Workday stock falls after the company breezes past earnings and revenue estimates.
WDAY posts strong fiscal Q3 results as revenue and earnings beat estimates, driven by broad industry demand, new customer wins and rising subscription backlog.
Workday Inc (NASDAQ:WDAY) is down 7.6% to trade at $215.90, despite posting better-than-expected third-quarter results after Tuesday's close.
Workday Inc (NASDAQ:WDAY) shares slid 10.3% in early trading Wednesday, despite reporting stronger-than-expected quarterly earnings and revenue, as investors weighed concerns over the durability of growth in a slowing macroeconomic environment. The enterprise software company posted non-GAAP earnings per share of $2.32, beating analyst expectations by $0.15.
Workday, Inc. ( WDAY ) Q3 2026 Earnings Call November 25, 2025 4:30 PM EST Company Participants Justin Furby - Vice President of Investor Relations Carl Eschenbach - CEO & Director Zane Rowe - Chief Financial Officer Gerrit Kazmaier - President of Product & Technology Conference Call Participants Mark Murphy - JPMorgan Chase & Co, Research Division S. Kirk Materne - Evercore ISI Institutional Equities, Research Division Keith Weiss - Morgan Stanley, Research Division Michael Turrin - Wells Fargo Securities, LLC, Research Division Brent Thill - Jefferies LLC, Research Division Karl Keirstead - UBS Investment Bank, Research Division Bradley Sills - BofA Securities, Research Division Brad Zelnick - Deutsche Bank AG, Research Division Aleksandr Zukin - Wolfe Research, LLC Raimo Lenschow - Barclays Bank PLC, Research Division Kasthuri Rangan - Goldman Sachs Group, Inc., Research Division Presentation Operator Welcome to Workday's Third Quarter Fiscal Year 2026 Earnings Call.
Workday reported third-quarter subscription revenue in line with Wall Street estimates on Tuesday, signaling softer demand and sending its shares down nearly 7% in extended trading.
While the top- and bottom-line numbers for Workday (WDAY) give a sense of how the business performed in the quarter ended October 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Workday (WDAY) came out with quarterly earnings of $2.32 per share, beating the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $1.89 per share a year ago.
The company's results surpassed expectations for the fiscal third quarter, but quarterly margin guidance failed to meet expectations. Workday forecast a fourth-quarter adjusted operating margin of at least 28.5% and $2.355 billion in subscription revenue.
WDAY readies its Q3 report with revenue gains fueled by AI-driven demand, acquisitions and new partnerships lifting expectations.
Beyond analysts' top-and-bottom-line estimates for Workday (WDAY), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended October 2025.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?