markets

Workday’s miserable year continues after soft revenue guidance sinks the stock

Workday slumped nearly 9% in after-hours trading Tuesday, and continued to languish in the red in early trading on Wednesday, after the HR and finance software company issued a lighter-than-expected subscription revenue outlook.

For the quarter ended January 31, subscription revenue — which makes up over 90% of total revenue — rose 15.7% year over year to $2.36 billion, in line with analysts' estimates, while adjusted earnings per share of $2.47 topped the $2.32 expected.

However, guidance for the coming quarter, ending April 2026, came in a hair below analysts’ estimates, as did projections for fiscal 2027 subscription revenue of $9.93 billion - $9.95 billion, below the roughly $10 billion estimate on Wall Street.

The outlook comes amid broader AI-driven anxiety among Software-as-a-Sevice (SaaS) companies, with investors questioning whether generative AI tools could displace traditional software vendors.

On the earnings call, CEO Aneel Bhusri pushed back on this narrative, arguing Workday's domains are "really, really hard to build." The company has been prioritizing investment in "agentic AI," with its annualized revenue from AI products now topping $400 million.

Still, shares are now down ~45% year-to-date, marking their sharpest annual decline since going public in 2012. All told, the stock is now 61% down from its all-time high.

More Markets

See all Markets

Is Nvidia dead money, or a coiled spring?

The stock has done next to nothing for five months. Stellar Q3 results and guidance failed to inspire a rally.

A Slinky is a precompressed helical spring toy invented by Richard James in the early 1940s

markets

President Trump announces data center electricity deals at State of the Union

President Donald Trump said during Tuesday's State of the Union address that he's struck agreements with tech companies to pay more for electricity in areas where they build data centers.

The "rate payer protection pledges" are intended to insulate consumers from higher bills in regions where new, power-hungry data centers are built. The White House earlier told Politico that they plan meant that tech giants would "pay their own way" and offset their demand for power causing electricity bills for all ratepayers to increase.

Some tech companies are already trying to get out in front of the public's negative perception of their surging electricity use, and Trump's criticism of it. In January, Microsoft committed to paying up for its data-center electricity use. That move came after criticism from the President. As part of the plan, Microsoft said it would ask utilities and public commissions to charge it rates hight enough to cover the costs of both data center installation and usage, and support two-tier pricing systems where “Very Large Customers” (like data centers) get charged higher prices.

Coming in to the end of 2025, utilities with a footprint on the countries largest utility grid, the PJM interconnection which serves vast swathes of the Eastern seaboard and Great Lakes region, like Talen Energy, Constellation Energy, and Vistra saw their share prices surge as electricity auction prices hit record highs. So far in 2026, however, that trade has largely reversed.

Trump tries to get ahead of voters’ grumbling on AI data costs

Some tech companies are already trying to get out in front of the public's negative perception of their surging electricity use, and Trump's criticism of it. In January, Microsoft committed to paying up for its data-center electricity use. That move came after criticism from the President. As part of the plan, Microsoft said it would ask utilities and public commissions to charge it rates hight enough to cover the costs of both data center installation and usage, and support two-tier pricing systems where “Very Large Customers” (like data centers) get charged higher prices.

Coming in to the end of 2025, utilities with a footprint on the countries largest utility grid, the PJM interconnection which serves vast swathes of the Eastern seaboard and Great Lakes region, like Talen Energy, Constellation Energy, and Vistra saw their share prices surge as electricity auction prices hit record highs. So far in 2026, however, that trade has largely reversed.

markets

Max Knoblauch16h

Lucid falls after Q4 earnings miss, lower than expected 2026 production guidance

Luxury EV maker Lucid reported its fourth-quarter earnings after the bell Tuesday, with shares off more than 3% on Wednesday morning.

The company posted an adjusted loss of $3.08 per share, wider than the $2.63 loss expected by analysts polled by FactSet. Lucid booked $522.7 million in revenue, beating the consensus estimate of $459.5 million.

Lucid issued a full-year 2026 production outlook of between 25,000 to 27,000 vehicles, far below analysts’ expectations for output above 33,000 vehicles.

The company also downwardly revised its full-year 2025 production numbers from 18,378 to 17,840 vehicles due to internal validation issues.

Lucid maintained the timeline for its unnamed midsize SUV, due to begin production later this year. That schedule puts it close to rival Rivian’s planned second-quarter release of its R2 SUV.

Management did not issue an update on its ongoing CEO search. The company has been led by interim CEO Marc Winterhoff for the past year, after it abruptly announced in its fourth-quarter 2024 report that then CEO Peter Rawlinson would step aside.

The stock has fallen to all-time lows this month and is down 98% from its high in 2021. Last week, the company announced it would lay off 12% of its US workforce in an effort to improve profitability.

markets

Matt Phillips16h

Tempus AI slides after missing Q4 EBITDA target

Cancer diagnostics company and sometimes retail shareholder favorite Tempus AI reported soft Q4 adjusted EBITDA numbers late Tuesday, sending shares lower in the after-hours session.

It reported:

Q4 revenue of $367.2 million vs. FactSet’s expectation of $362.8 million.
An adjusted loss per share of $0.04 vs. the $0.04 loss estimated.
Adjusted EBITDA of $12.9 million vs. expectations for $22 million, per FactSet.

Since going public in June 2024, Tempus has been a volatile stock that has both doubled — and cratered — on multiple occasions. That spectacle has at times captured the attention of retail traders who’ve tried to ride the waves.

Of late, the wave has been breaking bad, with shares down more than 30% since the stock hit a record high on October 8, 2025

Still, the company is now adjusted EBITDA positive. That, CEO Eric Lefkofsky told us last year, is the first milestone on Tempus’ journey to profitability, a mark that analysts think will take until at least next year for the company to hit.

Tasha Matsumoto

Stocks bounce back powered by tech rebound

Tech rose amid AMD and Meta’s chip deal, and software stocks recovered as investors shook off yesterday’s dystopian AI report.

Anfernee Simons #2 of the Chicago Bulls dribbles during the second half of their NBA game against the Toronto Raptors at Scotiabank Arena on February 5, 2026 in Toronto, Ontario, Canada.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.

©2026 Sherwood Media, LLC