Why is wday stock down

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Last updated: April 8, 2026

Quick Answer: Workday (WDAY) stock declined significantly on August 23, 2024, dropping approximately 15% in a single trading session after the company reported second-quarter fiscal 2025 results. The primary driver was lower-than-expected subscription revenue guidance for fiscal 2025, which management revised downward to $7.72-$7.73 billion from previous projections. Additionally, the company reported slowing subscription revenue growth of 17% year-over-year for Q2 2025, compared to 19% growth in the previous quarter, raising concerns about enterprise software demand.

Key Facts

Workday stock dropped approximately 15% on August 23, 2024
Company lowered fiscal 2025 subscription revenue guidance to $7.72-$7.73 billion
Q2 2025 subscription revenue grew 17% year-over-year, down from 19% in Q1
The decline followed Q2 2025 earnings report released August 22, 2024
Workday provides cloud-based human capital management and financial management software

Overview

Workday, Inc. (NASDAQ: WDAY) is a leading provider of enterprise cloud applications for human capital management (HCM), financial management, and analytics. Founded in 2005 by Dave Duffield and Aneel Bhusri, the company went public in October 2012 with an initial public offering price of $28 per share. Workday has grown to serve over 10,000 organizations worldwide, including more than 50% of the Fortune 500 companies. The company's software-as-a-service platform helps organizations manage critical business functions including payroll, talent management, financial planning, and analytics. As of August 2024, Workday had a market capitalization exceeding $60 billion and employed approximately 18,000 people globally. The company competes with traditional enterprise software vendors like Oracle and SAP, as well as newer cloud-based platforms in the HR and financial software markets.

How It Works

Workday's stock price decline in August 2024 resulted from a combination of financial performance factors and market reactions. The company reported second-quarter fiscal 2025 results on August 22, 2024, showing subscription revenue of $1.67 billion, representing 17% year-over-year growth. While this met analyst expectations, management lowered full-year subscription revenue guidance to $7.72-$7.73 billion from previous projections, citing slower-than-expected sales cycles and macroeconomic uncertainty affecting enterprise software spending. The stock market reacted negatively to this guidance revision, with investors concerned about decelerating growth in Workday's core HCM and financial management businesses. Additionally, the company's operating margin guidance remained unchanged at approximately 24.5%, suggesting limited near-term profitability improvement despite ongoing investments in artificial intelligence capabilities and international expansion.

Why It Matters

The Workday stock decline matters because it reflects broader trends in the enterprise software sector and provides insights into business technology spending patterns. As a bellwether for cloud-based business applications, Workday's performance signals how large organizations are investing in digital transformation amid economic uncertainty. The stock movement affects thousands of investors and employees, with Workday's market value decreasing by approximately $9 billion in the August 2024 decline. For customers, the company's financial health influences product development, support quality, and long-term viability of their HR and financial systems. The episode also highlights the importance of realistic guidance in maintaining investor confidence, as even established technology companies face challenges when growth expectations aren't met.