Workday to Join S&P 500, Shares Surge 9% in Pre-Market Trading

Workday Inc. (NASDAQ:WDAY) shares rose by 9% in pre-market trading on Monday following the announcement that the company will be added to the S&P 500 index. This change is scheduled to take place before the market opens on December 23, in alignment with the quarterly index rebalancing.

To make room for Workday, Amentum Holdings Inc. (NYSE:AMTM) will be removed from the S&P 500. At the same time, Amentum Holdings is expected to take the place of Service Properties Trust (NASD:SVC) in the S&P SmallCap 600.

The S&P 500 is considered one of the leading indicators of large-cap U.S. stocks. Inclusion in the index typically reflects a company's strong market capitalization and liquidity, marking a significant event for the respective companies. Adjustments to indices are part of routine changes that reflect market dynamics and maintain the integrity of indices as representatives of market segments.

In other recent news, Workday Inc. reported a 16% increase in third-quarter subscription revenue, reaching $1.559 billion. However, the company revised its fiscal year 2026 subscription growth forecast down to 14%. Analyst firms responded mixed to these developments. While TD Cowen and Oppenheimer maintained their positive ratings, Goldman Sachs lowered its price target for Workday but retained its "Buy" rating.