Workday, a cloud-based business applications company, saw its shares plunge after it issued a weaker-than-expected revenue outlook in its fourth-quarter results, CNBC reported on Monday.
Workday's revenue rose 14.5 percent in the fourth quarter last year and net profit improved, but investor anxiety is growing, CNBC reported.
Workday forecast fiscal 2027 revenue growth of 12 to 13 percent. The outlook fell short of expectations and appears to have contributed to the share decline.
Investors are worried that Workday's growth could slow as generative AI reshapes the software market, CNBC reported.
Workday shares fell 7 percent after the results announcement and are down 39 percent so far this year. That is the biggest drop since its 2012 listing, CNBC reported.
Workday recently announced a CEO change, with CEO Carl Eschenbach stepping down and co-founder Aneel Bhusri taking back the helm.
Chi-gyu Hwang
delight@d-today.co.kr