Dow Recovers while WDAY Stock Heads to $100 – Workday FY27 Earnings Outlook Clouds Software Sector
The Dow Jones Industrial Average and Workday, Inc. moved in opposite directions, as equities rebounded broadly while Workday shares tumbled
Quick overview
- The Dow Jones Industrial Average and Workday, Inc. moved in opposite directions, with equities rebounding while Workday shares fell sharply after disappointing subscription revenue guidance.
- Major U.S. stock indices closed higher, signaling renewed investor appetite for risk ahead of key earnings reports.
- Workday's stock dropped around 8% despite an earnings beat, as its forward guidance indicated slower growth expectations.
- Attention now shifts to NVIDIA, whose upcoming earnings report could significantly influence market momentum.
Live DOW Chart
The Dow Jones Industrial Average and Workday, Inc. moved in opposite directions, as equities rebounded broadly while Workday shares tumbled after issuing softer subscription revenue guidance.
Broad Market Rebound
Major U.S. stock indices closed solidly higher, recovering from the prior session’s sharp selloff. Yesterday, the S&P 500 fell 1.04% and the Nasdaq dropped 1.12%, reflecting risk aversion and positioning ahead of key earnings.
Today, sentiment improved markedly. The S&P 500 rose 0.77%, the Nasdaq gained 1.04%, and the Dow advanced 0.76%. The Russell 2000 outperformed with a 1.12% increase, signaling renewed appetite for risk across small-cap names.
Dow Jones Chart Daily – Resuming the Uptrend
The rebound suggests that investors are repositioning ahead of a major earnings catalyst, with volatility likely to remain elevated.
Workday Slides on Slower Growth Outlook
Despite the broader rally, Workday shares plunged around 8% after the close following its earnings report. While the company delivered an adjusted earnings beat, forward guidance disappointed investors.
For the fourth quarter, Workday reported revenue of $2.53 billion, up 14.5% year over year and slightly above expectations of $2.52 billion. Subscription revenue reached $2.36 billion. Adjusted earnings per share came in at $2.47, topping estimates of $2.32.
WDAY Chart Monthly – Falling to 2020 Lows
However, subscription revenue guidance signaled deceleration. The company expects first-quarter subscription revenue of $2.335 billion and full-year subscription revenue between $9.92 billion and $9.95 billion—both below some investor expectations.
The softer outlook comes amid growing concerns that artificial intelligence could disrupt traditional enterprise software models, adding pressure to the sector.
Nvidia in Focus
Attention now turns to NVIDIA Corporation, which reports earnings after the close tomorrow. Shares rose 0.68% to $192.86, lifting the year-to-date gain to 3.41%.
Technically, Nvidia is pressing into a resistance zone between $193.63 and $196. A sustained breakout above this area could shift momentum decisively higher, opening the door toward the prior all-time high of $212.19.
On the downside, the 200-day moving average remains a critical support level after recent tests held firm.
Some big gainers today included:
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AMD (AMD): +8.77%
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Roblox (RBLX): +7.51%
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PayPal (PYPL): +6.74%
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Trump Media & Technology Group (DJT): +6.73%
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Intel (INTC): +5.73%
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Papa John’s (PZZA): +5.65%
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United Airlines (UAL): +5.06%
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Synopsys (SNPS): +4.73%
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Box (BOX): +4.54%
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Corning (GLW): +4.39%
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AMD (AMD) [+8.77%]: The primary driver is a multi-year deal worth up to $100 billion to supply Meta Platforms with its latest MI450 AI chips for data centers. As part of the agreement, Meta received warrants to purchase up to 160 million shares of AMD stock.
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PayPal (PYPL) [+6.74%]: Shares are surging due to takeover speculation that a strategic buyer or private equity firm is evaluating a bid for the company. This follows a recent leadership shakeup where Enrique Lores was named the new CEO.
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Corning (GLW) [+4.39%]: The stock is hitting all-time highs as analysts (UBS and Morgan Stanley) raised price targets, citing a “boom” in AI data center infrastructure. This momentum is heavily supported by a $6 billion fiber-optic deal with Meta.
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Trump Media & Technology Group (DJT) [+6.73%]: Gains are tied to its $6 billion merger with fusion energy/AI firm TAE Technologies and recent shareholder distributions of digital tokens. Investors are also reacting to anticipation surrounding tonight’s State of the Union address.
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Intel (INTC) [+5.73%]: Intel is benefiting from the broad tech recovery and rumors that Apple is considering using its foundry services to manufacture custom chips. The company also recently secured strategic investments from Nvidia and SoftBank
Conclusion: Equities staged an impressive rebound, but near-term direction may hinge on Nvidia’s earnings reaction. While the Dow and broader indices regained footing, Workday’s cautious outlook highlights ongoing AI-related uncertainty in software. Tomorrow’s results could determine whether the market pushes toward new highs or stalls near resistance.
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