Workday Post Q4 Beat, guidance indicates another slowdown in revenue growth: Analysts – Workday (NASDAQ: WDAY)

Shares Workday Inc wday The company climbed in trading on Wednesday after reporting optimistic fourth-quarter results.

The result is in an exciting income season.

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Piper Sandler: Workday reported a 15.9% increase in subscription revenue. Bracelin said in a report that this is a steady increase compared to 15.8% in the previous quarter. He added that core clients grew by about 17% to 6,100, with more than 2,000 of which are full suite clients.

The remaining performance obligations or CRPOs are currently up 15% year-on-year. Bracelin attributes it to “an earlier update activity than expected.” However, the company’s 2026 growth outlook is 12.5% ​​”suggests that even the highest growth in F2025 is likely to be moderate for the third consecutive year (16.4% in v2025) even with a reiterated subscription revenue target of $8.8B.”

Needham: Workday reported revenue growth of 15% year-on-year, which was the driving force behind the 15.9% increase in subscription revenue. The company’s CRPO fell slightly from 15.4% in the previous quarter to 15.2% in the fourth quarter. However, it is much higher than 13.5%-14.5% guidance.

Analysts say they have been actively investing in AI on weekdays. He further wrote: “Sales review highlights the company’s growing AI opportunities and as adoption continues to rise rapidly, the company has launched four other role-based agents.”

JMP Securities: Workday reported revenue of $2.21 billion, subscription revenue of $2.04 billion, and non-GAAP revenue of $1.92 per share. Walravens said it exceeded the consensus of $2.18 billion, $20.3 billion and $1.78 per share, respectively. He added that management’s first-quarter guidance required $2.05 billion in subscription revenue, down from $2.06 billion in consensus.

Analysts said the company guided full-year subscription revenue was $880 billion, a year-on-year increase of 14%, and continues to align with the expectation line. “We continue to view workdays as an attractive opportunity for long-term capital appreciation.”

Price action: When published Wednesday, Workday shares rose 7.46% to $277.25.

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