What Happened?
Shares of financial and compliance reporting software company Workiva (NYSE: WK) jumped 26.5% in the morning session after the company reported strong second-quarter financial results that beat Wall Street estimates and raised its full-year guidance.
The company's total revenue increased 21% year-over-year to $215 million, powered by a 23% jump in subscription revenue. Earnings per share came in at $0.19, which massively surpassed analyst expectations of just $0.05. Workiva also demonstrated strong demand from large customers, as contracts valued over $500,000 grew by 35%. Buoyed by the strong performance, management lifted its full-year 2025 outlook and projected total revenue between $870 million and $873 million with an improved operating margin.
Is now the time to buy Workiva? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Workiva’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Workiva and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 3.1% on the news that the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada. This move is far more than a typical trade dispute; it targets the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals. This move has sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks.
Workiva is down 26.4% since the beginning of the year, and at $80.13 per share, it is trading 30.2% 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 $1,388.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
