Workday and Adobe Rise Amid AI Stock Decline
On September 14, Workday (WDAY) and Adobe (ADBE) rose by approximately 2.5% to 3%, bucking the downward trend in chip stocks following calls for slower frontier AI development. The market has been questioning whether stronger AI models could render existing software obsolete; however, a slowdown may allow established platforms more time to monetize their AI features. Workday reported $2.649 billion in revenue during its August 27 quarter with subscription growth at 13.9%. Management attributed over 25% of new annual contract value and usage by more than 5,500 customers to AI integration. Adobe's fiscal third-quarter results showed record revenue of $6.76 billion, a 13% increase year-over-year. Despite these gains, both companies face challenges including slower growth rates and potential cannibalization from newer products. Workday expects subscription revenue growth at 13%, while Adobe must navigate pricing pressures and competition.
Topics: Adobe AI software stocks stock performance Workday