Workday (NASDAQ:WDAY) Releases Earnings Results, Beats Estimates By $0.17 EPS

Workday (NASDAQ:WDAY) issued its quarterly earnings results on Thursday. The software maker reported $2.66 EPS for the quarter, topping analysts’ consensus estimates of $2.49 by $0.17, FiscalAI reports. The company had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.52 billion. Workday had a net margin of 7.26% and a return on equity of 13.37%.

Workday Trading Down 3.8%

NASDAQ WDAY traded down $4.78 during mid-day trading on Thursday, reaching $121.83. 5,748,715 shares of the stock were exchanged, compared to its average volume of 5,040,581. Workday has a one year low of $110.36 and a one year high of $273.80. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.32 and a quick ratio of 1.32. The stock has a market cap of $31.31 billion, a P/E ratio of 47.22, a P/E/G ratio of 1.26 and a beta of 1.04. The stock has a 50 day simple moving average of $126.51 and a 200-day simple moving average of $170.40.

Wall Street Analyst Weigh In

WDAY has been the topic of a number of recent research reports. Citizens Jmp lowered shares of Workday from an “outperform” rating to a “market perform” rating in a report on Wednesday, February 18th. DA Davidson lowered their target price on shares of Workday from $250.00 to $125.00 and set a “neutral” rating for the company in a research note on Wednesday, February 25th. Morgan Stanley lowered their target price on shares of Workday from $280.00 to $200.00 and set an “equal weight” rating for the company in a research note on Monday, February 23rd. JPMorgan Chase & Co. lowered their target price on shares of Workday from $270.00 to $230.00 and set an “overweight” rating for the company in a research note on Tuesday, February 24th. Finally, Barclays lowered their target price on shares of Workday from $230.00 to $200.00 and set an “overweight” rating for the company in a research note on Wednesday, February 25th. Nineteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Workday has a consensus rating of “Moderate Buy” and an average target price of $198.42.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday unveiled new AI products at Sana AI Summit, including Sana for IT Service Management and a Travel Agent, which could support its push to show AI-driven product momentum and strengthen its enterprise platform. Workday Announces Sana for IT Service Management and New Travel Agent
• Positive Sentiment: Analysts still expect Workday to deliver roughly in-line Q1 results, with consensus around $2.52 EPS on $2.52 billion revenue, suggesting the quarter may not be a major miss if execution holds up. Workday (WDAY) Q1 Earnings Preview: Can the Fallen Software Giant Rebound?
• Neutral Sentiment: Wall Street commentary ahead of the report has been mixed, with some analysts still optimistic while others focus on whether Workday can justify its long-term margin and revenue targets after leadership changes. Is Workday (WDAY) a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: Jefferies flagged execution risk ahead of earnings, citing slowing growth, questions about the AI pivot, and uncertainty around Workday’s ability to sustain targets under the returning CEO, Aneel Bhusri. Workday execution risk flagged by Jefferies ahead of quarterly earnings
• Negative Sentiment: Recent coverage also highlights that Workday’s shares have been weak heading into the print, reflecting investor skepticism after a steep year-to-date decline and concerns that the company must prove it can reaccelerate growth. Workday Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

Insider Transactions at Workday

In other Workday news, major shareholder David A. Duffield sold 107,500 shares of Workday stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $112.33, for a total value of $12,075,475.00. Following the completion of the sale, the insider directly owned 105,049 shares of the company’s stock, valued at approximately $11,800,154.17. The trade was a 50.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Mark S. Garfield sold 1,585 shares of Workday stock in a transaction on Friday, April 10th. The shares were sold at an average price of $113.05, for a total transaction of $179,184.25. Following the completion of the sale, the chief accounting officer directly owned 31,467 shares of the company’s stock, valued at approximately $3,557,344.35. This trade represents a 4.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 989,814 shares of company stock valued at $131,576,291. 18.64% of the stock is owned by insiders.

Institutional Investors Weigh In On Workday

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC grew its holdings in shares of Workday by 230.2% during the fourth quarter. Brighton Jones LLC now owns 4,005 shares of the software maker’s stock valued at $1,033,000 after buying an additional 2,792 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Workday during the second quarter worth about $281,000. Safe Harbor Fiduciary LLC purchased a new position in Workday during the fourth quarter worth about $57,000. DV Equities LLC purchased a new position in Workday during the fourth quarter worth about $65,000. Finally, Wealth Watch Advisors INC boosted its holdings in Workday by 53.6% during the fourth quarter. Wealth Watch Advisors INC now owns 593 shares of the software maker’s stock worth $127,000 after purchasing an additional 207 shares during the last quarter. 89.81% of the stock is owned by institutional investors.

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.