11 Best Enterprise Software Stocks to Invest In

6. Workday Inc. (NASDAQ:WDAY)

Number of Hedge Fund Holders: 84

Workday Inc. (NASDAQ:WDAY) provides cloud-based enterprise applications and specializes in human capital management (HCM) and financial management solutions. Its cloud-based platform offers applications for various HR functions, such as talent acquisition, performance management, and payroll, as well as financial functions, including financial planning and analysis, accounting, and procurement.

Over 30% of customer expansions in the company in FQ3 2025 involved AI. For instance, Recruiter Agent, a task-automating agent, saw a massive quarter with new logo closures surpassing any previous quarter in its 12-year history. It’s boosting the average selling price of core recruiting solutions by almost 150%. Talent Optimization experienced up to a 39% reduction in turnover. Workday Assistant, the AI-powered copilot, is being used by over 2,000 HCM customers, improving efficiency and reducing HR case volumes by nearly 30%.

This AI-driven growth contributed to 16% subscription revenue growth and 16% total revenue growth in Q3. This demonstrates the impact of AI across various aspects of Workday Inc.’s (NASDAQ:WDAY) business, highlighting key products and customer successes. It positions AI as the primary driver of growth for the company.

Polen Focus Growth Strategy stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q3 2024 investor letter:

“We added to several existing positions in the quarter including Adobe, Workday, Inc. (NASDAQ:WDAY), Shopify, MSCI, and Paycom Software. Workday is still growing revenue at a mid-to-high-teens rate, but in recent years, slower macroeconomic growth has made closing deals more challenging. Amidst a pullback, we increased our position as we found the valuation attractive for a well-positioned, recurring revenue business with still strong growth potential. The company also recently stated publicly that it will be focused on expanding profit margins meaningfully over the next five years—something we have expected and are pleased to see.”