Workday (WDAY) stock jumped 8% on Tuesday, climbing close to $160, as investors positioned ahead of the company’s next earnings report expected around August 20, 2026. Analysts project fiscal Q2 2027 earnings per share of about $1.26, marking roughly 26% growth from a year ago, with a moderate buy consensus and a price target near $173. The rally followed two bearish calls earlier in July—a Morgan Stanley downgrade to underweight and a CLSA underperform initiation. Workday reported its best Q1 of new annual contract value growth in five years, driven by core business and rising AI adoption. Subscription revenue reached $2.354 billion, up 14%, total revenue hit $2.542 billion, up 13%, non-GAAP operating margin came in at 31.8%, and free cash flow grew 46% to $616 million. New contract value from agentic AI products grew more than 200% year-over-year, and the company is approaching $500 million in annual recurring revenue from AI solutions. More than 4,000 customers now use at least one organically built AI agent, more than double the prior quarter. Management raised non-GAAP operating margin guidance to 30.5% for fiscal 2027, while reiterating subscription revenue guidance of $9.925 billion to $9.950 billion.