Workday Q4 EPS Tops Estimates, Guides Q1 Revenue 0.8% Below Forecast, Shares Fall 10%
Workday posted Q4 adjusted EPS of $2.47 and revenue of $2.53 billion, beating estimates, with subscription revenue up 15.7% versus 14.5% total growth. The company now forecasts Q1 revenue of $2.51 billion and FY revenue of $10.63–10.66 billion, triggering a 10% share slump and analyst target cuts.
1. Q4 Earnings Beat
Workday delivered adjusted EPS of $2.47 and revenue of $2.53 billion for its fiscal fourth quarter, exceeding consensus by $0.15 and $10 million, respectively. Subscription revenue rose 15.7% year-over-year, outpacing overall revenue growth of 14.5%.
2. Guidance Shortfall
Management projected first-quarter revenue of $2.51 billion versus the $2.53 billion consensus, and full-year revenue of $10.63–10.66 billion below the $10.72 billion estimate, raising concerns over demand and AI investment timing.
3. Analyst Reactions & Stock Slide
Shares fell over 10% as Piper Sandler, Evercore and other firms lowered price targets by up to 33%, with ratings downgrades and reduced forecasts amplifying investor sell-off.