From CNBC: 2024-11-26 16:28:34

Workday shares dropped 8% after issuing a weaker-than-expected quarterly forecast. For Q4, the company projected a 25% adjusted operating margin on $2.03 billion in subscription revenue, falling short of analyst expectations of 25.5% margin and $2.04 billion revenue.

In the fiscal third quarter, Workday reported earnings per share of $1.89, beating expectations of $1.76. Revenue reached $2.16 billion, surpassing the $2.13 billion estimate. Total revenue grew 16% year over year, with subscription revenue at $1.96 billion, in line with analyst consensus.

Net income for the quarter was $193 million, or 72 cents per share, up from $114 million or 43 cents per share the previous year. The adjusted operating margin was 26.3%, higher than the expected 25.4%. Workday welcomed Rob Enslin as president and chief commercial officer.

During the quarter, Workday acquired Evisort and announced AI agents for HR and finance processes. The company’s shares were down 2% in 2024, while the S&P 500 index rose 26%. Executives will discuss the results in a conference call at 4:30 p.m. ET.



Read more at CNBC:: Workday (WDAY) Q3 earnings report 2025