Akcie Workday za tři měsíce vzrostly o 49,7 % díky silným výsledkům za 2. čtvrtletí: tržby stouply o 12,8 % na 2,65 miliardy USD a non-GAAP EPS o 24,4 % na 2,75 USD.
Key Takeaways Workday shares gained 49.7% in three months as Q2 revenues rose 12.8% and non-GAAP EPS climbed 24.4%.AI products topped $100M in new ACV, while agentic AI ARR neared $600M after rising more than 200%.Workday raised fiscal 2027 non-GAAP margin guidance to 31%, as backlog and 97% retention support visibility. Workday, Inc. (WDAY - Free Report) shares have gained 49.7% in the past three months, sharply outpacing the broader market. The move puts the durability of the advance in focus as investors weigh stronger operating results against the speed of the recent share-price move.
Subscription growth, rising AI monetization and expanding margins provide fundamental support. Valuation, competitive pressure, longer sales cycles and implementation complexity remain important checks on how much of that operating improvement can translate into further upside.
Workday's 49.7% Rally Meets Stronger Q2 ResultsIn the second quarter of fiscal 2027, revenues increased 12.8% year over year to $2.65 billion. Non-GAAP earnings rose 24.4% to $2.75 per share. Both topped the Zacks Consensus Estimate, which called for revenues of $2.63 billion and earnings of $2.62 per share.
Subscription services generated $2.47 billion, up 13.9%, and represented about 93% of total revenues. That mix gives Workday a recurring-revenue base alongside the recent share-price advance.
WDAY's AI Adoption Is Turning Into Contract ValueAI products generated more than $100 million of new annual contract value in the quarter and accounted for more than 25% of total new ACV. Agentic AI annual recurring revenues approached $600 million, rising more than 200% year over year and 20% sequentially.
More than 5,500 customers were using at least one organic Workday agent, up more than 35% from the prior quarter. More than half of net new wins included one or more AI solutions, and more than 200 customers had signed up for Flex Credits.
Workday's Backlog and Retention Support VisibilityTwelve-month subscription revenue backlog increased 14.2% to $9.03 billion, while total subscription backlog rose 8% to $27.4 billion. Those contracted commitments add visibility to Workday's recurring subscription model.
Gross revenue retention held near 97%. Expansion among existing customers drove roughly 60% of subscription revenue growth, while the remaining 40% came from customers added after the start of the comparable prior-year period.
WDAY's Margin Gains Add Weight to the RallyNon-GAAP operating margin expanded to 31.1% from 29%, with non-GAAP operating income rising 21% to $824 million. Workday attributed the improvement to revenue growth outpacing headcount growth and moderated operating expenses.
Management raised fiscal 2027 non-GAAP operating margin guidance to 31% and expects at least two additional percentage points of expansion in fiscal 2028. The targets matter because total costs and expenses still increased 11% in the July quarter.
Workday's Valuation Tests How Much Upside Is LeftWorkday's forward 12-month price-to-sales ratio is 4.17, slightly above the sub-industry's 4.07 but below its five-year median of 6.73.
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Oracle Corporation (ORCL - Free Report) is a peer in human capital management (HCM), keeping competitive pressure on similar enterprise workflows. SAP SE (SAP - Free Report) is another HCM peer, adding to pricing and product competition. Longer sales cycles and complex implementations can also constrain growth and valuation support over time.
WDAY's Mixed Style Scores Temper the Momentum CaseThe near-term setup looks balanced. Operating momentum is improving, but competition, execution and valuation still matter when assessing whether the rally can extend.
WDAY carries a Zacks Rank #3 (Hold), which points to a middle-of-the-road short-term setup rather than a top-rated signal. Its Growth Score of A is favorable, but the Value Score of D and Momentum Score of F are weak. The VGM Score of C leaves the combined style profile mixed. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Workday očekává ve fiskálním roce 2027 tržby z předplatného 9,94–9,95 mld. USD, tedy růst o 13 %, zatímco agentic AI ARR se přiblížil 600 mil. USD a meziročně vzrostl o více než 200 %.
Key Takeaways Workday expects fiscal 2027 subscription revenues of $9.94-$9.95B, up 13%, with 97% retention.Agentic AI ARR neared $600M, rising more than 200% year over year, as AI gains traction in new wins.Workday generated $1.076B in first-half free cash flow and repurchased $2.9B of stock. Workday, Inc. (WDAY - Free Report) is pairing double-digit subscription growth with faster AI adoption and improving profitability. Those trends strengthen the long-term business case as recurring demand remains durable.
