Workday (NASDAQ:WDAY) Posts Earnings Results

Workday (NASDAQ:WDAY) announced its quarterly earnings results on Thursday. The software maker reported $2.66 earnings per share for the quarter, beating analysts’ consensus estimates of $2.51 by $0.15, 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 8.60% and a return on equity of 13.92%. Workday’s revenue for the quarter was up 13.5% on a year-over-year basis. During the same quarter last year, the business earned $2.23 EPS.

Here are the key takeaways from Workday’s conference call:

• Workday said Q1 was its best first quarter of new ACV growth in five years, with momentum improving after a slower fiscal 2026.
• AI adoption appears to be gaining real traction: agentic AI new ACV grew more than 200% year over year, and Workday is approaching $500 million in ARR from agentic AI solutions.
• Customer engagement with Workday’s AI products is broadening, with 20 organic agents now in GA or EA and more than 4,000 customers using at least one organically developed agent.
• The company reiterated full-year FY2027 subscription revenue guidance of $9.925 billion to $9.950 billion and raised non-GAAP operating margin guidance to 30.5%, signaling confidence in both growth and profitability.
• Management emphasized that AI is being positioned as a platform expansion opportunity, with products like Sana for Workday and Deployment Agent intended to reduce implementation time, improve TCO, and expand use cases into adjacent areas like ITSM and travel.

Workday Stock Up 5.2%

Workday stock opened at $128.14 on Friday. The firm has a market cap of $32.93 billion, a PE ratio of 40.04, a P/E/G ratio of 1.18 and a beta of 1.04. The firm’s 50 day moving average price is $125.91 and its two-hundred day moving average price is $169.28. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.32. Workday has a twelve month low of $110.36 and a twelve month high of $257.09.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on WDAY shares. Mizuho dropped their price target on shares of Workday from $275.00 to $210.00 and set an “outperform” rating on the stock in a research note on Wednesday, February 25th. Needham & Company LLC lowered their price objective on shares of Workday from $300.00 to $180.00 and set a “buy” rating for the company in a research report on Friday. Wells Fargo & Company upped their target price on shares of Workday from $180.00 to $185.00 and gave the stock an “overweight” rating in a research report on Friday. The Goldman Sachs Group decreased their price objective on shares of Workday from $238.00 to $206.00 and set a “neutral” rating for the company in a report on Wednesday, February 25th. Finally, Wall Street Zen raised shares of Workday from a “hold” rating to a “buy” rating in a research note on Saturday, March 28th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $189.48.

Insiders Place Their Bets

In other news, major shareholder David A. Duffield sold 107,500 shares of the firm’s stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $129.76, for a total transaction of $13,949,200.00. Following the transaction, the insider owned 105,049 shares in the company, valued at approximately $13,631,158.24. This trade represents a 50.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gerrit S. Kazmaier sold 9,356 shares of the firm’s stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $128.39, for a total transaction of $1,201,216.84. Following the completion of the transaction, the insider owned 165,074 shares in the company, valued at $21,193,850.86. The trade was a 5.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 989,814 shares of company stock worth $131,576,291 in the last 90 days. 18.64% of the stock is owned by insiders.

Institutional Trading of Workday

Several hedge funds and other institutional investors have recently bought and sold shares of WDAY. Rakuten Securities Inc. acquired a new stake in shares of Workday during the 2nd quarter valued at about $25,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Workday during the 3rd quarter valued at about $26,000. JPL Wealth Management LLC acquired a new stake in shares of Workday during the 3rd quarter valued at about $30,000. Quarry LP acquired a new stake in shares of Workday during the 4th quarter valued at about $36,000. Finally, Aster Capital Management DIFC Ltd acquired a new stake in shares of Workday during the 4th quarter valued at about $38,000. 89.81% of the stock is currently owned by institutional investors and hedge funds.

Workday News Summary

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday posted Q1 adjusted EPS of $2.66 versus estimates of $2.49, while revenue rose 13.5% year over year to $2.54 billion, topping forecasts. Workday Announces Fiscal 2027 First Quarter Financial Results
• Positive Sentiment: Management raised its full-year non-GAAP operating margin guidance to 30.5%, signaling stronger profitability and helping fuel the stock’s rebound. Workday pops as Q1 results guidance top estimates
• Positive Sentiment: Analysts highlighted growing AI monetization, noting that Workday’s AI features and agentic roadmap are starting to show up in contract value and customer adoption. Workday’s AI Momentum Continues as Solid Q1 Results Posted, RBC Says
• Positive Sentiment: Several Wall Street firms responded with constructive commentary and price-target updates after the beat, reinforcing sentiment that the quarter was solid and the setup remains favorable. These Analysts Revise Their Forecasts On Workday Following Q1 Results
• Neutral Sentiment: Some analysts remain cautious, calling the post-earnings move more of a relief rally and noting that the stock is still expensive relative to fundamentals. WDAY Stock’s Gains Following Q1 Beat Fails to Unite Wall Street – This Analyst Believes Post-Earnings Rise Feels More Like Relief Rally
• Negative Sentiment: Citi and other firms trimmed price targets, reflecting lingering concerns about valuation and execution even after the strong quarter. Workday Rallies On ‘Low Bar’ Beat As AI Starts To Show Up In Contract Value

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.