Workday (WDAY) Ends 3-Day Run on Weak Outlook

Core Insights - Workday Inc. (NASDAQ: WDAY) experienced a significant decline in stock price, dropping 7.85% to $215.34, attributed to a weak outlook for fiscal year 2026 [1][3] - The company targets subscription revenue growth of 14.4% to $8.828 billion for the fiscal year ending January 2026, which is slightly adjusted from the previous forecast of $8.815 billion [2] - Workday reported a 30.6% increase in net income for the third quarter, reaching $252 million, and a 12.6% rise in revenues to $2.432 billion, driven by a 14.6% increase in subscription revenues [3][4] Financial Performance - For the nine-month period, Workday's net income rose by 26.8% to $548 million, while revenues increased by 12.6% to $7.02 billion [4] - The non-GAAP operating margin outlook remains steady at 29% [2] Management Commentary - CEO Carl Eschenbach highlighted the solid quarter performance, attributing it to the strength and diversity of the business and momentum in the AI portfolio [4]