Workday shares pop 9% on inclusion in S&P 500
Workday has turned profitable in recent years and is on pace to grow subscription revenue by 14% in the next fiscal year.
Workday shares jumped 9% in extended trading on Friday after S&P Dow Jones Indices said the cloud software vendor will be added to the S&P 500.
The company, which has a market cap of about $70 billion, will replace Amentum Holdings in the index effective Dec. 23, according to a statement. The S&P 500 has added several other prominent technology stocks this year, including Dell and Palantir.
Workday, founded in 2005 and based in Pleasanton, California, 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 $193 million in net income on $2.16 billion in quarterly revenue, which was up 16% from a year earlier. The company called for 14% revenue growth in the 2026 fiscal year. Prior to fiscal 2022, Workday, which sells human resources and finance software, was reporting net losses.
To be eligible for inclusion in the prominent U.S. index, companies need to show a profit in the most recent quarter, along with profit in the four most recent quarters.