BUZZ-Workday shares drop as fiscal 2027 forecast disappoints

Reuters02-25 17:11
BUZZ-<a href="https://laohu8.com/S/WDAY">Workday</a> shares drop as fiscal 2027 forecast disappoints

** Shares of human resources software provider Workday WDAY.O fall nearly 10% to $117.5 premarket

** Co on Tuesday forecast fiscal 2027 subscription revenue below Wall Street estimates, signaling slower new client wins as corporations scrutinize large software purchases amid economic uncertainty

** J.P. Morgan says Co-founder Aneel Bhusri's return as CEO signals pivot toward innovation and organic agent development, which he frames as WDAY's "Chapter 4," and we view his stated intent to “be conservative on the guide and then beat it” as consistent with co’s historical approach

** "While the FY27 guidance landing slightly below consensus will draw scrutiny, and the business is maturing, we appreciate that it will take time to assess whether any growth uplift can develop" - brokerage

** Co reported Q4 total revenue of $2.53 bln vs. analysts' estimates of $2.52 bln

** Following the results, at least seven brokerages slashed PT on the stock

** 42 analysts rate the stock "buy" on average; median PT is $200 - data compiled by LSEG

** WDAY down ~17% in 2025

(Reporting by Akriti Shah in Bengaluru)

((akriti.shah@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment