Investing.com -- Workday Inc (NASDAQ: WDAY ) shares surged 8% after the AI-powered enterprise management platform reported fourth-quarter earnings and revenue that exceeded analyst expectations, while also providing robust guidance for the upcoming fiscal year.

The company posted adjusted earnings per share of $1.92, surpassing the analyst estimate of $1.78 by $0.14. Revenue for the quarter came in at $2.21 billion, beating the consensus estimate of $2.18 billion and marking a 15% increase YoY.

Workday's subscription revenues, a key metric for the company, rose 15.9% YoY to $2.04 billion. The company's 12-month subscription revenue backlog grew 15.2% to $7.63 billion, while total subscription revenue backlog increased 19.7% to $25.06 billion.

For the fiscal year 2026, Workday expects subscription revenue of $8.8 billion, representing 14% growth. The company also raised its non-GAAP operating margin guidance to approximately 28%, up from its previous forecast.

"Our fourth quarter performance is a testament to Workday's value proposition as organizations seek to boost productivity, run more efficiently, and deliver incredible employee experiences," said Carl Eschenbach, CEO of Workday.

The company's strong performance was driven by solid growth across key areas, including continued momentum with full suite and financials products, growing demand for AI offerings, and strong execution across industry verticals.

Workday's customer base now exceeds 11,000 organizations worldwide, including approximately 30% of the Forbes Global 2000. The company also announced new partnerships and product enhancements, including the Workday Agent System of Record for managing AI agents.