Workday (WDAY)
Information Technology · $46.0B market cap · SEC CIK 0001327811
fundamentals score out of 100
Next reports on Nov 23, 2026, after the close, with analysts expecting $2.79 in earnings per share.
The case for WDAY
- Generated $2.8B of free cash flow in FY2025, 29% of revenue.
- Revenue growing 13.3% year over year.
- Earnings per share up 127.9%.
- A PEG of 0.29: a P/E of 36.8× is low for EPS growing 128%.
- Has compounded revenue at 17.2% a year over five years.
- Return on equity of 17%.
The case against
- Pricey at 36.8× earnings, against a long-run market average nearer 20×.
- Current liabilities exceed current assets (ratio 0.91).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 55 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 80 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 55 |
| Momentumhow the price has behaved lately | 59 |
| Stabilityhow violently it moves, what it owes and what it pays you | 70 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 36.8× |
|---|---|
| Price / book | 6.13× |
| Price / sales | 4.5× |
| Revenue growth (YoY) | +13.3% |
| EPS growth (YoY) | +127.9% |
| Gross margin | 76% |
| Operating margin | 11% |
| Net margin | 12% |
| Return on equity | 17% |
| Debt / equity | 0.46× |
| Current ratio | 0.91 |
| Dividend yield | none |
| Beta | 1.03 |
| 52-week range | $110.36 – $249.85 |
| Position in that range | 56% of the way up |
| 3-month return | +64.1% |
| 1-year return | -17.8% |
Five years of financials, as filed
Pulled from Workday's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $9.6B | $8.4B | $7.3B | $6.2B | $5.1B |
| Operating income | $721M | $415M | $183M | -$222M | -$116M |
| Net income | $693M | $526M | $1.4B | -$367M | $29.0M |
| Operating cash flow | $2.9B | $2.5B | $2.1B | $1.7B | $1.7B |
| Capital expenditure | $162M | $269M | $232M | $364M | — |
| Total assets | $18.1B | $18.0B | $16.5B | $13.5B | $10.5B |
| Total liabilities | $10.3B | $8.9B | $8.4B | $7.9B | $6.0B |
| Shareholder equity | $7.8B | $9.0B | $8.1B | $5.6B | $4.5B |
| Cash | $1.5B | $1.5B | $2.0B | $1.9B | $1.5B |
| Long-term debt | $3.0B | $3.0B | $3.0B | $3.0B | $617M |
| Free cash flow | $2.8B | $2.2B | $1.9B | $1.3B | — |
| Operating margin | 7.5% | 4.9% | 2.5% | -3.6% | -2.3% |
| Net margin | 7.3% | 6.2% | 19.0% | -5.9% | 0.6% |
| Diluted shares | 268M | 269M | 265M | 255M | 254M |
Share count is up 5.5% over 4 years. Mild issuance.
What Workday says it does
Overview Workday is the enterprise AI platform for managing people, money, and agents. Workday provides more than 11,500 organizations with cloud solutions powered by artificial intelligence ("AI") to help solve some of today’s most complex business challenges, including supporting and empowering their workforce, managing their finances and spend in an ever-changing environment, and planning for the unexpected. We strive to reimagine how work gets done and hope to empower customers to do the same through an innovative suite of solutions with more than 75 million users under contract around the world and across industries – from emerging and medium-sized businesses to more than 65% of the Fortune 500. Central to our purpose is a set of core values – with our employees as number one – along with customer service, innovation, integrity, fun, and profitability. We believe that happy employees lead to happy customers, and we are committed…
Risk factors WDAY lists in its 10-K
- Risks Related to Our Business and Industry
- Any slowdown or failure in our technical operations infrastructure or applications may subject us to liabilities and adversely affect our reputation and operating results
- We depend on data centers and other infrastructure operated by third parties, as well as internet availability, and any disruption in these operations could adversely affect our business and operating results
- The markets in which we participate are intensely competitive, and if we do not compete effectively, our operating results could be adversely affected
- We may lose key employees or be unable to attract, enable, and retain highly skilled employees
- If we are not able to realize a return on the investments we have made toward entering new markets and new lines of business, our business and operating results could be adversely affected
- Our international presence, continued expansion, and sales to customers outside the U.S. or with international operations expose us to risks inherent in global operations
- Our business could be adversely affected if our users are not satisfied with the deployment, training, and support services provided by us and our partners
- Our future success depends on the rate of customer subscription renewals, and our revenues or operating results could be adversely impacted if we do not achieve renewals at expected rates or on anticipated terms
- The use of new and evolving technologies in our offerings at Workday, including generative and agentic AI capabilities, may result in reputational harm and increased litigation, and adversely affect our operating results
- If we fail to develop and maintain widespread positive awareness of our brand, our business may suffer
- If we are unable to successfully integrate our applications with a variety of third-party technologies, our business and operating results could be adversely affected
- Our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business
- Catastrophic or climate-related events may disrupt our business