Workday Shares Fall 4% As Strong Q2 Results Overshadowed By Weak Outlook

Workday Inc. (NASDAQ:WDAY) reported second-quarter earnings and revenue above expectations, but shares fell more than 4% in premarket trade Friday after the company issued a softer revenue forecast for the current quarter and full year.

The enterprise software maker posted earnings of $2.21 per share, topping analyst estimates of $2.11. Revenue rose to $2.35 billion, just above expectations of $2.34 billion. Subscription revenue increased 14% to $2.17 billion.

The company’s 12-month subscription backlog (cRPO) reached $7.91 billion, up 16.4% year-over-year and slightly above guidance of 15% to 16%.

For the current quarter, Workday projected revenue of $2.235 billion, short of Wall Street’s estimate of $2.423 billion. For fiscal 2026, the company forecast revenue of $8.815 billion, below the consensus of $9.51 billion.