Close-up of the Workday logo on its headquarters in Pleasanton, California.
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Work day Shares jumped 9% in extended trading Friday after S&P Dow Jones Indices said the cloud software vendor would be added to the S&P 500 index.
The company, with a market value of about $70 billion, will replace it Amentum Holding Company In the index as of December 23, according to a statement. The S&P 500 has added several other notable technology stocks this year, including… Dale 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, which was 16% higher than the previous year. The company called for 14% revenue growth in fiscal 2026. Before fiscal 2022, Workday, which sells human resources and finance software, was reporting net losses.
To be eligible for inclusion in the prominent US index, companies need to show earnings in the most recent quarter, along with earnings in the last four quarters.
In February, Carl Eschenbach, former VMware CEO and Sequoia Capital investor, became Workday's sole CEO after having been co-CEO since late 2022, alongside co-founder Aneel Bhusri. Workday will launch an artificial intelligence agent to create and submit expense reports this year, and an agent to identify inefficiencies in business processes will arrive in 2025, Eschenbach told analysts on a conference call in November.
Stocks often rise when added to a major index, as fund managers need to rebalance their portfolios to reflect the changes.
While more technology companies have joined the S&P 500, not all of them have proven to be money makers for investors who buy index funds. Server maker Super micro It was added to the S&P 500 in March after a big rally in the stock, driven by demand Nvidiabased servers.
Super Micro shares peaked shortly after this announcement, but then declined in the following months as the company failed to file its financial statements on time. The stock is down about 60% from its peak, and the company said Friday it had received an extension from Nasdaq to retain its listing.
Watch: Workday Co-CEO Karl Eschenbach on the impact of AI on the job market landscape in 2024
