Workday Inc. Joins S&P 500

Shares of Workday Inc. (NASDAQ: WDAY) increased by 9% in pre-market trading following the announcement that it will join the S&P 500 index, effective December 23, ahead of the quarterly index rebalance.

Amentum Holdings Inc. (NYSE: AMTM) will exit the S&P 500 to accommodate Workday's inclusion. Amentum will also replace Service Properties Trust (NASDAQ: SVC) in the S&P SmallCap 600.

The S&P 500 is recognized as a key benchmark for large-cap U.S. equities. Joining the index typically indicates strong market capitalization and liquidity for a company, marking an important milestone. These index changes are regular adjustments to mirror market conditions and uphold the integrity of the indices.

In other news, Workday Inc. reported a 16% rise in third-quarter subscription revenue, totaling $1,559 million. However, the company has slightly lowered its fiscal year 2026 subscription growth target to 14%. Analyst opinions varied: TD Cowen and Oppenheimer kept their positive outlooks, while Goldman Sachs lowered its price target but maintained a Buy rating.

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