📊 WDAY Key Takeaways
Is Workday, Inc. (WDAY) a Good Investment?
Workday demonstrates strong operational leverage with net income growing 2.4x faster than revenue (31.7% vs 13.1%), combined with exceptional free cash flow generation ($2.8B, 29.1% FCF margin) and a conservatively leveraged balance sheet (0.38x debt/equity). The company's asset-light SaaS model with strong cash generation supports sustainable growth, though modest operating margins (7.5%) and muted returns on capital (ROE 8.9%) suggest room for efficiency gains at scale.
Why Buy Workday, Inc. Stock? WDAY Key Strengths
- Strong profitability acceleration - net income growing 31.7% YoY significantly outpacing 13.1% revenue growth indicates improving operational leverage
- Exceptional free cash flow generation - $2.8B FCF with 29.1% FCF margin provides financial flexibility and validates underlying business quality beyond reported earnings
- Conservative financial structure - 0.38x debt/equity ratio with 6.3x interest coverage and only $162M CapEx (1.7% of revenue) demonstrates sustainable capital-light model
WDAY Stock Risks: Workday, Inc. Investment Risks
- Low reported profitability margins - 7.5% operating margin and 7.3% net margin are modest for a mature enterprise SaaS company, raising questions about cost structure
- Weak capital efficiency - ROE of 8.9% and ROA of 3.8% suggest sub-optimal returns on deployed capital relative to growth rate
- Moderate liquidity position - 1.32x current ratio provides adequate but not exceptional cushion relative to $10.3B in total liabilities
Key Metrics to Watch
- Operating margin expansion trajectory - critical to validate whether 31.7% earnings growth is sustainable or driven by temporary factors
- Free cash flow maintenance and conversion rate - ensuring the 29.1% FCF margin holds as the business scales
- Debt/equity ratio and capital allocation - monitoring whether management deploys leverage opportunistically or maintains conservative posture
Workday, Inc. (WDAY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 29.1% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.3B | $59.2M | $0.23 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 14, 2026 | 4 | xslF345X06/wk-form4_1776198089.xml | View → |
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776116308.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775602061.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775601953.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775601855.xml | View → |
❓ Frequently Asked Questions about WDAY
What is the AI rating for WDAY?
Workday, Inc. (WDAY) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WDAY's key strengths?
Claude: Strong profitability acceleration - net income growing 31.7% YoY significantly outpacing 13.1% revenue growth indicates improving operational leverage. Exceptional free cash flow generation - $2.8B FCF with 29.1% FCF margin provides financial flexibility and validates underlying business quality beyond reported earnings.
What are the risks of investing in WDAY?
Claude: Low reported profitability margins - 7.5% operating margin and 7.3% net margin are modest for a mature enterprise SaaS company, raising questions about cost structure. Weak capital efficiency - ROE of 8.9% and ROA of 3.8% suggest sub-optimal returns on deployed capital relative to growth rate.
What is WDAY's revenue and growth?
Workday, Inc. reported revenue of $9.6B.
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 $2.59.
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 rating reflects both perspectives for balanced insights.
Is WDAY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Workday, Inc. has a BUY rating with 78% 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 8.9% (sector avg: 22%), net margin of 7.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy WDAY stock in 2026?
Our dual AI analysis gives Workday, Inc. a combined BUY rating 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 $2.9B, with capital expenditures of $162.0M. FCF margin is 29.1%.
How does WDAY compare to other Technology stocks?
Vs Technology sector averages: Net margin 7.3% (avg: 18%), ROE 8.9% (avg: 22%), current ratio 1.32 (avg: 2.5).