Workday Stock Drops 10% Following Lower-Than-Expected Revenue Forecast

Despite surpassing Q3 earnings and revenue estimates, Workday's fiscal 2025 guidance fell short, leading to investor concerns.

Workday reported Q3 earnings of $1.89 per share and revenue of $2.16 billion, both exceeding Wall Street expectations.
The company forecast fiscal 2025 subscription revenue of $7.703 billion, slightly below analyst estimates of $7.714 billion.
Shares fell 10% in extended trading, bringing Workday's year-to-date stock decline to 12%.
Workday highlighted ongoing challenges with deal scrutiny in some regions but noted opportunities in the public sector.
The company announced new AI features for efficiency and succession planning, expected to launch in early 2025.