Workday reported a fiscal second-quarter profit of $632 million, or $2.57 a share, up from $228 million a year earlier, driven by growing adoption of its AI agents. Adjusted earnings were $2.75 a share, beating analyst expectations of $2.61. Revenue rose 13% to $2.65 billion, also topping forecasts.

CEO Aneel Bhusri said AI drove more than 25% of new annual contract value, with over 5,500 customers using at least one organic agent. CFO Zane Rowe noted AI's role in customer expansion. The company lifted the lower end of its full-year subscription revenue guidance to $9.94-$9.95 billion, versus analyst consensus of $9.95 billion.

The earnings come after Reuters reported potential buyout discussions with private-equity firm Silver Lake, which Workday did not address. The stock had sold off earlier this year on AI displacement fears but has recovered partly due to the buyout report. Bhusri returned as CEO in February to oversee the AI push. For Q3, Workday guided subscription revenue to $2.52 billion, slightly above estimates of $2.51 billion.