Dayforce Inc. (DAY) shares tumbled 5.48% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report. Despite posting solid Q1 results, the human capital management technology company's stock took a hit due to weaker-than-expected second-quarter guidance.

For the first quarter, Dayforce reported total revenue of $481.8 million and adjusted earnings per share of $0.58. While these figures demonstrated the company's continued growth, investors seemed more focused on the outlook for the coming months. Dayforce provided second-quarter revenue guidance of $454 million to $460 million, which fell short of analysts' expectations. According to LSEG IBES data, the consensus estimate for Q2 revenue was $465.5 million, above the company's projected range.

The discrepancy between the company's guidance and market expectations appears to be the primary driver behind the stock's pre-market decline. Despite the near-term concerns, Dayforce maintained its full-year 2025 revenue guidance of $1,929 million to $1,944 million, suggesting confidence in its long-term growth prospects. However, the market's immediate reaction indicates that investors are prioritizing the short-term outlook over the full-year projections.