Dayforce Shares Drop 10% After Q2 Revenue Forecast Misses Expectations Despite Q1 Beat
Dayforce Inc. (DAY.N) saw its shares drop 10% on Wednesday after issuing a second-quarter revenue forecast that fell short of Wall Street expectations, despite reporting a better-than-expected Q1 performance.
The HR software provider, formerly known as Ceridian, expects Q2 revenue between $454 million and $460 million, below the $465.5 million consensus estimate compiled by LSEG. The company’s full-year revenue guidance of $1.93–$1.94 billion was roughly in line with expectations.
The cautious outlook contrasts with that of larger competitor ADP, which recently raised its annual revenue forecast on the back of strong enterprise demand and recent strategic acquisitions.
Dayforce posted Q1 revenue of $481.8 million, beating estimates of $476.7 million. Excluding float revenue—interest earned from holding funds before disbursement—the company reported $426.5 million in core revenue. Adjusted earnings for the quarter were 58 cents per share, above the expected 55 cents.
In February, Dayforce announced a 5% workforce reduction, aiming to cut annual costs by $65 million as part of its operational streamlining.
The company provides cloud-based payroll, workforce, and human capital management solutions to enterprise clients worldwide. Despite its strong Q1 results, the lower Q2 guidance may signal softer near-term demand or macroeconomic caution impacting deal flow and client expansion.