A close-up of the logo at Workday’s headquarters in Pleasanton, California.
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working day The stock rose 9% in after-hours trading Friday after S&P Dow Jones Indices announced the cloud software vendor would be added to the S&P 500.
The company has a market capitalization of approximately $70 billion. amentum holdings According to the statement, the changes will be reflected in the index as of December 23. Several other notable technology stocks have been added to the S&P 500 this year. Dell and Palantir.
Founded in 2005 and headquartered in Pleasanton, California, Workday went public on the New York Stock Exchange in 2012. Five years later, the company switched its listing to the Nasdaq.
In November, Workday reported net income of $193 million on quarterly revenue of $2.16 billion, a 16% increase from the same period last year. The company is targeting 14% sales growth in fiscal year 2026. Workday, which sells human resources and finance software, reported a net loss before fiscal 2022.
To be eligible for inclusion in a prominent U.S. index, a company must have a profit in the most recent quarter in addition to its four most recent quarterly profits.
In February, Karl Eschenbach, a former VMware executive and Sequoia Capital investor, became Workday’s sole CEO after serving as co-CEO with co-founder Anil Bhosri from the end of 2022. was appointed. Eschenbach told analysts on a November conference call that Workday plans to release an artificial intelligence agent this year to create and submit expense reports, and an agent to identify inefficiencies in business processes. He said it is scheduled to appear in 2025.
Stock prices often rise when they are added to major indexes, as fund managers have to rebalance their portfolios to reflect the changes.
More and more tech companies are joining the S&P 500, but not all of them have proven lucrative for investors who buy index funds. server manufacturer super micro It was added to the S&P 500 in March after the stock rose significantly, driven by demand. Nvidia-based server.
Supermicro’s stock price reached an all-time high shortly after the announcement, but fell in the following months after the company failed to file financial results on time. Shares have fallen about 60% from their peak, and the company announced Friday that it had received a request from Nasdaq to extend its listing.
WATCH: Workday Co-CEO Carl Eschenbach on the impact of AI and what the job market will look like in 2024