The investment decision is less straightforward. WDAY’s valuation sits slightly above its sub-industry even after compressing well below its own historical median, while competition and execution demands remain material.
Workday's Growth Engine Still Has VisibilityWorkday expects fiscal 2027 subscription revenues of $9.94-$9.95 billion, representing 13% growth. That outlook is supported by recurring demand and a customer base that continues to renew at a high rate.
Gross revenue retention remained about 97% in the second quarter, while 12-month subscription revenue backlog rose 14.2% to $9.03 billion. Existing-customer expansion generated roughly 60% of subscription revenue growth, adding another source of visibility.
WDAY's AI Upside Is Building but Monetization Takes TimeAgentic AI annual recurring revenues approached $600 million, rising more than 200% year over year and 20% sequentially. More than half of net new wins included one or more AI solutions, showing that AI is becoming part of Workday’s broader sales motion.
The revenue contribution will not arrive all at once. Management is prioritizing adoption of consumption-based AI products and expects AI to become a more meaningful contributor to incremental annual recurring revenues from fiscal 2028 and beyond.
Workday's Valuation Offers a Mixed SignalWDAY trades at 4.2X forward 12-month sales, modestly above the Zacks sub-industry’s 4.1X. On this measure, the shares carry a small relative premium.
The historical comparison points the other way. Workday’s five-year median multiple is 6.7X, well above the current level. The valuation therefore sends a mixed signal rather than placing WDAY clearly at either an obvious bargain or an extreme historical premium.
WDAY Faces Competition and Implementation RiskCompetition remains intense across human capital management and financial software. Oracle Corporation (ORCL - Free Report) is building agentic capabilities into Oracle Fusion Cloud Applications, extending AI deeper into enterprise workflows.
SAP SE (SAP - Free Report) is also expanding suite-wide agentic AI across SAP SuccessFactors, including recruiting, workforce administration, payroll, learning and talent development. Workday has cited greater deal scrutiny and longer sales cycles in some markets, while complex implementations can delay customer time-to-value.
Workday's Cash Flow and Buybacks Support the CaseWorkday generated $1.076 billion of free cash flow in the first half of fiscal 2027. Management maintained full-year free cash flow guidance of $3.18 billion while continuing to prioritize investment in its agentic AI roadmap and platform opportunity.
WDAY repurchased $2.9 billion of stock in the first half. The board subsequently authorized an additional open-ended $4 billion repurchase program after Workday completed its prior $5 billion repurchase plan six months ahead of target.
WDAY's Growth Score Leads a Mixed Style ProfileThe operating picture supports patience more clearly than an aggressive entry. AI adoption, recurring subscription demand and cash generation are positives, but valuation, competition and the timing of AI monetization keep the risk-reward balance from looking one-sided.
WDAY currently carries a Zacks Rank #3 (Hold). Its Growth Score of A is favorable, but the Value Score of D, Momentum Score of F and VGM Score of C show that its growth characteristics are stronger than its value and momentum profiles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Workday schválila zpětný odkup akcií za 4 miliardy USD a podle Jima Cramera tím brání případnému převzetí. Firma zároveň oznámila říjnový den pro analytiky a nové veřejné závazky.
Silver Lake wants Workday, but Workday just fired back with $4 billion and a packed calendar of public commitments. Jim Cramer says the company is fighting its own takeover, and the five-year chart reveals what investors are actually betting on.
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Workday (NASDAQ:WDAY | WDAY Price Prediction) stock still carries a takeover premium from reported Silver Lake acquisition talks, and the company’s own recent moves read like a business arguing it doesn’t need a buyer. Workday authorized a $4 billion open-ended repurchase on August 27, scheduled its annual financial analyst day for October 13, and issued a release claiming it now signs a new state or local government customer nearly every week. All three landed inside two weeks of the deal chatter.
Mad Money host Jim Cramer flagged the tension on air, first the night the Silver Lake report hit and Workday stock jumped 18%, and again in late August after the buyback disclosure. Cramer’s read, paraphrased, is that Workday is fighting a takeover with capital return, and the split between the deal premium and the underlying trajectory is what investors have to price right now.
