Enterprise-software makers Workday Inc. and Intuit Inc. both topped earnings expectations for the latest quarter but issued guidance that fell short of Wall Street’s more optimistic assumptions, sending their shares lower in early New York trading on Friday. Workday reported fiscal second-quarter revenue of $2.35 billion, up 12.6 percent from a year earlier and slightly ahead of analysts’ estimates. Adjusted earnings rose 26 percent to $2.21 a share. While the human-resources software vendor reiterated its full-year outlook, Chief Executive Officer Carl Eschenbach cautioned that demand from government and education customers is softening, and the stock slid roughly 5 percent before the opening bell. Intuit, whose products include TurboTax and QuickBooks, said fiscal fourth-quarter revenue climbed 20 percent to $3.83 billion and adjusted earnings came in at $2.75 a share, both above consensus. However, the company projected full-year 2026 earnings before interest and taxes of $8.65 billion, below the $8.78 billion analysts expected, even as it forecast sales of about $21.1 billion in line with estimates. The cautious outlook triggered a pre-market drop of about 6 percent and prompted UBS to cut its price target to $725 from $750. The results underscore investors’ sensitivity to forward-looking commentary from software vendors as corporate and public-sector clients scrutinize spending plans amid an uncertain economic backdrop.
UBS Reduces Intuit's Price Target From $750 to $725 📉
$WDAY (-4.7% pre) Workday beats estimates but CEO warns of challenges in education and government https://t.co/ncwaHyjWp9
$INTU (-6.4% pre) Intuit Stock Tumbles After Q4 Beat As Cautious Full-Year Forecast Sparks Selling https://t.co/I9gtxKj6Bo