Workday Shares Plunge as Weak Revenue Forecast and AI Competition Weigh on Growth
Workday shares fell today after the firm issued a weak revenue forecast amid AI competition. The company cited longer sales cycles and macro uncertainty.
Insights:
Workday, Inc. announced on Wednesday its subscription revenue forecast for fiscal year 2027, projecting a range between $9.93 billion and $9.95 billion. This guidance fell below the roughly $10 billion that analysts were expecting, serving as a primary trigger for an immediate market reaction. That guidance and related comments regarding a priority on additional spending for its agentic AI roadmap coincided with about a 10% premarket drop in the company’s shares, signaling weaker near-term demand and growing investor concern.
