Workday Slides 9.51% After Earnings Beat, Issues Soft Guidance
Workday shares plunged 9.51% after reporting beats on revenue and earnings yet issuing softer forward guidance. The decline occurred as U.S. stock futures rose and the 10-year Treasury yield steadied at 4.05%, with markets seeing a 98% likelihood of unchanged Fed rates in March.
1. Earnings Beat
Workday delivered revenue and adjusted EPS above analysts’ expectations for the quarter, driven by robust subscription growth and enterprise deal closures.
2. Guidance Revision
Management issued softer forward guidance, lowering its full-year billings growth target below consensus, citing concerns over slower demand.
3. Market Reaction
Shares plunged 9.51% despite the beat, while U.S. stock futures climbed and the 10-year Treasury yield held at 4.05% with markets pricing a 98% chance of unchanged March Fed rates.