Workday(US:WDAY) CNBC·2025-11-25 22:19Core Insights - Workday's shares fell over 5% in extended trading after the company provided quarterly margin guidance below Wall Street expectations [1] - The company forecasted a fourth-quarter adjusted operating margin of at least 28.5% and $2.355 billion in subscription revenue, slightly above the consensus for revenue but below margin expectations [1] Financial Performance - Workday's revenue grew approximately 13% year over year for the quarter ending October 31, with net income rising to $252 million, or 94 cents per share, compared to $193 million, or 72 cents per share, in the same quarter last year [2] - Subscription revenue for the third quarter was $2.24 billion, with an adjusted operating margin of 28.5%, aligning with analyst expectations for revenue but slightly exceeding margin expectations [2] Strategic Developments - During the fiscal third quarter, Workday announced the introduction of artificial intelligence agents for employee performance analysis and financial health testing, and plans to acquire AI and learning software startup Sana for $1.1 billion [3] - Activist investor Elliott Management disclosed a stake in Workday valued at over $2 billion [3] Market Context - Workday's stock has declined by 9% in 2025 amid concerns regarding the impact of generative AI tools on the growth prospects of cloud software companies, while the Nasdaq Composite index has increased by 19% [4] - The company's adjusted earnings per share were reported at $2.32, surpassing the expected $2.18, and revenue was $2.43 billion, slightly above the anticipated $2.42 billion [4]