Workday Beats Q4 Revenue, Then Tanks on Weak Outlook
Workday's Q4 numbers cleared the bar, but a soft subscription forecast sent shares tumbling over 9% after hours.
Workday posted Q4 revenue of $2.53 billion, up 14.5% year-over-year and just barely edging past Wall Street's $2.52 billion estimate. Solid quarter by most measures.
Then came the outlook — and the mood shifted fast.
The enterprise HR and finance software giant issued FY 2027 subscription revenue guidance that landed below analyst expectations. That was enough to hammer WDAY shares, which dropped more than 9% in after-hours trading.
It's a familiar pattern in SaaS land: beat the current quarter, disappoint on forward guidance, and watch the stock crater. Investors aren't buying what you did — they're pricing what you'll do next.
Workday's core business remains healthy, but the lighter-than-expected subscription forecast raises questions about growth momentum heading into FY 2027.