WDAY Stock Analysis: Workday | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 30.677m USD | 12M Return: -49% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 671M
EPS Trend: 37.7%
Qual. Beats: 13
Rev. Trend: 99.8%
Qual. Beats: 3
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Workday, Inc. is a U.S.-based provider of enterprise cloud applications sold primarily through a direct sales force, serving customers across professional services, financial services, healthcare, manufacturing, media, education, government, technology, retail, and hospitality. Its product suite centers on financial management (accounting, payables/receivables, consolidation, and audit controls), human capital management (hiring, onboarding, payroll, and employee development), spend and expense management, enterprise planning, and industry-specific extensions such as healthcare supply chain and education student lifecycle solutions. The company also offers Workday Extend, allowing customers and developers to build custom applications on its platform.
The business operates on a subscription-based software-as-a-service (SaaS) model, generating recurring revenue by licensing its cloud applications to large organizations. Headquartered in Pleasanton, California, Workday was incorporated in 2005 (formerly North Tahoe Power Tools, Inc.) and is listed on NASDAQ under the ticker WDAY within the Application Software sub-industry of the Information Technology sector. Its target customer base consists of medium-to-large enterprises that centralize finance, HR, and planning functions on a unified cloud platform.
- Subscription revenue growth beats consensus on enterprise demand
- Oracle and SAP competition intensifies in cloud HCM market
- AI product innovation drives new customer wins and contract sizes
| Net Income: 847.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 4.99 > 1.0 |
| NWC/Revenue: 0.58% < 20% (prev 56.05%; Δ -55.47% < -1%) |
| CFO/TA 0.20 > 3% & CFO 3.18b > Net Income 847.0m |
| Net Debt (269.0m) to EBITDA (1.67b): 0.16 < 3 |
| Current Ratio: 1.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (254.3m) vs 12m ago -5.91% < -2% |
| Gross Margin: 75.77% > 18% (prev 75.66%; Δ 0.11% > 0.5%) |
| Asset Turnover: 59.18% > 50% (prev 50.52%; Δ 8.65% > 0%) |
| Interest Coverage Ratio: 11.78 > 6 (EBIT TTM 1.32b / Interest Expense TTM 112.0m) |
| A: 0.00 (Total Current Assets 6.59b - Total Current Liabilities 6.54b) / Total Assets 16.1b |
| B: -0.02 (Retained Earnings -290.0m / Total Assets 16.1b) |
| C: 0.08 (EBIT TTM 1.32b / Avg Total Assets 16.7b) |
| D: 0.71 (Book Value of Equity 6.68b / Total Liabilities 9.41b) |
| Altman-Z'' = 1.24 = BB |
| DSRI: 0.97 (Receivables 1.57b/1.43b, Revenue 9.85b/8.70b) |
| GMI: 1.00 (GM 75.66% / 75.77%) |
| AQI: 1.36 (AQ_t 0.48 / AQ_t-1 0.35) |
| SGI: 1.13 (Revenue 9.85b / 8.70b) |
| TATA: -0.14 (NI 847.0m - CFO 3.18b) / TA 16.1b) |
| Beneish M = -2.75 (Cap -4..+1) = A |
As of July 01, 2026, the stock is trading at USD 122.42 with a total of 2,890,916 shares traded. Over the past week, the price has changed by +6.33%, over one month by -22.14%, over three months by -5.77% and over the past year by -48.99%.
Current recommended Stop Loss: 113.30 (which is 7.4% or 1.3 ATR below the current price).
Workday has received a consensus analysts rating of 4.05. Therefore, it is recommended to buy WDAY.
- StrongBuy: 18
- Buy: 7
- Hold: 16
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 171.1 | 39.8% |
P/E Trailing = 38.8156
P/E Forward = 11.6959
P/S = 3.1131
P/B = 4.5902
P/EG = 0.4883
Revenue TTM = 9.85b USD
EBIT TTM = 1.32b USD
EBITDA TTM = 1.67b USD
Long Term Debt = 1.99b USD (from longTermDebt, last quarter)
Short Term Debt = 1.13b USD (from shortTermDebt, last quarter)
Debt = 4.62b USD (from shortLongTermDebtTotal, last quarter) + Leases 817.0m
Net Debt = 269.0m USD (calculated: Debt 4.62b - CCE 4.35b)
Enterprise Value = 30.9b USD (30.7b + Debt 4.62b - CCE 4.35b)
Interest Coverage Ratio = 11.78 (Ebit TTM 1.32b / Interest Expense TTM 112.0m)
EV/FCF = 10.41x (Enterprise Value 30.9b / FCF TTM 2.97b)
FCF Yield = 9.60% (FCF TTM 2.97b / Enterprise Value 30.9b)
FCF Margin = 30.16% (FCF TTM 2.97b / Revenue TTM 9.85b)
Net Margin = 8.60% (Net Income TTM 847.0m / Revenue TTM 9.85b)
Gross Margin = 75.77% ((Revenue TTM 9.85b - Cost of Revenue TTM 2.39b) / Revenue TTM)
Gross Margin QoQ = 76.24% (prev 75.87%)
Tobins Q-Ratio = 1.92 (Enterprise Value 30.9b / Total Assets 16.1b)
Interest Expense / Debt = 2.42% (Interest Expense 112.0m / Debt 4.62b)
Taxrate = 32.83% (414.0m / 1.26b)
NOPAT = 886.0m (EBIT 1.32b * (1 - 32.83%))
Current Ratio = 1.01 (Total Current Assets 6.59b / Total Current Liabilities 6.54b)
Debt / Equity = 0.69 (Debt 4.62b / totalStockholderEquity, last quarter 6.68b)
Debt / EBITDA = 0.16 (Net Debt 269.0m / EBITDA 1.67b)
Debt / FCF = 0.09 (Net Debt 269.0m / FCF TTM 2.97b)
Total Stockholder Equity = 8.13b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.09% (Net Income 847.0m / Total Assets 16.1b)
RoE = 10.41% (Net Income TTM 847.0m / Total Stockholder Equity 8.13b)
RoCE = 13.03% (EBIT 1.32b / Capital Employed (Equity 8.13b + L.T.Debt 1.99b))
RoIC = 8.69% (NOPAT 886.0m / Invested Capital 10.2b)
WACC = 7.71% (E(30.7b)/V(35.3b) * Re(8.63%) + D(4.62b)/V(35.3b) * Rd(2.42%) * (1-Tc(0.33)))
Discount Rate = 8.63% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -28.89 | Cagr: -2.44%
[DCF] Terminal Value 77.97% ; FCFF base≈2.71b ; Y1≈3.11b ; Y5≈4.57b
[DCF] Fair Price = 341.1 (EV 68.8b - Net Debt 269.0m = Equity 68.6b / Shares 201.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 37.69 | EPS CAGR: 7.24% | SUE: 4.0 | # QB: 13
Revenue Correlation: 99.80 | Revenue CAGR: 14.95% | SUE: 2.95 | # QB: 3
EPS current Quarter (2026-07-31): EPS=2.61 | Chg30d=-0.02% | Revisions=+24% | Analysts=37
EPS next Quarter (2026-10-31): EPS=2.63 | Chg30d=-0.21% | Revisions=+13% | Analysts=36
EPS current Year (2027-01-31): EPS=10.73 | Chg30d=+0.08% | Revisions=+48% | GrowthEPS=+16.3% | GrowthRev=+11.7%
EPS next Year (2028-01-31): EPS=12.64 | Chg30d=+0.37% | Revisions=+63% | GrowthEPS=+17.8% | GrowthRev=+11.0%
[Analyst] Revisions Ratio: +63%