Workday’s stock dropped to its lowest level in over five years after issuing a subdued sales outlook, intensifying concerns about the impact of artificial intelligence on traditional enterprise software.
The company projected slower subscription growth, with large deals in sectors such as government and healthcare taking longer to close.
Investor sentiment has been affected by the rising adoption of AI-driven tools that could reshape demand for established HR and payroll systems.
Despite highlighting ongoing investments in artificial intelligence, Workday faces broader industry pressures, including potential shifts in hiring trends linked to automation.
The performance decline reflects wider challenges across the software sector as companies reassess growth prospects in an evolving technological landscape.
