Dayforce to Report Q3 Earnings: What's in Store for the Stock?

Dayforce DAY is scheduled to release third-quarter 2025 results on Oct. 29.

For the to-be-reported quarter, DAY expects revenues to be between $476 million and $486 million. Excluding float, total revenues range from $434 million to 444 million, an increase of 10.1% to 12.6% on a GAAP basis or approximately 11% to 13% on a constant currency basis.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $481.60 million, indicating a year-over-year increase of 9.45%. The consensus mark for earnings is pegged at 56 cents per share, unchanged over the past 30 days, indicating 19.15% year-over-year growth. 

Dayforce’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, resulting in an average surprise of 13.94%.

Dayforce, Inc. Price and EPS Surprise

Dayforce, Inc. price-eps-surprise | Dayforce, Inc. Quote

Let us see how things might have shaped up prior to the upcoming announcement.

Key Factors to Consider for DAY’s Q3 Earnings

Dayforce’s third-quarter 2025 results are expected to benefit from an expanding clientele and a rise in recurring revenue per customer. At the end of the second quarter of 2025 (June 30), 6,984 customers were live on the Dayforce platform, up 4.9% year over year. Recurring revenue per customer for the trailing 12 months hit $171,075, up 10.4% from the prior-year level.

The company expects recurring revenues excluding float to be between $329 million and $339 million, indicating growth of 12.7-16.1% on a GAAP basis or approximately 13-17% on a constant currency basis. This growth can be attributed to strong demand for full-suite solutions and AI-powered products. Float revenues are expected to contribute $42 million in the to-be-reported quarter, providing a stable source of income to support overall revenue growth.

DAY depends on its AI capabilities and regulatory support through tools like Dayforce AI Assistant (formerly Dayforce Co-Pilot). Introduction of Dayforce AI Assistant on Mobile for support on iOS and Android, enhancement in the Advanced Experience Hub with personalized updates, improved Dayforce Learning and Dayforce Recruiting workflows, and new direct-to-bank capabilities for Dayforce Wallet are notable developments in recent times. These advancements are expected to have reinforced platform adoption and contributed to top-line growth in the third quarter of 2025.

Dayforce is experiencing success across various regions, including the United States, Canada, Australia, New Zealand, the UK, and Germany. This global presence is likely to have offered diversification and chances for further growth in international markets in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.

Dayforce has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold) at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:

AMETEK AME currently has an Earnings ESP of +1.21% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMETEK shares have risen 3.8% year to date. AMETEK is set to report third-quarter 2025 results on Oct. 30.

Candence Design System CDNS currently has an Earnings ESP of 2.24% and a Zacks Rank of 2 at present. 

Candence shares have risen 14.9% year to date. Candence is set to report third-quarter 2025 results on Oct. 27.

Celestica CLS presently has an Earnings ESP of +2.49% and a Zacks Rank #2. 

Celestica shares have risen 221.4% year to date. Celestica is scheduled to report third-quarter 2025 results on Oct. 27.

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This article originally published on Zacks Investment Research (zacks.com).

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