Shares of Workday Inc (NASDAQ:WDAY) are down 10% in pre-open trading after the company provided disappointing long-term guidance at yesterday's Workday Rising event.
Workday said it now expects 17%-19% subscription revenue growth through to financial year 2027, which is below the Street consensus of 20.6% growth.
Bank of America analysts are understood to have lowered their price target to $260 from $275, while maintaining a 'buy' rating.
While noting the lower guidance, the analysts also said that given the tough macro environment, "a healthy degree of conservatism is built into the expectation".
Citi analysts are reported to have cut their price target to $236 from $247, while maintaining a 'neutral' rating.
"While the outlook is disappointing, we expect a portion is driven by macro and conservatism of a new team resetting expectations," the analysts commented.
At the company's annual customer conference, the company also unveiled a series of new artificial intelligence (AI) and machine learning (ML) capabilities and partner ecosystem updates to help businesses drive productivity, streamline business processes, empower their people, and make better decisions.