Workday's stock has a moderate growth outlook with a Composite Rating of 71 and an D+ Accumulation/Distribution Rating, amid pressure from slowing subscription revenue growth, which has impacted its stock performance.

The company is expected to provide updates on its strategic plans during the upcoming Workday Rising conference and an analyst day scheduled for late Tuesday.

Workday primarily offers human resources management software, generating about 70% of its revenue from human capital management products, and has expanded into financial software.

The integration will enable features such as tailored dashboards for hiring managers, automation of performance reviews, and proactive onboarding suggestions based on real-time data.

Workday announced the acquisition of AI company Sana for approximately $1.1 billion, aiming to enhance its AI capabilities and transform the work experience with integrated AI-driven tools.

The deal is supported by financial advisors Allen & Company LLC and legal advisors DLA Piper, with Sana continuing product development alongside integration efforts to accelerate innovation.

Workday has launched Workday Build, a low-code platform that enables customers and partners to create custom AI solutions, shifting focus from consuming to creating AI.

These AI enhancements are powered by Workday Data Cloud, connecting AI agents to business intelligence and operational systems, with partnerships announced with Databricks, Salesforce, and Snowflake.

Sana Labs is an AI-native platform focused on learning, knowledge management, and agentic applications, offering tools like Sana Agent and Sana Learning to create personalized, dynamic content.

Despite strong second-quarter earnings, with a 71% increase in EPS to 84 cents and nearly 13% revenue growth to $2.348 billion, Workday's stock has declined about 1% in premarket trading following the announcement.

The acquisition is expected to close in the fourth quarter of Workday's fiscal year 2026, ending January 31, 2026, pending regulatory approvals and customary closing conditions.