Workday Falls on Weak Outlook, Fueling Investors’ AI Concern

Workday Inc. shares dropped in late trading after the software company gave an outlook for quarterly subscription sales that fell just short of estimates, renewing investor anxiety about its ability to thrive in the AI era.

Subscription revenue will be about $2.34 billion in the period ending in April, Workday said Tuesday in a statement. Analysts, on average, estimated $2.35 billion, according to data compiled by Bloomberg. Subscription sales make up the bulk of Workday’s total revenue.