The scoreboard tells that story starkly. Workday stock is up 24% over the past month, down 13% over one year, and down 26% over five years. Today, Workday stock is up 0.7% to $199.77 midday.
For context, over the past year, Salesforce (NYSE:CRM) stock is up 1.33% and ServiceNow (NYSE:NOW) stock is down 25%, while the iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is down 4%. As for WDAY stock, anyone who bought the takeover pop owns a business worth less than a year ago and considerably less than five years ago, while betting on a transaction the company’s own conduct is arguing against.
Cramer’s Read on the Buyback The new authorization sits on top of a previously announced $5 billion program that Workday completed six months ahead of its target. Management framed buybacks as a permanent part of capital allocation and reported $1.3 billion of repurchases during the quarter alone. Stacking a $4 billion open-ended authorization on top of a program it just retired early is the move of a company positioning to stay independent, not one negotiating its own sale.
The analyst day compounds that signal. Booking a full day of forward strategy discussion signals management expects to be running the business publicly on that date, and the buyback size gives capital-return support to holders who stay independent alongside the company. TD Cowen raised its price target on Workday stock to $220 while maintaining a Hold rating, a combination that itself communicates how far the standalone story stretches.
What the Government Book Really Buys Workday’s public-sector release names concrete wins. New customers include the State of Delaware, the Commonwealth of Massachusetts, New Jersey Transit Authority, Bexar County, the New York State Unified Court System, and the Utah Transit Authority. Recent go-lives include the City of Akron, the State of Georgia, the City of San Mateo, and Sandy City.
Workday says more than 100 state and local government entities have selected the platform in the past two years, and the Georgia deployment covers more than 200 agencies and over 70,000 employees in roughly 30 months. Government contracts are durable and slow, which is a real strength and the reason they won’t reprice a stock quickly. The book strengthens the standalone case without moving the near-term tape, and it also frames what a private-equity owner would inherit if a deal did close.
Standalone Verdict The five-year return is the hardest fact for the standalone case to answer. A window that long isolates execution rather than sentiment, and Workday stock down 27% over five years says the platform hasn’t converted its scale into shareholder returns without help from a deal narrative. The buyback supports the share count, and growth still has to come from the platform itself.
At current levels, the WDAY stock price isn’t fully supportable on the standalone book yet. Workday’s government pipeline and the buyback anchor a floor. However, the takeover premium is what pulled the stock 24% higher in a month, and if the Silver Lake talks go nowhere, exposure here is to a stock that has already given back a year of gains and half a decade of compounding, holding its bounce on deal hope rather than results.
Position sizing should reflect that. Investors treating Workday as a durable enterprise-software holding may want to size it for the underlying business alone and treat any deal-related upside as optionality rather than a plan. Anyone who chased the mid-August pop should cap the position at a size that can survive a headline saying the talks ended, because that outcome is a live risk and the five-year chart is the clearer read on what supports the shares without one.
Contact [email protected] for any questions or corrections.
Workday (WDAY - Free Report) came out with quarterly earnings of $2.75 per share, beating the Zacks Consensus Estimate of $2.62 per share. This compares to earnings of $2.21 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.96%. A quarter ago, it was expected that this maker of human resources software would post earnings of $2.49 per share when it actually produced earnings of $2.66, delivering a surprise of +6.83%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Workday, which belongs to the Zacks Internet - Software industry, posted revenues of $2.65 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $2.35 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Workday shares have lost about 11.2% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Workday?While Workday has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Workday was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.65 on $2.69 billion in revenues for the coming quarter and $10.81 on $10.66 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, UiPath (PATH - Free Report) , is yet to report results for the quarter ended July 2026. The results are expected to be released on September 3.
This enterprise automation software developer is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
UiPath's revenues are expected to be $397.59 million, up 9.9% from the year-ago quarter.
Workday, Inc. (WDAY) Q2 2027 Earnings Call August 27, 2026 4:30 PM EDT
Company Participants
Justin Furby - Vice President of Investor Relations
Aneel Bhusri - Co-Founder, CEO & Executive Chairman of the Board
Gerrit Kazmaier - President of Product & Technology
Gabriel Monroy - Chief Technology Officer
Robert Enslin - President & Chief Commercial Officer
Zane Rowe - Chief Financial Officer
Conference Call Participants
Gabriela Borges - Goldman Sachs Group, Inc., Research Division
Michael Turrin - Wells Fargo Securities, LLC, Research Division
S. Kirk Materne - Evercore ISI Institutional Equities, Research Division
John DiFucci - Guggenheim Securities, LLC, Research Division
Aleksandr Zukin - Wolfe Research, LLC
Karl Keirstead
Samik Chatterjee
Presentation
Operator
Ladies and gentlemen, welcome to Workday's Second Quarter Fiscal Year 2027 Earnings Call. [Operator Instructions]
I will now hand it over to Justin Furby, Vice President of Investor Relations. Please go ahead.
