Workday ($WDAY) reported lower renewal sizes due to fewer larger deals, especially in EMEA, and reduced headcount at customers impacting expectations. The company beat earnings but lowered full-year sales guidance citing increased scrutiny on large and new deals, particularly outside the US, notably in EMEA. Consequently, Workday shares fell significantly on a cautious outlook, with stock tumbling 9-11% post-announcement, reflecting mixed financial results and lower guidance. The warning signs of elevated sales scrutiny and slower customer headcount growth have raised concerns among software peers.