📊 WDAY Key Takeaways
Is Workday, Inc. (WDAY) a Good Investment?
Workday demonstrates strong revenue growth (13.1% YoY) and exceptional free cash flow generation (24.2% FCF margin, $616M annually), with solid EPS growth (32.8% YoY) and healthy leverage (0.45x D/E). However, concerning returns on equity (3.3%) and assets (1.4%) combined with modest operating margins (13.3%) suggest capital inefficiency that requires monitoring.
Workday, Inc. Key Strengths (WDAY)
- Outstanding free cash flow generation at $616M with 24.2% FCF margin indicates strong underlying business economics and capital-light operations
- Solid revenue growth of 13.1% YoY with 32.8% EPS growth demonstrates operational leverage and improving profitability per share
- Healthy financial structure with 0.45x debt-to-equity ratio and strong interest coverage at 11.7x, providing financial flexibility and low default risk
WDAY Stock Risks: Workday, Inc. Investment Risks
- Critically low return on equity (3.3%) and return on assets (1.4%) suggest significant capital inefficiency and potential impairment in asset base
- Operating margin of 13.3% is below typical benchmarks for software/SaaS companies, indicating pricing pressure or operational challenges
- Tight liquidity position with current ratio at 1.01x and substantial long-term debt ($3B) limit financial cushion for downturns or strategic investments
Key Metrics to Watch
- Return on equity and return on assets trends—must improve to justify capital structure
- Operating margin expansion—critical to demonstrate pricing power and operational efficiency improvements
- Free cash flow sustainability—ensure strong FCF generation persists amid potential margin pressures
Workday, Inc. (WDAY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 24.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
WDAY Profit Margin, ROE & Profitability Analysis
WDAY vs Technology Sector: How Workday, Inc. Compares
How Workday, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Workday, Inc. Stock Overvalued? WDAY Valuation Analysis 2026
Based on fundamental analysis, Workday, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Workday, Inc. Balance Sheet: WDAY Debt, Cash & Liquidity
WDAY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Workday, Inc.'s revenue has grown significantly by 86% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.21 reflects profitable operations.
WDAY Revenue Growth, EPS Growth & YoY Performance
WDAY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $2.2B | $68.0M | $0.25 |
| Q3 2025 | $1.9B | $114.0M | $0.43 |
| Q2 2025 | $1.8B | $79.0M | $0.30 |
| Q1 2025 | $1.7B | N/A | $0.00 |
| Q3 2024 | $1.6B | -$74.7M | $-0.29 |
| Q2 2024 | $1.5B | -$64.2M | $-0.25 |
| Q1 2024 | $1.4B | $136.0K | $0.00 |
| Q3 2023 | $1.3B | $43.4M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Workday, Inc. Dividends, Buybacks & Capital Allocation
WDAY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Workday, Inc. (CIK: 0001327811)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WDAY
What is the AI rating for WDAY?
Workday, Inc. (WDAY) has an AI grade of A with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WDAY's key strengths?
Claude: Outstanding free cash flow generation at $616M with 24.2% FCF margin indicates strong underlying business economics and capital-light operations. Solid revenue growth of 13.1% YoY with 32.8% EPS growth demonstrates operational leverage and improving profitability per share.
What are the risks of investing in WDAY?
Claude: Critically low return on equity (3.3%) and return on assets (1.4%) suggest significant capital inefficiency and potential impairment in asset base. Operating margin of 13.3% is below typical benchmarks for software/SaaS companies, indicating pricing pressure or operational challenges.
What is WDAY's revenue and growth?
Workday, Inc. reported revenue of $2.5B.
Does WDAY pay dividends?
Workday, Inc. does not currently pay dividends.
Where can I find WDAY SEC filings?
Official SEC filings for Workday, Inc. (CIK: 0001327811) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WDAY's EPS?
Workday, Inc. has a diluted EPS of $0.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is WDAY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Workday, Inc. has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WDAY stock overvalued or undervalued?
Valuation metrics for WDAY: ROE of 3.3% (sector avg: 22%), net margin of 8.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is WDAY's AI grade for 2026?
Our dual AI analysis gives Workday, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WDAY's free cash flow?
Workday, Inc.'s operating cash flow is $696.0M, with capital expenditures of $80.0M. FCF margin is 24.2%.
How does WDAY compare to other Technology stocks?
Vs Technology sector averages: Net margin 8.7% (avg: 18%), ROE 3.3% (avg: 22%), current ratio 1.01 (avg: 2.5).