"After eight consecutive quarters of beating expectations, the question isn't whether the company will exceed estimates. It's whether management can prove the AI narrative is translating into durable margin expansion. Proving Margins Can Scale Alongside AI Investment Last quarter, Workday delivered a 10.9% earnings surprise on $2.23 EPS against $2.01 expectations. Revenue came in at $2.35 billion, up 16.7% year-over-year. Operating margin hit 10.6%, and management sounded confident about demand for its AI-powered finance and HR applications."
"Since then, the company announced it will acquire Pipedream, an integration platform connecting more than 3,000 business applications. The deal, disclosed November 19, signals Workday is accelerating its push into actionable AI and workflow automation. The timing matters. Announcing a strategic acquisition days before earnings typically reflects management confidence in the quarter and the forward outlook. Shares have pulled back roughly 8% from the October high of $239.92, trading near $226.64 as of yesterday's close."
Workday reports fiscal Q3 results after the bell following eight consecutive quarters of earnings beats. The prior quarter delivered a 10.9% EPS surprise with $2.23 versus $2.01, revenue of $2.35 billion up 16.7% year-over-year, and an operating margin of 10.6%. Management signaled confidence in demand for AI-powered finance and HR applications. The company announced the acquisition of Pipedream, an integration platform linking over 3,000 business applications, signaling acceleration into actionable AI and workflow automation. Shares have pulled back about 8% from the October high and the stock shows neutral RSI. Consensus expects $2.17 EPS and the focus remains on subscription growth, customer additions, margin scalability, and guidance tone.
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