Aug 6 (Reuters) - Dayforce ( DAY ) on Wednesday beat

Wall Street expectations for second-quarter revenue and raised

its annual revenue forecast, benefiting from resilient spending

on its cloud-based human capital management (HCM) software.

Demand for the company's software services has been

stable as more enterprises increased their use of artificial

intelligence and cloud-based platforms to run day-to-day

operations.

However, some analysts have warned that moderating

employment trends and rising concerns about a deteriorating

labor market could hit the HCM industry, as companies pull back

spending due to the aggressive U.S. tariffs.

Dayforce's ( DAY ) shares have fallen more than 26% this year,

underperforming larger peers such as Paycom and

Automatic Data Processing ( ADP ).

U.S. employment growth was weaker than expected in July,

while the nonfarm payrolls count for the prior two months was

revised down by a massive 258,000 jobs, suggesting a sharp

decline in labor market conditions.

Dayforce's ( DAY ) second-quarter revenue of $464.7 million

surpassed analysts' average estimate of $457.8 million,

according to data compiled by LSEG.

The company raised its annual revenue forecast to a

range of $1.94 billion to $1.96 billion, from its prior

expectation of $1.93 billion to $1.94 billion.

It expects third-quarter revenue of $476 million to $486

million, compared with estimates of $483.2 million.

The company reported net income of 13 cents per share

for the second quarter, compared with a loss of 1 cent per share

a year ago.