro Devices down more than 7%. Weaker-than-expected U.S. economic data also pressured stocks, as the June ADP employment change rose by 98,000, below expectations of 120,000, and the June ISM manufacturing index fell to 53.3, missing the 53.9 forecast. Losses were limited by strength in Magnificent Seven technology stocks, with Meta Platforms up more than 8% after announcing plans for a cloud infrastructure business, and a rally in software companies including Palantir Technologies up more than 7% and Atlassian, ServiceNow, and Workday up more than 6%.
Oracle Expands Fusion Agentic Applications for Supply Chain and Manufacturing
Oracle announced four new Fusion Agentic Applications for Oracle Fusion Cloud Supply Chain and Manufacturing on June 29, 2026, embedding agentic intelligence into inventory planning, supplier qualification, production readiness, and Kanban administration. The launch also includes multi-echelon inventory optimization and an Inventory Optimization Advisor Agent to help planners balance inventory availability with carrying costs. Oracle Cloud Applications revenues increased 10% year over year to $4.1 billion in the fourth quarter of fiscal 2026, with SaaS deferred revenues growing 16% and more than 300 Fusion customers going live. The company expects cloud revenues to grow 58-64% in the first quarter of fiscal 2027. The move comes as Oracle faces intensifying competition from SAP and Workday, both of which are deepening agentic capabilities within their platforms.
Workday files US$3.19 billion shelf for 27 million Class A shares tied to ESOP offering
Workday has filed a US$3.19 billion shelf registration covering 27,000,000 Class A shares for an employee stock ownership plan-related offering. The filing provides flexibility around employee share issuance and comes alongside an analyst upgrade that highlighted strong demand for Workday's expanding AI-enhanced product suite and cash generation. The company was also reshuffled across several Russell indexes in late June 2026, moving out of the Russell Top 200 into midcap and multiple value and growth benchmarks. These index moves and the shelf registration do not materially change Workday's near-term fundamentals, which remain tied to broader adoption of its AI-powered offerings and execution on margin improvement.
Workday expands solutions portfolio as customer demand spreads across industries
Workday has expanded its solutions portfolio to deepen coverage of human capital and financial management tools, seeing strong customer demand and broader adoption across industries including education, public sector, and financial services. The expansion supports renewals and growth opportunities within Workday's existing customer base. The company's push into these sectors aims to deepen its role with existing clients and appeal to new ones looking for integrated platforms. For long-term investors, the focus is on how this broader offering influences renewal activity, contract sizes, and the mix of customers across industries over time.
Composable HCM Platform Market to Triple by 2031 as Enterprises Abandon Monolithic HR Systems
The composable HCM platform market is projected to grow from $10.79 billion in 2026 to $27.37 billion by 2031, according to a new report from ResearchAndMarkets.com. The market was valued at $9.09 billion in 2025 and is expected to expand at a compound annual growth rate of 20.46%, driven by enterprises shifting to microservices and cloud-native architectures that allow individual HR modules to be swapped without disrupting entire systems. Platform software accounted for 67.42% of revenue in 2025, while cloud-based deployment represented 72.18%, and the Asia-Pacific region is forecast to see the fastest growth at a 24.89% CAGR. The report also highlights how vendors like Workday and SAP SuccessFactors are modularizing their offerings, with Workday launching Workday Build in September 2025 and SAP linking AI agents across HR functions in its first-half 2026 release. Data privacy and AI governance remain constraints, particularly in Europe where the EU AI Act classifies employment-related AI tools as high-risk.
Judge rules Workday must face lawsuit over AI bias in job screening tools
A federal judge ruled that Workday must face a proposed class-action lawsuit alleging its AI-driven hiring software discriminates against job applicants in violation of California law and the federal Americans with Disabilities Act. U.S. District Judge Rita Lin rejected Workday's argument that California anti-discrimination laws did not apply when it screens people outside the state, and she mostly denied the company's efforts to dismiss recent amendments to the case. The judge allowed claims that the software can exclude applicants based on proxy indicators of disabilities, such as employment gaps, but dismissed a claim of discrimination against Asian American applicants because proper procedure was not followed. The lawsuit, filed in 2023, is the first of its kind to broadly target AI screening tools now used by over 80% of U.S. employers and virtually all Fortune 500 companies. Workday said the claims are false and that its AI recruiting tools do not make hiring decisions, adding that its technology looks only at job qualifications and is rigorously tested under its Responsible AI program.
Workday, Procore, and Twilio Shares Fall as AI Fears Hit Software Stocks
Shares of Workday, Procore Technologies, and Twilio declined in afternoon trading as a broader sell-off in communication-services and software stocks was triggered by high-profile AI talent departures from Alphabet and regulatory concerns. Workday fell 4.4%, Procore Technologies dropped 3.7%, and Twilio slipped 2.4%, with the declines reflecting persistent market fears that AI agents will erode the subscription-based revenue model of traditional enterprise software. The previous week's nearly 20% single-day drop in Accenture after it cut its growth outlook and cited AI compressing demand for IT services reinforced the thesis, while the launch of more capable AI models like Anthropic's Claude Fable 5 and Claude Mythos 5 added to the pressure. An incident involving a US Apache helicopter near Oman and Trump's call for a response to an alleged Iranian attack over the Strait of Hormuz provided an additional macro headwind, as software valuations are sensitive to interest-rate expectations. Workday is now down 45.5% year-to-date and trading 54.7% below its 52-week high of $247.69.
Workday Stock Could Be 31.7% Undervalued as AI Growth Narrative Faces Market Test
Workday shares may be undervalued by 31.7% relative to a fair value estimate of $171.14, even as the stock has fallen 43.18% year to date and 50.91% over the past year. The last close was $116.93, and the most widely followed narrative frames the pullback as a sizable discount that depends on how the company's earnings and AI-driven growth story unfold. Broad adoption of AI-enabled HR and finance products, with more than 70% of customers using Workday Illuminate and over 75% of net new deals including at least one AI product, along with acquisitions like Paradox and Flowise, is fueling cross-sell and upsell activity that increases average contract values and supports future topline growth. However, a simpler price-based check shows the stock trading at a P/E of 34.1 times, above the peer average of 23.3 times and the US software industry average of 25.5 times, though still below its estimated fair ratio of 37.4 times. Risks include faster-moving AI rivals pressuring pricing or higher compliance and investment costs squeezing margins more than expected.
Workday Q1 Revenue Beats Estimates at $2.54 Billion
Workday reported first-quarter revenue of $2.54 billion, up 13.5% year on year and exceeding analyst expectations by 1.1%. The cloud-based finance and HR software provider also delivered an impressive beat on billings estimates. Co-founder and CEO Aneel Bhusri said the company is ready for the AI moment, with a strong core business and an AI strategy that is working. The stock was flat after the report and currently trades at $122.25.
Euna Payments Earns Workday Certification for Real-Time Revenue Posting
Euna Solutions announced that its Euna Payments has achieved Workday Certified Integration status, enabling real-time payment posting directly into Workday for public sector finance teams. The certification confirms that payments collected through Euna Payments are updated in real time via APIs across general ledger, accounts receivable, source systems, and bank accounts, giving finance teams immediate revenue visibility and eliminating manual reconciliation. Euna Payments serves more than 38 million constituents and maintains zero data breaches, and the integration is designed for the multi-department, multi-channel environments of municipalities, counties, and utilities. The solution is now listed on the Workday Marketplace.