Workday Inc (NASDAQ:WDAY) shares added almost 6% on Monday morning at about $282 after it was announced the software firm will join the S&P 500.
The company will join the index ahead of the start of trading on Monday, December 23, as part of its quarterly rebalance.
To be included in the S&P 500, a company must meet a range of requirements, including having a market capitalization equal or greater to US$18 billion, be publicly listed on the New York Stock Exchange or Nasdaq and derive at least 50% of its revenue in the US.
Workday, founded in 2005, reported a quarterly profit of $193 million on revenue of $2.16 billion in November, up 16% year-over-year. It expects 14% revenue growth in fiscal 2026.
Also joining the S&P 500 is Apollo Global Management (NYSE:APO), which traded 1.4% higher on the news.
Workday and Apollo replace Qorvo and Amentum, which will be moving to the S&P SmallCap 600.
“All companies being added to the S&P 500 are more representative of the large-cap market space, all companies being added to the S&P MidCap 400 are more representative of the m id-cap market space, and all companies being added to the S&P 500 SmallCap 600 are more representative of the small-cap market space,” S&P Dow Jones Indices said in a statement.