WDAYWorkday demonstrates strong fundamental performance with consistent revenue growth and healthy profitability, supported by positive trends in cloud adoption. While valuation metrics are on the higher side, the company's market position and innovation pipeline provide a solid foundation. Technicals indicate a neutral to slightly bullish short-term outlook with potential for short-term volatility.
Workday is well-positioned to benefit from the ongoing digital transformation and the increasing adoption of cloud-based enterprise applications, particularly in HR and finance.
Workday exhibits strong revenue growth and improving profitability, supported by a solid balance sheet. However, the P/E ratio indicates a premium valuation.
Workday's stock is trading below key moving averages, indicating a bearish short-term trend. While some oscillators suggest potential oversold conditions, the overall technical picture warrants caution for short-term traders.
| Factor | Score |
|---|---|
| Cloud Adoption | 90 |
| Digital Transformation | 85 |
| AI & Automation in Enterprise | 80 |
| Talent Management & HR Tech | 88 |
| Economic Sensitivity | 60 |
| Factor | Score |
|---|---|
| Valuation | 40 |
| Profitability | 70 |
| Growth | 85 |
| Balance Sheet Health | 85 |
| Cash Flow | 90 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Volume Confirmation | 70 |
| Support & Resistance | 65 |
Consistent EPS Beat
Workday has consistently exceeded EPS estimates for the past several quarters, with the most recent quarter showing a 11.17% positive surprise. This indicates strong operational execution and effective cost management.
Growth-Oriented Valuation Metrics
The Price-to-Sales (P/S) ratio is 7.3, which, while seemingly high, should be considered in the context of Workday's significant revenue growth and its position in the enterprise cloud applications market. Further analysis of industry comparables is recommended.
High P/E Ratio
The trailing Price-to-Earnings (P/E) ratio of 131.05 is significantly high, suggesting that investors are paying a premium for each dollar of earnings. This could limit upside potential if earnings growth does not meet expectations.
Decelerating Revenue Growth
While revenue grew to $8.45 billion in 2025Q1, the net margin for the same period is 4.3%, a decline from 19.0% in 2024Q1, indicating potential margin compression despite revenue increases.
August 2025
20
Next Earnings Date
H: $2.31
A: $2.11
L: $1.87
H: 2.36B
A: 2.34B
L: 2.33B
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contract management, build and execute sourcing events, such as requests for proposals, and manage indirect spend; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; Workday Extend for customers and their developers to build custom applications; and Workday Illuminate, which helps customers accelerate manual tasks, assist employees, and transform business processes. The company serves the professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. It sells its solutions through its direct sales organization. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.
296.88 USD
The 39 analysts offering 1 year price forecasts for WDAY have a max estimate of 340.00 and a min estimate of 235.00.