Workday's stock price rises 9% after being added to the S&P 500 index.

• Amentum Holdings will be replaced by Workday in the S&P 500 stock index.
• In the 2022 fiscal year, Workday became profitable after years of losses, and anticipates a 14% increase in subscription revenue by fiscal 2026.
• The company's market cap has topped $70 billion.

On Friday, the S&P 500 announced that it would include a cloud software vendor, resulting in a 9% increase in shares during extended trading.

The S&P 500 has added several other prominent technology stocks this year, including and, which has a market cap of about $70 billion and will replace in the index effective Dec. 23, according to a statement.

In 2012, Workday, founded in 2005 and based in Pleasanton, California, went public on the New York Stock Exchange. Five years later, the company switched its listing to the Nasdaq.

In the 2026 fiscal year, Workday, a software company that specializes in human resources and finance, forecasted 14% revenue growth. Prior to fiscal 2022, the company had been reporting net losses. In November 2021, Workday reported $193 million in net income on $2.16 billion in quarterly revenue, which was an increase of 16% from the previous year.

In order to be included in the prominent U.S. index, companies must demonstrate profit in the most recent quarter as well as the four preceding quarters.

In November, Workday CEO Carl Eschenbach announced that the company will release an artificial intelligence agent for creating and submitting expense reports this year, and an agent for identifying inefficiencies in business processes will arrive in 2025.

When stocks are included in a significant index, fund managers must adjust their portfolios, which frequently leads to a stock price increase.

Not all tech companies that have joined the S&P 500 have been profitable for investors who invest in index funds. In March, server maker was added to the S&P 500 after a significant increase in its stock price due to demand for -based servers.

After announcing its peak, Super Micro's stock tumbled and is now about 60% off its high. On Friday, the company announced it received an extension from Nasdaq to maintain its listing.

Carl Eschenbach, co-CEO of Workday, discusses the influence of AI and the job market outlook in 2024.