Workday CEO Carl Eschenbach (right) heads to the morning session of the Allen & Co. Media and Technology Conference on July 11, 2025 in Sun Valley, Idaho.
David Paul Morris | Bloomberg | Getty Images
working day Shares fell more than 5% in after-hours trading Tuesday after the finance and human resources software maker released quarterly profit guidance that fell short of Wall Street expectations.
Here’s how the company performed compared to the LSEG consensus:
Earnings per share: $2.32 adjusted vs. $2.18 expected Sales: $2.43 billion vs. $2.42 billion expected
The company expects fourth-quarter adjusted operating margins of at least 28.5% and subscription revenue of $2.355 billion, according to a statement. StreetAccount consensus was for a 28.7% margin and $2.35 billion in subscription revenue.
Workday’s sales for the quarter ended Oct. 31 were up about 13% from the same period last year. Net income was $252 million, or 94 cents per share, up from $193 million, or 72 cents per share, in the year-ago period.
Third-quarter subscription revenue totaled $2.24 billion, with an adjusted operating margin of 28.5%. Analysts compiled by Street Account had expected subscription revenue of $2.24 billion and a profit margin of 28.1%.
During the fiscal third quarter, Workday unveiled an artificial intelligence agent to analyze the financial health of employee performance tests, and the company revealed plans to acquire AI and learning software startup Sana for $1.1 billion. Activist investor Elliott Management also said it had built more than $2 billion worth of Workday stock.
Workday stock has fallen this year as experts debate the risks that generative AI tools pose to the growth prospects of established cloud software companies. The company’s stock is down 9% so far in 2025, while the Nasdaq Composite Index is up 19%.
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