Cloud software vendor Workday will replace Amentum Holdings in the S&P 500 stock index after a year of profit and significant revenue growth. The company’s market cap has exceeded $70 billion, and its shares jumped 9% on Friday following the announcement.
Workday went public in 2012 and switched to the Nasdaq five years later. In November, it reported $193 million in net income and 16% year-over-year revenue growth. For fiscal 2026, the company expects 14% subscription revenue growth.
To be eligible for the S&P 500, companies must show a profit in their most recent quarter, along with four consecutive quarters of profitability. Workday’s CEO Carl Eschenbach, who took over in February, has outlined plans to release artificial intelligence agents for expense reports and business process efficiency by next year.
The addition of tech companies to the S&P 500 often leads to price increases as fund managers rebalance their portfolios. However, not all additions have been successful, such as server maker Super Micro, whose stock plummeted after its listing in March.
Source: https://www.cnbc.com/2024/12/06/workday-shares-pop-9percent-on-inclusion-in-sp-500.html