TLDRs;
- Workday stock surged 9.3% pre-market after announcing a $1.1B acquisition of AI firm Sana.
- Sana’s AI tools, used by over 1M users, will be integrated into Workday’s HR and finance platforms.
- Strong Q2 earnings and revenue growth provided momentum ahead of the acquisition news.
- Analysts say deal strengthens Workday’s AI strategy but execution is key amid slowing revenue growth.
Workday Inc. ($WDAY) saw its shares soar 9.3% in pre-market trading on Wednesday after announcing plans to acquire Sana, a Stockholm-based artificial intelligence company, for approximately $1.1 billion.
The acquisition, pending regulatory approvals and customary closing conditions, is expected to finalize in the fourth quarter of Workday’s fiscal year 2026, ending January 31, 2026.
The purchase marks Workday’s largest move yet into enterprise-focused AI, reinforcing its commitment to transform how organizations manage finance, human resources, and corporate learning.
Sana’s Technology Joins Workday Ecosystem
Founded in 2016, Sana has built a strong reputation in AI-driven enterprise learning and knowledge-sharing tools. Its flagship products, Sana Learn and Sana Agents, are used by more than 1 million users worldwide across industries ranging from healthcare to technology.
Workday said Sana’s tools will be directly integrated into its existing HR and finance solutions to offer enterprises deeper AI-driven insights, automated workflows, and personalized employee training. At the same time, Sana will continue developing its own suite of products under Workday’s ownership.
“Sana’s expertise will strengthen our ability to deliver intelligent, adaptive solutions that meet the complex needs of global organizations,” Workday leadership stated in a release.
Stock Surge Follows Stronger Q2 Performance
The acquisition news follows Workday’s better-than-expected Q2 earnings report last month. The company posted adjusted earnings per share of $2.21 versus analyst expectations of $2.11, alongside revenue of $2.4 billion compared to the $2.3 billion consensus estimate.
Revenue climbed 13% year-over-year, while net income rose to $228 million from $132 million in the same quarter last year. Despite this strong performance, Workday’s stock had previously been under pressure, sliding 12% year-to-date as investors grew cautious about slowing growth rates and government-sector revenue headwinds.
The Sana acquisition appears to have reassured markets about Workday’s growth trajectory, fueling a swift rebound in investor sentiment.
Analysts See Long-Term Growth Path
Industry analysts note that the Sana deal could position Workday more competitively in the rapidly expanding enterprise AI market. According to market research, enterprise AI adoption is expected to grow at more than 20% annually through 2030, driven by demand for automation and knowledge management tools.
However, questions remain about whether the acquisition will accelerate revenue growth enough to meet investor expectations. Workday’s projected full-year revenue of $9.5 billion matches consensus estimates, but signals a growth deceleration compared to prior years.
With a still-lofty P/E ratio above 120, analysts argue that Workday must prove that AI integration will create measurable returns to justify its premium valuation. For now, markets are rewarding the bold move, but sustainability will hinge on execution in 2026 and beyond.
