Workday, Inc. (WDAY) AI Stock Analysis

Workday, Inc. is a provider of enterprise cloud applications designed to help organizations strategize, execute, analyze, and integrate operations. Its suite of financial management applications helps CFOs maintain accounting accuracy, manage internal controls, gain real-time insights, and support financial consolidation. The company also provides cloud spend management solutions for supplier selection and contract sourcing. Its Human Capital Management suite covers the full employee lifecycle, including hiring, onboarding, payroll, skill development, and employee experience. Additionally, Workday provides planning, analytics, and reporting applications powered by augmented analytics and machine learning across diverse industries like healthcare, education, and financial services.

Workday grew revenue from $5.14B in FY2022 to $9.55B in FY2026, delivering a 5-year revenue CAGR of 17.2%. Annual revenue growth slowed from 21.0% in FY2023 to 13.1% in FY2026. Operating margins expanded over this period, shifting from -2.3% in FY2022 to 10.7% in FY2026. Net income reached $693.0M in FY2026 with diluted EPS of $9.23, compared to net income of -$367.0M in FY2023. Over the trailing twelve months ending July 31, 2026, revenue stood at $10.15B with an operating margin of 11.8%. In the latest quarter, quarterly revenue grew 12.8% year-over-year while quarterly earnings expanded 206.0%.

As of July 31, 2026, Workday held $3.40B in cash and short-term investments against total debt of $3.77B, leaving net debt at $369.0M. The company has a current ratio of 0.91 and a debt-to-equity ratio of 0.58 on shareholders' equity of $6.46B. In FY2026, Workday generated operating cash flow of $2.94B and free cash flow of $2.78B while spending $162.0M on capital expenditures. It allocated $2.90B to share buybacks, reducing its 5-year share count by 1.8%.

Workday trades at a trailing P/E of 38.9x and a forward P/E of 17.7x, both below the median of its Nasdaq-100 Technology peers of 43.3x and 25.7x, respectively. Its price-to-sales multiple is 4.5x compared to 12.4x for the peer median, and EV/EBITDA is 26.6x versus 32.8x for peers. Over the trailing 1-year period, Workday fell 16.2% while the S&P 500 (SPY) gained 16.8%. Over 5 years, the stock returned -29.6% compared to an 83.0% gain for the index.

Wall Street analysts hold 14 Strong Buy, 5 Buy, 20 Hold, 2 Sell, and 1 Strong Sell ratings on Workday. The mean price target of $207.92 represents a 9.0% premium over the last close of $190.81. Workday beat earnings estimates in each of the last 4 quarters. For the fiscal year ending January 31, 2027, consensus estimates project EPS of $11.08 on revenue of $10.67B. The company is scheduled to report earnings next on November 24, 2026.

This page is an AI-written research summary of Workday, Inc. (WDAY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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