(Updates with the stock move in the headline and the first paragraph.)
Workday (WDAY) shares were down 8.5% in recent premarket activity Wednesday after the company's fiscal Q1 and 2027 subscription revenue outlook missed market expectations, wiping the shine off its Q4 beat.
The company reported fiscal Q4 non-GAAP net income late Tuesday of $2.47 per diluted share, up from $1.92 a year ago.
Analysts polled by FactSet expected $2.32.
Revenue for the quarter ended Jan. 31 was $2.53 billion, up from $2.21 billion a year earlier.
Analysts surveyed by FactSet expected $2.52 billion.
For fiscal Q1, the company expects subscription revenue of $2.335 billion. Analysts expect $2.35 billion.
For fiscal 2027, Workday expects subscription revenue of $9.925 billion to $9.950 billion. Analysts expect $9.99 billion.