What Happened?
Shares of cloud reporting platform Workiva (NYSE: WK) jumped 5.7% in the morning session after the company reported strong fourth-quarter 2025 results that surpassed Wall Street's expectations and provided an optimistic forecast for the upcoming quarter.
For the quarter, revenue grew 19.5% year on year to $238.9 million, beating analysts' estimates. Looking ahead, Workiva projected first-quarter 2026 revenue of around $245 million, which also came in ahead of expectations. The strong performance was supported by a 20.1% increase in billings, a key indicator of future revenue. The company also demonstrated significant operational improvement, as its operating margin flipped to a positive 3.3% from a negative 6.7% in the same quarter last year. A healthy free cash flow of over $50 million and the addition of 83 new customers during the quarter further bolstered investor confidence.
After the initial pop the shares cooled down to $61.50, up 3.7% from previous close.
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What Is The Market Telling Us
Workiva’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 6.8% on the news that investor fears over artificial intelligence disrupting the software industry sparked a broad sell-off. The anxiety stemmed from the rapid adoption of new 'agentic AI' tools, which some investors believed could dismantle traditional Software-as-a-Service (SaaS) business models. This 'AI Panic' led to indiscriminate selling across the sector. The market move reflected growing concerns about the downside of the AI boom for established software companies.
Workiva is down 25.9% since the beginning of the year, and at $61.50 per share, it is trading 34.1% below its 52-week high of $93.31 from November 2025. Investors who bought $1,000 worth of Workiva’s shares 5 years ago would now be looking at an investment worth $573.85.
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