ServiceNow, Adobe, Workday stocks get BofA PT boost: what’s driving the optimism

Pegasystems (PEGA) reported Q2 revenue of $393.4M, up 3.1% YoY, missing estimates by 6.6%. ServiceNow (NOW) reported $3.99B in revenue, up 24% YoY, beating estimates. Microsoft (MSFT) reported $90.01B in revenue, up 17.7% YoY, exceeding expectations. PEGA's stock is up 1.9%, NOW up 64%, and MSFT up 33.5% since reporting.

Workday (WDAY) issued $2.5B in senior notes due 2029-2036 at 5.700%-6.500% interest, expecting $2.47B net. It will use $1B to refinance 2027 debt and the rest for corporate purposes, according to the company.

Guggenheim raised its price target for ServiceNow (NOW) to $175 from $125. The stock was trading at $157.00, up 2.53% in pre-market. The adjustment reflects the firm's updated outlook on the company's valuation and growth prospects.

The US Department of Labor suspended eight IT firms, including Infosys, TCS, Wipro, HCL, Cognizant, Capgemini, Microsoft, and Adobe, from applying for permanent residency for foreign workers. This move, ahead of US mid-term elections, aims to address domestic political concerns. Existing applications are on hold, and new ones will not be accepted, impacting H1B visa holders' prospects for permanent residency.

Workday has priced a public offering of $2.5 billion in senior notes. The company's stock is currently trading at $202.96, with a 5-day change of -0.50% and a year-to-date change of +7.52%.

Workday (WDAY) priced a $2.5B senior notes offering with rates ranging from 5.700% to 6.500%. The offering, due between 2029 and 2036, aims to redeem $1B in 2027 notes and fund general corporate purposes. WDAY stock fell 0.50% to $202.96 on Nasdaq.