{
  "id": 4876043,
  "title": "Workday (WDAY): Pioneering the Future of Enterprise Resource Planning",
  "url": "https://urgent.news/2026/09/01/workday-wday-pioneering-the-future-of-enterprise-resource-planning",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-01T14:07:26.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/workday-wday-pioneering-future-enterprise-140726261.html"
  },
  "original_language": "en",
  "account": "Hotchkis & Wiley, an investment management firm, disclosed its Q2 2026 investor letter for the Large Cap Fundamental Value Fund. While equity markets experienced robust performance, with the Russell 1000 Value Index rising by 13.9%, individual stocks generally lagged behind. Semiconductor stocks and AI-related sectors, however, witnessed significant gains. The rally seemed speculative, with a vast performance discrepancy between high-beta and low-volatility stocks, as well as momentum stocks outperforming the market. Despite the excitement surrounding AI investments, there are worries about inflated valuations akin to the dot-com era. The fund adopts a cautious stance on AI beneficiaries, suggesting high-quality businesses with reasonable valuations may fare better. Historical trends indicate that speculative markets often revert to valuations based on fundamental economic principles, and the selected investments are expected to be prepared for such a transition. The fund underperformed the index in the quarter, returning 5.69% compared to the Russell 1000 Value Index's 13.87%, primarily due to its lack of exposure to high-performing sectors such as semiconductors. In its Q2 2026 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund emphasized Workday, Inc. (NASDAQ:WDAY), a leading cloud software company offering HCM, financial management, and ERP products. Closing at $197.45 per share on August 31, 2026, Workday, Inc. (NASDAQ:WDAY) had a market capitalization of $47.59 billion. Over the past month, the company's shares rose by 15.87%, but have declined 13.29% over the past year. Despite a 14% increase in subscription revenue, a 16% rise in 12-month backlog, and industry-leading retention, Workday, Inc. (NASDAQ:WDAY) experienced a decline in its stock price, pressured by concerns that AI could disrupt application software vendors. However, subscription revenue growth, 12-month backlog expansion, retention at an industry-leading level, margin expansion, and management's reaffirmation of full-year subscription revenue guidance, along with increased use of Workday-developed agents by more than 4,000 customers, indicate that AI adoption is progressing. Workday, Inc. (NASDAQ:WDAY) is not among the 40 Most Popular Stocks Among Hedge Funds, and while the disruption thesis may underestimate enterprise switching costs and the non-code moat that makes Workday durable, the fund continues to believe that certain AI stocks offer greater upside potential with less downside risk.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}