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On May 23, 2025, Workday's stock experienced a significant drop of 6.35% in pre-market trading, reflecting investor concerns and market sentiment.
Workday's first-quarter earnings for fiscal year 2026 exceeded expectations, but the company's guidance for the future was met with caution. This cautious outlook contributed to the stock's decline, as investors reassessed the company's growth prospects.
Despite the recent drop, Workday's stock has shown resilience, recovering from previous weaknesses and posting a 25% gain over the past month. This recovery indicates that investors still have confidence in the company's long-term potential.
In response to the market's reaction, Workday's Board of Directors approved a new share repurchase program, authorizing the company to repurchase up to an additional $1.0 billion of its Class A shares. This move is aimed at returning value to shareholders and stabilizing the stock price.

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