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Workday Growth Slows Amid Economic Uncertainty, Shares Drop 8%

2/25/2026

Summary

Story summary

Workday reported 14.5% year-over-year growth in its fiscal fourth-quarter revenue, totaling $2.53 billion.
Workday shares fell over 8% after the company forecast fiscal 2027 subscription revenue of $9.93–$9.95 billion, below Wall Street's $10 billion estimate.
Management cited economic uncertainty and high interest rates as factors delaying large software purchases and limiting new client acquisitions.
Despite headwinds, Workday remains focused on AI initiatives and cited a strong pipeline of opportunities.

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Story summary

Workday reported 14.5% year-over-year growth in its fiscal fourth-quarter revenue, totaling $2.53 billion.
Workday shares fell over 8% after the company forecast fiscal 2027 subscription revenue of $9.93–$9.95 billion, below Wall Street's $10 billion estimate.
Management cited economic uncertainty and high interest rates as factors delaying large software purchases and limiting new client acquisitions.
Despite headwinds, Workday remains focused on AI initiatives and cited a strong pipeline of opportunities.