Shares of Workday (WDAY) tumbled 6.81% in pre-market trading on Friday, following the company's first-quarter earnings report and second-quarter revenue guidance that fell short of analyst expectations. The human capital management software provider's outlook has raised concerns about potential slowing growth in the face of economic uncertainty.

While Workday's Q1 performance exceeded expectations with adjusted earnings per share of $2.23 against an analyst consensus of $2.01, and revenue of $2.24 billion slightly above the estimated $2.22 billion, it was the company's forward-looking statements that spooked investors. Workday projected second-quarter subscription revenue of $2.16 billion, which, although representing a 14% year-over-year increase, fell below the analyst estimates of $2.34 billion.

The company cited weakening client spending on its human capital management software due to economic uncertainty as a key factor in its conservative outlook. This cautious stance has led to a reassessment of Workday's growth prospects in the near term, prompting the significant pre-market decline. As businesses potentially tighten their budgets in response to economic headwinds, Workday's core offerings in HR and financial management software may face challenges in maintaining their previous growth trajectory.