Workday Gives Lackluster Growth Outlook Despite New AI Tools

Workday Inc. projected subscription revenue in the current quarter in line with Wall Street estimates, disappointing investors looking for the software company to get a boost from new artificial intelligence features for its products.

Subscription sales will be about $2.16 billion in the period ending in July, the Pleasanton, California-based company said Thursday in a statement. The company also affirmed its full-year subscription revenue outlook of $8.8 billion. Subscription revenue, which makes up more than 90% of the software company’s total sales, is one of the key metrics watched by investors.