Workday Shares Drop 11% After Weak Q4 Forecast, Eyes U.S. Government Expansion For Future Growth.

Workday shares dropped 11% in after-hours trading Tuesday after issuing a weaker-than-expected Q4 forecast. The human resources and finance software maker exceeded analyst expectations for earnings per share and revenue in the third quarter. Workday's projected operating margin and subscription revenue fell slightly below analysts' expectations. The company highlighted challenges in certain global markets but expressed optimism about U.S. government opportunities. Workday shares are down 2% year-to-date, lagging the S&P 500’s 26% gain.