Workday shares slipped as much as 11% in extended trading Tuesday after the human resources and finance software maker issued a quarterly forecast that came in below Wall Street projections.

For the fiscal fourth quarter, Workday called for an adjusted operating margin of 25% on $2.03 billion in subscription revenue. Analysts polled by StreetAccount were looking for a 25.5% margin and $2.04 billion in subscription revenue.

Here’s how the company performed during the fiscal third quarter compared with the consensus among analysts surveyed by LSEG:

• Earnings per share: $1.89 adjusted vs. $1.76 expected
• Revenue: $2.16 billion vs. $2.13 billion expected

Workday’s total revenue grew about 16% year over year in the quarter ended Oct. 31, according to a statement. Subscription revenue totaled $1.96 billion, up around 16%, consistent with the $1.96 billion consensus among analysts surveyed by StreetAccount.

The company reported net income of $193 million or 72 cents per share, up $114 million or 43 cents per share in the same quarter a year ago. The adjusted operating margin for the quarter was 26.3%. StreetAccount had expected 25.4%.

In some parts of the world, Workday is still facing more deal scrutiny than usual, Workday’s finance chief, Zane Rowe, said on a conference call with analysts.

Now the company is looking to grow its business in the U.S. government, CEO Carl Eschenbach said. “We think there’s a huge opportunity there with probably more than 80% of HCM and ERP still on premises,” he said, referring to human capital management and enterprise resource planning.

Earlier this month, President-elect Donald Trump announced plans for an advisory panel called the “Department of Government Efficiency.”

“People are absolutely looking to drive more economies of scale and more efficiency,” Eschenbach said.

Workday said Rob Enslin, the former Google and SAP executive who stepped down as UiPath CEO in June, was joining as president and chief commercial officer. In October, Workday told employees that Doug Robinson, a co-president, will retire.

During the quarter, Workday acquired contract lifecycle management software startup Evisort. Workday also said artificial intelligence agents for spotting inefficiencies, filing expense reports and updating succession plans would become available in early access in 2025.

“We think they’re going to have a nice impact on bookings and revenue as we go into the new year,” Eschenbach said.

Rowe called for $8.8 billion in fiscal year 2026 subscription revenue, good for 14% growth.

As of Tuesday’s close, Workday shares were down 2% in 2024, while the S&P 500 index had gained 26%.

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