Shares of Workday (WDAY) plunged 11% Friday, a day after the provider of human resources software didn't increase its full-year subscription revenue outlook as it faced what CFO Zane Rowe called an "uncertain environment."

The company affirmed its earlier guidance for fiscal 2026 subscription revenue of $8.80 billion, which was in line with Visible Alpha expectations, and raised its non-GAAP operating margin outlook to 28.5% from 28.0%.

CEO Carl Eschenbach said, "We're staying close to our customers as they navigate the macro environment. No company is immune to these challenges, and we’re watching it across particular markets."

In a note to clients, Bank of America wrote the outlook "is somewhat disappointing, though it does reflect an added degree of conservatism for potential macro pressure."

The news offset strong fiscal 2026 first-quarter results. Workday posted adjusted earnings per share of $2.23, with revenue rising 13% year-over-year to $2.24 billion. Subscription revenue grew 13% to $2.06 billion. All three exceeded analysts' estimates. 

Following the report, Workday shares slumped into negative territory for 2025.