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With a market cap of $57.8 billion, Workday, Inc. (WDAY) provides enterprise cloud applications in the United States and internationally. Headquartered in Pleasanton, California, the company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights, and more. WDAY is set to report its Q1 earnings on Thursday, May 22.
Ahead of the event, analysts expect WDAY to report an EPS of $0.69 per share, up 35.3% from a profit of $0.51 per share reported in the year-ago quarter. It has exceeded or met analysts' earnings estimates in two of the past four quarters, while missing on two other occasions. Its EPS of $0.48 in the recent quarter failed to surpass the analyst estimates by 18.6%.
For fiscal 2025, analysts expect WDAY to report an EPS of $3.38, up 100% from $1.69 in fiscal 2024. Moreover, in fiscal 2026, its EPS is expected to grow 38.8% year over year to $4.69.
Over the past year, WDAY shares dropped 4.5%, underperforming the S&P 500 Index’s ($SPX) 8.4% gains and the Technology Select Sector SPDR Fund’s (XLK) 4.2% returns over the same time frame.
WDAY shares declined 2.5% following its Q4 earnings release on Feb. 25. The company reported a 15% increase in its total revenue, which amounted to $2.2 billion. The growth could be attributed to a 15.9% increase in its subscription revenue, which amounted to $2 billion alone.
Moreover, analysts remain highly bullish about WDAY stock’s future prospects, with a "Strong Buy" rating overall. Among 35 analysts covering the stock, 24 recommend a “Strong Buy,” two recommend a “Moderate Buy,” and nine recommend a “Hold.” WDAY’s mean price of $298.67 implies a premium of 24.7% from its prevailing price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
