Shares of Workday (WDAY) plunged 7.04% in pre-market trading on Friday, following the company's release of its second-quarter earnings report and third-quarter guidance. Despite beating analysts' expectations for Q2, Workday's outlook for the upcoming quarter fell short of Wall Street estimates, triggering a sell-off.

For the second quarter, Workday reported adjusted earnings of $2.21 per share, surpassing the consensus estimate of $2.11. Revenue climbed 13% year-over-year to $2.35 billion, slightly ahead of the expected $2.34 billion. However, investors focused on the company's third-quarter guidance, which projected subscription revenue of $2.235 billion, just below analysts' estimates of $2.237 billion.

Adding to the downward pressure, several analysts lowered their price targets for Workday stock. Oppenheimer cut its target to $270 from $300, while Citigroup reduced its target to $260 from $279. Other firms, including BMO Capital, Barclays, and Piper Sandler, also trimmed their price targets. The series of downgrades reflects growing concerns about Workday's near-term growth prospects in a challenging macroeconomic environment. Despite the price target reductions, many analysts maintained their overall positive ratings on the stock, citing Workday's strong market position and long-term potential in the HR software space.