Workday (NASDAQ:WDAY) Announces Earnings Results

Workday (NASDAQ:WDAY) released its quarterly earnings data on Tuesday. The software maker reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.32 by $0.15, FiscalAI reports. Workday had a net margin of 6.95% and a return on equity of 10.50%. The firm had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.52 billion. During the same quarter in the prior year, the company posted $1.92 earnings per share. The business’s revenue was up 14.5% on a year-over-year basis.

Here are the key takeaways from Workday’s conference call:

• Workday is pivoting to an AI-first “chapter four,” planning to marry its deterministic HR/finance core with domain-specific LLMs and agentic workflows to drive new product-led growth.
• Fiscal 2026 showed solid fundamentals — Q4 subscription revenue of $2.36B, full-year subscription revenue of $8.833B, CRPO up ~15.8% to $8.83B, ~30% non-GAAP operating margin, strong operating cash flow, and $2.9B of share buybacks in FY26.
• FY27 guidance is conservative as Workday prioritizes accelerated AI investment — subscription revenue guide of $9.925B–$9.95B (12%–13% growth) and ~30% non-GAAP margin, signaling near-term tradeoffs between growth re-acceleration and margin expansion.
• Early AI commercialization shows traction — Workday recorded 1.7 billion AI actions in FY26, >$100M of new ACV from emerging AI products in Q4 (100% YoY), >$400M ARR from these solutions, Sana Core/Enterprise moved to GA, and customers report meaningful ROI (e.g., ~25% HR case reduction).
• Execution and timing risks remain — a one‑time DIA contract boosted Q4, some large net‑new deals (Fed, SLED, Healthcare and parts of commercial) elongated into FY27, and average contract duration fell, which contributed to cautious near‑term visibility.

Workday Trading Up 0.8%

Shares of Workday stock opened at $130.23 on Wednesday. The firm has a market cap of $34.25 billion, a PE ratio of 54.72, a P/E/G ratio of 1.11 and a beta of 1.13. Workday has a 1 year low of $125.83 and a 1 year high of $281.00. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.83 and a quick ratio of 1.83. The stock has a fifty day moving average price of $184.46 and a 200-day moving average price of $213.51.

Insider Buying and Selling

In related news, insider Gerrit S. Kazmaier sold 6,547 shares of Workday stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $218.77, for a total value of $1,432,287.19. Following the sale, the insider owned 111,353 shares of the company’s stock, valued at approximately $24,360,695.81. The trade was a 5.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Zane Rowe sold 6,000 shares of the company’s stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $208.75, for a total value of $1,252,500.00. Following the completion of the transaction, the chief financial officer owned 159,158 shares in the company, valued at approximately $33,224,232.50. The trade was a 3.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 370,321 shares of company stock worth $78,866,401 in the last ninety days. Corporate insiders own 20.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of WDAY. Rakuten Securities Inc. purchased a new position in Workday during the second quarter worth about $25,000. Measured Wealth Private Client Group LLC purchased a new position in shares of Workday during the third quarter worth about $26,000. JPL Wealth Management LLC purchased a new position in shares of Workday during the third quarter worth about $30,000. Quarry LP bought a new position in shares of Workday in the fourth quarter worth approximately $36,000. Finally, Aster Capital Management DIFC Ltd purchased a new stake in Workday in the fourth quarter valued at approximately $38,000. 89.81% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

WDAY has been the subject of a number of analyst reports. Oppenheimer cut their price target on Workday from $270.00 to $200.00 and set an “outperform” rating for the company in a research note on Tuesday, February 17th. JPMorgan Chase & Co. dropped their target price on Workday from $270.00 to $230.00 and set an “overweight” rating on the stock in a report on Tuesday. Robert W. Baird set a $195.00 price target on Workday in a report on Tuesday. Stifel Nicolaus set a $175.00 price target on Workday in a research report on Monday, February 9th. Finally, KeyCorp cut their price objective on shares of Workday from $285.00 to $260.00 and set an “overweight” rating on the stock in a report on Wednesday, November 26th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and thirteen have given a Hold rating to the company. According to data from MarketBeat.com, Workday has a consensus rating of “Moderate Buy” and an average price target of $240.25.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday beat expectations for the quarter — revenue of ~$2.53B and non‑GAAP EPS of $2.47 topped Street forecasts, and fiscal 2026 results showed solid revenue and operating cash flow growth. Workday Announces Fiscal 2026 Fourth Quarter and Full Year Financial Results
• Positive Sentiment: Management is emphasizing AI (including “agentic” AI) as a growth catalyst and is investing to build differentiated AI capabilities — a positive strategic signal for long‑term revenue potential if product adoption follows. Workday’s CEO is leaning into agentic AI
• Neutral Sentiment: Some analysts remain constructive (JPMorgan kept an overweight rating while trimming its price target), showing divergent views on valuation vs. near‑term risk. Benzinga: JPMorgan updates
• Neutral Sentiment: Trading volume spiked versus average as the print and guidance drove active re‑pricing — higher volume increases short‑term volatility but also improves liquidity. MarketBeat WDAY page
• Negative Sentiment: Workday guided fiscal‑2027 subscription revenue below Wall Street estimates and said subscription growth will slow (guide ~12%–13%), signaling weaker new‑client wins as corporate tech spending softens. Workday forecasts 2027 annual subscription revenue below estimates (Reuters)
• Negative Sentiment: Margin outlook disappointed: Workday flagged higher near‑term investment to compete in AI, which pressured adjusted operating income expectations and contributed to the selloff. Workday’s stock dives as earnings reveal the cost of competing in AI (MarketWatch)
• Negative Sentiment: The market reaction was sharp: shares fell ~7–8% in after‑hours trading on the weak FY27 outlook, and a few brokers (including Jefferies) downgraded or cut targets ahead of the print — increasing near‑term downside risk. WDAY shares tumble nearly 8% after-hours on weak FY27 guidance (MSN) Jefferies downgrades Workday (MSN)

Workday Company Profile

Workday, Inc (NASDAQ: WDAY) is a provider of cloud-based enterprise applications focused on human capital management (HCM) and financial management. Founded in 2005 by Dave Duffield and Aneel Bhusri following their tenure at PeopleSoft, the company develops software-as-a-service solutions that help organizations manage workforce and financial processes in a unified, cloud-native environment. Workday’s platform emphasizes continuous updates, data security, and a configurable architecture aimed at large and mid-sized enterprises.

The company’s product portfolio centers on Workday Human Capital Management and Workday Financial Management, with additional offerings for payroll, talent management, workforce planning and analytics.