A close-up of the Workday logo on its headquarters in Pleasanton, California.
Smith Collection | Archive Photos | Getty Images
Workday shares jumped almost 10% in extended trading on Friday after S&P Dow Jones Indices said the cloud software vendor will be added to the S&P 500.
It will replace Amentum Holdings on the index effective Dec. 23, according to a statement.
The index has picked up a handful of 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. In November, Workday delivered $193 million in net income on $2.16 billion in quarterly revenue, which was up 16% year over year.
In each fiscal year until 2022, Workday had reported losses. Inflation and higher interest rates were making investors less interested in backing unprofitable companies, and many software executives understood they had to reduce costs.
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.
In February, Carl Eschenbach became Workday’s sole CEO after being co-CEO since late 2022 alongside Aneel Bhusri, a co-founder.
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