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Workday, Inc.

NASDAQ: WDAY

Stock price

186.28 USD

(-31.57%) 5 years

Application SoftwareSoftware - Application

Financial Performance

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5Y price score: (45)

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The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 109.9%

DATE RANGE:

US$ Per
Share

272.20

186.28

  • Earnings per share

  • Free cash flow per share

  • Stock price

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110.3

52-week range

249.8

186.28

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Required return / cost of capital
%
FCFF terminal growth rate
%

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

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FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

5.9 %

Dividend Yield TTM

-

Market cap $

$ 48,795

Price / Earnings TTM

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P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

37.8

Price / Book TTM

7.2

PEG TTM

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Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

0.2

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

(19.6) %

(31.6) %

109.9 %

Free cash flow per share growth

(15.5) %

146.9 %

1,503 %

Earnings per share growth

206 %

316.8 %

268.6 %

Founded: 2,005

Employees: 20,482

Business Summary:Workday, Inc. delivers comprehensive, cloud-hosted enterprise software solutions to clients worldwide. These platforms empower organizations to strategize, operate, examine performance, integrate with existing systems, and oversee their overall business functions. A core offering includes a robust suite of financial management tools. These are designed to assist Chief Financial Officers (CFOs) in meticulously maintaining general ledger accounting data, streamlining financial workflows, gaining instant insights into financial and operational metrics, optimizing consolidation, accelerating month-end closes, bolstering internal controls and audit readiness, and ensuring uniformity throughout their financial activities. Workday also provides cloud-based spend management solutions. These facilitate smoother supplier engagement and contract administration, optimize the handling of indirect expenditures, and enable the effective execution of sourcing initiatives, including requests for proposals (RFPs). Its Human Capital Management (HCM) platform stands out, offering a comprehensive set of applications for overseeing the entire employee journey—from initial recruitment through to retirement. This empowers HR departments to efficiently handle hiring, onboarding, payroll, talent development, reskilling programs, and to cultivate exceptional employee experiences. Furthermore, the company offers dedicated applications for business planning, alongside powerful analytics and reporting capabilities. These advanced tools feature augmented analytics that translate complex data into easily digestible narratives for business users, leverage machine learning for enhanced operational efficiency and automation, and provide benchmarking features to compare performance against industry peers. Workday's diverse clientele spans numerous sectors, including professional and business services, financial institutions, healthcare providers, educational bodies, government agencies, technology firms, media organizations, retailers, and the hospitality industry. Originally incorporated in 2005 as North Tahoe Power Tools, Inc., the company adopted the name Workday, Inc. in July of the same year. Its corporate headquarters are located in Pleasanton, California.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2027 Q2 (Aug 27, 2026)

1) Strategy & Leadership
- Aneel Bhusri, CEO, emphasized the importance of AI in driving growth, reporting over $100 million in new Annual Contract Value (ACV) from AI products, which accounted for more than 25% of all new ACV in Q2.
- Workday's strategy focuses on integrating both organic and acquired AI agents into its platform, enhancing customer experience and operational efficiency.
- The company is seeing strong customer adoption, with over 5,500 customers using at least one organic agent, a 35% increase from the previous quarter.
- The upcoming Workday Rising event will showcase significant innovations and serve as a platform for the Financial Analyst Day.

2) Financial & Segment Results
- Total revenue for Q2 was $2.649 billion, up 13% YoY, with subscription revenue at $2.407 billion, a 14% increase.
- Professional services revenue was $178 million.
- The 12-month subscription revenue backlog (CRPO) reached $9.03 billion, a 14.2% increase YoY, driven by existing customer expansion and new logos.
- Non-GAAP operating income was $824 million, representing a 31.1% operating margin, with a GAAP operating margin impacted by a nonrecurring tax benefit.

3) Operational & Product Plans
- Workday's AI initiatives are gaining traction, with nearly $600 million in ARR from AI products, up over 200% YoY.
- Key innovations include the Sana Enterprise AI workbench and adaptive decision intelligence, which are designed to enhance HR, finance, and IT operations.
- The company is focusing on increasing adoption of its AI agents, with significant early success in customer engagement and usage metrics.
- Workday is also enhancing its platform's openness and extensibility, allowing third-party integrations and custom applications.

4) Guidance & Outlook
- For FY 2027, Workday expects subscription revenue between $9.94 billion and $9.95 billion, reflecting a growth rate of 13%.
- Q3 subscription revenue is projected at approximately $2.515 billion, with CRPO growth anticipated at 11% to 12%.
- The company is increasing its FY 2027 non-GAAP operating margin guidance to 31%, with expectations for continued margin expansion in FY 2028.
- Workday is optimistic about the demand for its AI solutions, which are expected to significantly contribute to revenue growth in the coming years.

5) Problems / Headwinds
- The earnings call did not address specific challenges or headwinds faced by Workday, such as competitive pressures or market conditions that could impact future performance.
- There was a focus on the positive momentum and customer adoption of AI products, but no detailed discussion of potential risks or uncertainties.

Bottom line: Workday is experiencing robust growth driven by its AI initiatives, with strong customer adoption and innovative product offerings. The company is well-positioned for continued revenue expansion and margin improvement, making it an attractive investment opportunity for shareholders.

Annual Reports, Presentations And IR Contacts

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Workday, Inc. — Financial Overview, Stock Price, Market Cap

Workday, Inc. is a company. Founded in 2005. As of September 9, 2026, the company's market capitalization is $48794575692 with a current stock price of $186.28.