WDAY Shares Tumble On Weak FY27 Subscription Revenue Forecast — Retail Says Software Sector ‘Not Investable’

• Workday said its subscription revenues grew 15.7% to $2.36 billion in Q4.
• Workday reported revenues of $2.53 billion, an increase of 14.5% from the same period last year.
• The company also reported diluted net income per share of $2.47, while analysts expected the company to post net income of $2.32 per share.     

Workday Inc. (WDAY) shares declined more than 8% in Tuesday’s post-market hours despite the company reporting better-than-expected fourth-quarter (Q4) results on weak guidance for the upcoming fiscal year.

The company is expecting subscription revenues to grow 13% to $2.335 billion in the upcoming quarter, and to increase 12% to 13% in fiscal year 2027. This is lower than an increase of 14.5% in subscription revenue reported for fiscal year 2026.

Workday said its subscription revenues grew 15.7% to $2.36 billion in Q4.

Revenue And Earnings

Workday reported revenues of $2.53 billion, an increase of 14.5% from the same period last year, marginally above Wall Street estimates of $2.52 billion, as per data from Fiscal.ai.

The company also reported diluted net income per share of $2.47, compared to $1.92 in the same period last year. Meanwhile, analysts expected the company to post net income of $2.32 per share.     

"Our fourth quarter results reflect the deep trust customers place in Workday to manage their most critical assets," said Zane Rowe, CFO at Workday. "We are prioritizing investment in our agentic AI roadmap to capture a larger market opportunity," he added.

The results come soon after the company’s former CEO Carl Eschenbach stepped down and left the board earlier this month. Co-founder Aneel Bhusri stepped in as CEO, effective Feb. 9, 2026.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around WDAY shares was in ‘extremely bullish’ territory at the time of writing, amid ‘extremely high’ message volumes.

One bullish user said that the CEO implied on an investor call that the margins forecast is conservative.

However, another user highlighted the pressure in the overall software industry, saying the sector is not investable at the moment. The user suggested investing in semiconductor and data center companies instead, calling them ‘guaranteed winners.’

WDAY stock has declined more than 50% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on