(Reuters) -Dayforce reported third-quarter profit below analysts’ estimates on Wednesday, as uncertainty in the labor market and growing concerns over trade tariffs prompted companies to rein in software spending.

The results underscored the mixed picture facing the broader software sector, where stable subscription income has helped cushion weaker corporate budgets and a softening labor market.

Currently, Dayforce is in transition to be acquired by Thoma Bravo. The private equity firm agreed in August to buy the human resources software provide as part of its push to consolidate high-growth software businesses with strong recurring income.

Dayforce said it expects to close the transaction in late 2025 or early 2026.

The proposed deal has sparked debate among investors, with Dayforce’s

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