Workday to join S&P 500, shares climb 9% in pre-market trading

Shares of Workday Inc . (NASDAQ:WDAY ) saw a 9% increase in pre-market trading on Monday after the announcement that the company will be joining the S&P 500 index . This change is set to occur prior to the market opening on December 23, aligning with the quarterly index rebalance.

Amentum Holdings Inc. (NYSE:AMTM) will be moving out of the S&P 500 to make room for Workday. Concurrently, Amentum Holdings is set to replace Service Properties Trust (NASD:NASDAQ:SVC ) in the S&P SmallCap 600 .

The S&P 500 is widely regarded as one of the best single gauges for large-cap U.S. equities. An inclusion in the index often reflects a company's strong market capitalization and liquidity, making it a significant event for the companies involved. The adjustments to the indices are part of routine changes that reflect market dynamics and maintain the indices' integrity as a representation of market segments.

In other recent news, Workday Inc. has been in the spotlight, with a 16% increase in third-quarter subscription revenue, reaching $1,559 million. Despite this, the company adjusted its fiscal year 2026 subscription growth forecast to a slightly lower 14%. Analyst firms have provided mixed reactions to these developments. TD Cowen and Oppenheimer maintained their positive ratings, while Goldman Sachs reduced its price target for Workday but sustained a Buy rating.

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Source: Investing.com