Workday stock fell Thursday after the software maker reported first-quarter earnings and revenue that topped Wall Street estimates amid lowered expectations while guidance roughly met expectations.
Workday reported earnings for the quarter ending April 30 after the market close.
The Pleasanton, Calif.-based company said earnings rose 28% to $2.23 per share on an adjusted basis. Workday's revenue climbed 12.6% to $2.24 billion, including acquisitions.
Analysts expected Workday to post earnings of 2.01 per share on revenue of $2.22 billion.
"We remain focused on executing in this uncertain environment and are reiterating our fiscal 2026 subscription revenue guidance of $8.8 billion while increasing our fiscal 2026 non-GAAP operating margin guidance to approximately 28.5%," Chief Financial Officer Zane Rowe said in the Workday earnings news release.
Workday Stock: Guidance Roughly In Line
For the current quarter ending in July, Workday expects subscription revenue of $2.16 billion versus estimates of $2.164 billion.
On the stock market today, Workday stock fell more than 7% to 251.51 in extended trading.
In January, Workday announced a restructuring that reduced its workforce by 8.5%, or 1,750 employees. The restructuring will be largely complete by the second quarter of fiscal 2026, the company said.
The company sells software for human resources management, such as payroll tools. About 70% of revenue comes from human capital management products. Also, it has expanded into financial software.
Heading into the Workday earnings report, shares were up 5% in 2025. Slowing subscription revenue growth has pressured Workday stock.
From a consolidation base, Workday holds an entry point of 276.
Workday stock holds a Relative Strength Rating of 78 out of a best-possible 99, according to IBD Stock Checkup.
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