What Happened?
Shares of cloud reporting platform Workiva (NYSE: WK) jumped 11.5% in the morning session after the company reported strong third-quarter 2025 financial results, beating analyst expectations and raising its full-year earnings guidance. For the quarter, revenue grew 20.8% year-over-year to $224.2 million, surpassing Wall Street's estimates. The outperformance was even more significant on the bottom line, where adjusted earnings per share (EPS) of $0.55 came in 42.7% ahead of consensus. The company also demonstrated strong operational efficiency, with its adjusted operating margin of 12.7% easily beating expectations. Looking ahead, management provided an optimistic outlook, guiding for fourth-quarter revenue above forecasts and increasing its full-year adjusted EPS guidance by nearly 24%, signaling confidence in its continued profitability.
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What Is The Market Telling Us
Workiva’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Workiva and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was about 1 month ago when the stock dropped 3.5% on the news that tech stocks pulled back as a report raised concerns about artificial intelligence demand and profitability. Oracle shares lost more than 5% following news of its cloud business generating lighter margins than expected. According to internal documents cited in the report, the gross profit margin for this business was only 14%, a figure much lower than what analysts had expected. This suggested that the high costs of running the advanced chip infrastructure were weighing on profitability. Compounding these worries was the ongoing U.S. government shutdown, in its second week, with no clear resolution in sight from Washington. These updates drove investors away from riskier assets and towards safe havens, a trend highlighted by gold futures hitting a record $4,000 per ounce for the first time.
Workiva is down 19.3% since the beginning of the year, and at $87.84 per share, it is trading 23.5% below its 52-week high of $114.78 from December 2024. Investors who bought $1,000 worth of Workiva’s shares 5 years ago would now be looking at an investment worth $1,209.
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