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Human Resources Software Company Workday
An aerial view of Workday headquarters (Justin Sullivan/Getty Images)

Workday shares soar as Wall Street turns optimistic on AI-driven Q4 earnings beat

Workday shares climb after the cloud-based software giant dropped strong Q4 earnings results.

Nia Warfield
2/26/25 12:43PM

Workday shares climbed as much as 10% a day after the cloud-based software giant dropped strong Q4 earnings results. Workday’s revenue jumped 15% to $2.21 billion for the quarter, topping Wall Street’s expectations of $2.18 billion. Adjusted earnings per share also came in well above estimates, hitting $1.92, compared to an expected $1.78. For fiscal 2026, Workday expects $8.8 billion in subscription revenue, reflecting 14% growth and slightly higher than the forecast given in November.

Workday has benefited from its growing focus on AI, which has been increasingly integrated into its popular enterprise solutions business. Workday’s CEO noted that about 30% of its expansions with existing clients in the past quarter involved AI products.

According to the company, the rise of government efficiency initiatives has also created new opportunities for Workday, particularly as the company has ramped up its focus on federal sales over the past year and a half.

Despite Workday shares being down nearly 12% over the past year, its latest results have fueled a surge of optimism on Wall Street. On Wednesday, RBC Capital analysts hiked their price target on Workday shares to $340 from $320, maintaining its outperform rating. Piper Sandler also raised its price target to $290 from the previous $270. Canaccord Genuity raised its target to $330 and kept a buy rating, highlighting Workday’s strong performance and its strategic focus on artificial intelligence.

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Rocket lab soars to new record close amid rally for retail faves

Rocket Lab ripped by roughly 10% Friday to close at a new all-time high, riding an upturn of retail enthusiasm for a coterie of tech-themed favorites, even as the broader market was more or less flat on the day.

Goldman Sachs’ basket of “retail favorites” — its heaviest weights are Reddit, AppLovin, and Tempus AI — was the second-biggest gainer among the company’s flagship US equity baskets on Friday, rising about 1.6%. The S&P was almost dead flat.

It’s not Rocket Lab’s first retail rodeo, as the money-losing company has more than doubled this year and is up nearly 700% over the last 12 months.

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Six Flags pops after reiterating its guidance as theme park attendance rebounds

Six Flags shares rose more than 7% today after the company reported a rebound in attendance and early season pass sales heading into the fall. The nine-week period ended August 31 saw 17.8 million guests, up about 2% from the same stretch last year, with stronger momentum in the final four weeks. 

More importantly, Six Flags reaffirmed its full-year adjusted EBITDA guidance of $860 million to $910 million, showing confidence that its cost and operations strategy can stay strong for the duration of the year. Riding that wave, Six Flags also said early 2026 season pass unit sales are pacing ahead of last year, and average season pass prices are up about 3%.

The good vibes come despite a drop in in-park per-capita spending, especially from admissions, where promotions and changes to attendance mix (which parks or days guests visit) have weighed. Earlier this week, the amusement giant signed a new agreement that extended its position as the exclusive amusement park partner for Peanuts™ in North America through 2030.

Despite the rally, Six Flags shares are down about 52% year to date.

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Rivian turns red on the year, squeezed by a recall and the looming end of the EV tax credit

Shares of EV maker Rivian are down more than 5% on Friday following the company’s recall of 24,214 vehicles due to a software issue. The stock move erases Rivian’s year-to-date gain and turns the company negative on the year.

Rivian’s 2025 model year R1S and R1T are affected by the defect, which was identified after a vehicle’s hands-free highway assist software failed to identify another vehicle on the road, causing a low-speed collision. Rivian said it’s released an over-the-air update to fix the issue.

The recall marks Rivian’s fifth this year, affecting nearly 70,000 of its vehicles.

Rivian’s shares are down more than 20% from their 2025 high, which came prior to the passage of President Trump’sbig, beautiful bill.” Through the legislation, the $7,500 EV tax credit is set to expire at the end of the month.

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