What is Workday's fiscal 2027 subscription revenue forecast?

Workday forecasts its fiscal 2027 subscription revenue to be between $9.93 billion and $9.95 billion.

Why is Workday's revenue forecast below expectations?

Corporations are reducing technology spending amid economic uncertainty and higher interest rates, leading them to scrutinize software investments and delay purchasing decisions.

How did Workday's shares react to the forecast?

Workday's shares fell by 6% in extended trading following the announcement of its fiscal 2027 revenue forecast.

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Workday Misses Revenue Target Amid Tech Spending Slowdown

25 Feb

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Summary

Workday forecasts fiscal 2027 subscription revenue below estimates.
Corporations are reducing technology spending due to economic uncertainty.
The company's shares declined by 6% in extended trading.

Workday Misses Revenue Target Amid Tech Spending Slowdown

Workday has projected its fiscal 2027 subscription revenue to be below analyst expectations. This forecast comes as businesses globally are scrutinizing technology expenditures due to prevailing economic uncertainty and higher interest rates.

The enterprise software provider anticipates annual subscription revenue to range between $9.93 billion and $9.95 billion. This falls short of the approximately $10 billion projected by market analysts. The company's total revenue for the quarter ending January 31 reached $2.53 billion, narrowly meeting consensus estimates.

These challenges coincide with a broader trend of corporations delaying major software purchases. Despite investments in artificial intelligence, Workday is experiencing headwinds from the macroeconomic climate, which is prompting a more cautious approach to big-ticket technology investments by its clients.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.