TLDR
- Workday shares jumped over 7% after beating Q1 earnings and subscription revenue estimates, easing AI disruption fears
- Zoom raised its full-year guidance and reported strong AI product adoption, sending shares up around 8%
- IBM extended gains after announcing a new quantum foundry called Anderon, backed by $2 billion in funding
- Imax surged 14% on reports the company is exploring a sale to entertainment buyers
- Take-Two Interactive rose after confirming Grand Theft Auto 6 launches November 19
Workday delivered a strong first quarter, beating Wall Street estimates on earnings, revenue, and subscription growth. Adjusted earnings per share came in at $2.66, with revenue of $2.54 billion. Subscription revenue grew 14.3% year over year to $2.35 billion.
The company also raised its full-year adjusted operating margin outlook. Management pointed to growing momentum in its AI strategy and enterprise platform adoption as key drivers.
Zoom reported a solid first quarter too, with adjusted earnings per share of $1.55. Enterprise revenue grew 7.2%, and the company raised its full-year revenue guidance to between $5.08 billion and $5.09 billion.
CEO Eric Yuan highlighted a 184% jump in paid AI Companion users. That growth in AI product adoption helped push shares up around 8% in premarket trading.
IBM and Quantum Computing
IBM rose 2.4% Friday, extending gains from the previous session when it closed up more than 12%. The move came after IBM announced a new stand-alone quantum foundry called Anderon.
IBM and the U.S. Commerce Department will each contribute $1 billion to the project. The announcement positioned IBM as a leader in quantum computing infrastructure.
Imax jumped 14% after the Wall Street Journal reported the company is exploring a sale. Imax has approached entertainment companies as potential buyers, according to people familiar with the situation.
Retail and Gaming
Ross Stores beat first-quarter sales and earnings expectations and raised its full-year outlook. Shares climbed 5.8%. The discount retailer continues to attract shoppers looking for lower-priced goods.
Take-Two Interactive confirmed the November 19 launch date for Grand Theft Auto 6. Analysts at Oppenheimer project the game will sell 40 million units in fiscal year 2027. The launch is expected to benefit hardware and gaming companies including Sony, Microsoft, and Nvidia.
Estee Lauder rose 10% after ending acquisition talks with Spain’s Puig Brands. No further details on why the talks ended were provided.
Booz Allen Hamilton gained 5.3% after posting adjusted earnings of $1.78 per share for its fiscal first quarter, above the analyst estimate of $1.34. Revenue fell 6.4% year over year to $2.78 billion, missing the $2.87 billion estimate.
NervGen Pharma was the day’s biggest loser, falling 22% after pricing a public offering of 24 million shares at $2.50 each. The company expects to raise around $60 million in gross proceeds to fund clinical programs.
Stock futures pointed higher Friday morning as investors watched for progress in U.S.-Iran peace talks, which have helped ease concerns about global oil supply disruptions.
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