Workday (NASDAQ:WDAY) Announces Earnings Results, Misses Expectations By $1.27 EPS

Workday (NASDAQ:WDAY) announced its earnings results on Tuesday. The software maker reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.75 by ($1.27), Zacks reports. Workday had a net margin of 19.86% and a return on equity of 6.13%. Workday updated its FY 2026 guidance to EPS and its Q1 2026 guidance to EPS.

Workday Stock Down 2.5 %

NASDAQ WDAY traded down $6.59 during trading hours on Tuesday, reaching $255.22. 4,791,025 shares of the company’s stock traded hands, compared to its average volume of 2,208,784. Workday has a 52-week low of $199.81 and a 52-week high of $311.28. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.05 and a quick ratio of 2.05. The firm has a 50-day simple moving average of $260.42 and a 200 day simple moving average of $253.82. The firm has a market cap of $67.89 billion, a PE ratio of 42.33, a PEG ratio of 3.55 and a beta of 1.35.

Insider Buying and Selling at Workday

In other Workday news, CEO Carl M. Eschenbach sold 6,250 shares of the firm’s stock in a transaction dated Monday, January 6th. The shares were sold at an average price of $253.86, for a total transaction of $1,586,625.00. Following the completion of the sale, the chief executive officer now directly owns 13,972 shares in the company, valued at approximately $3,546,931.92. This trade represents a 30.91 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder David A. Duffield sold 56,000 shares of Workday stock in a transaction dated Monday, January 13th. The stock was sold at an average price of $246.42, for a total transaction of $13,799,520.00. Following the completion of the transaction, the insider now directly owns 60,000 shares of the company’s stock, valued at $14,785,200. This trade represents a 48.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 438,819 shares of company stock valued at $113,142,592. Corporate insiders own 20.00% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. The Goldman Sachs Group upped their target price on shares of Workday from $300.00 to $310.00 and gave the stock a “buy” rating in a research report on Thursday, February 6th. JMP Securities reiterated a “market outperform” rating and issued a $315.00 price objective on shares of Workday in a report on Thursday, February 6th. Oppenheimer reaffirmed an “outperform” rating and set a $300.00 target price on shares of Workday in a report on Tuesday, December 3rd. Scotiabank initiated coverage on Workday in a research report on Monday, November 18th. They issued a “sector outperform” rating and a $340.00 price objective for the company. Finally, Wells Fargo & Company raised their target price on shares of Workday from $300.00 to $330.00 and gave the stock an “overweight” rating in a report on Monday, December 9th. Ten investment analysts have rated the stock with a hold rating, twenty have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Workday presently has a consensus rating of “Moderate Buy” and an average price target of $291.11.

Workday Company Profile

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.