Workday Stock Soars: Key Takeaways

Share Surge: Workday (WDAY) shares soared over 6% premarket after releasing preliminary Q4 2025 guidance.

Guidance Expectations: The company expects results to align or surpass previous forecasts, excluding GAAP operating margin.

Restructuring Plan: Workday announced an 8.5% workforce reduction, incurring costs that will impact operating margins.

GAAP Margin Impact: Q4 2025 GAAP operating margin is projected to decline 22-23 percentage points below non-GAAP margin.

Market Reaction: Despite historically stable stock movement, today's surge indicates market significance.

Historical Performance: Workday has risen 9.2% YTD but remains 10.5% below its 52-week high.

Long-Term Investment: Investments made five years ago have yielded a 45.9% return.

Future Outlook: Enterprise software companies leveraging generative AI are considered potential future industry leaders.

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