Workday (WDAY) Rises After Q1 Earnings; AI Agent Adoption Drives Best ACV in Five Years

Workday Inc. (WDAY) shares rose 2.9% on May 28, 2026, after the enterprise software firm reported fiscal first-quarter results that surpassed expectations. CEO Aneel Bhusri said the company logged its strongest new annual contract value for a first quarter in five years, crediting increased demand for AI-driven functionality. The stock closed at $125.38, up from $121.85 before the release. Revenue and profitability were lifted by swift take-up of AI-powered agents, including the Sana and Paradox platforms, which automate human resources and finance processes. Management pointed to renewed momentum in core operations and improved operational focus. Analyst questions on the earnings call centered on key signposts ahead: monetization of recently launched AI tools such as the Sana Travel Agent and Sana for ITSM, the effect of a flex-credits pricing model on deal sizes and client retention, and international expansion into markets including Vietnam and EMEA. Broader integration of AI across use cases will also be a critical metric for execution.