Justin Furby
Vice President of Investor Relations
Thank you, operator. Welcome to Workday's Second Quarter Fiscal 2027 Earnings Conference Call. On the call, we have Aneel Bhusri, our CEO; Gerrit Kazmaier, our President, Product and Technology; Gabe Monroy, our Chief Technology Officer; Rob Enslin, our President and Chief Commercial Officer; and Zane Rowe, our CFO. Following prepared remarks, we will take questions. Our press release was issued after close of market and is posted on our website where this call is being simultaneously webcast.
Before we get started, we want to emphasize that some of our statements on this call, particularly our guidance, are based on the information we have as of today and include forward-looking statements regarding our financial results, applications and solutions, customer demand, operations and other matters. These statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially. Please refer to the press release and the risk factors and documents we file with the Securities and Exchange Commission, including our fiscal 2026 annual report on
Workday Inc (NASDAQ:WDAY) on Thursday reported upbeat financial results for the second quarter, but lowered its FY27 sales guidance.
Workday reported quarterly earnings of $2.75 per share which beat the analyst consensus estimate of $2.61 per share. The company reported quarterly sales of $2.649 billion which beat the analyst consensus estimate of $2.636 billion.
Workday cut its FY2027 sales guidance from $10.635 billion-$10.660 billion to $9.940 billion-$9.950 billion.
“We had a strong Q2, with AI driving more than 25% of our new ACV and more than 5,500 customers now using at least one of our organic agents,” said Aneel Bhusri, co-founder, CEO, and chair, Workday. “Because of Workday’s deterministic rails, customers can trust our agents with the work that matters, and you’re seeing that in the numbers.”
Workday shares rose 0.1% to $193.75 in pre-market trading
These analysts made changes to their price targets on Workday following earnings announcement.
Piper Sandler analyst Billy Fitzsimmons maintained the stock with a Neutral and raised the price target from $145 to $190. Needham analyst Scott Berg maintained the stock with a Buy and raised the price target from $180 to $230. Morgan Stanley analyst Keith Weiss maintained the stock with an Underweight rating and raised the price target from $145 to $180. Cantor Fitzgerald analyst Matthew Vanvliet maintained the stock with an Overweight rating and lowered the price target from $220 to $205. Trending
Considering buying WDAY stock? Here’s what analysts think:
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Workday uvedl, že AI neohrožuje jeho byznys, ale naopak ho táhne: tržby ve 2. čtvrtletí vzrostly o 12,8 % na 2,65 miliardy USD a AI tvořila 25 % nové smluvní hodnoty.
Workday NASDAQ: WDAY was among the hardest hit by SaaS-pocalypse fears—and among the best positioned for a rebound. The takeaway from Q2 reporting is that AI isn’t disrupting its business so much as driving it.
AI modelers aren’t disrupting the business, and neither are the customers, who, it was feared, might develop their own internal human resources automation tools. In reality, businesses and enterprises are turning to Workday in record numbers as it transitions from a legacy operator to a new-age agentic AI enabler.
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Reasons why the stock price could continue to rise in 2026 and beyond are record sales, hypergrowth in core agentic AI segments, the deal pipeline, adoption rates, and margins. Unlike AI infrastructure operators, which are heavily burdened with front-end costs, Workday is among the few that are successfully monetizing AI today.
Among the critical details are Workday's cash flow and the capital returns it enables. Workday is a share-buying machine, buying back approximately $1.33 billion in shares during the quarter and issuing a new authorization.
Buybacks helped reduce the share count by about 8.8% from a year earlier. The new authorization is worth $4 billion, or about 8.3% of the late-August market cap.
Workday Is in the Early Stages of an AI BoomWorkday posted a strong quarter, with revenue growth and guidance that exceeded expectations. Revenue grew by 12.8% to $2.65 billion, marginally better than expected, underpinned by subscriptions and AI.
Subscriptions grew 13.9%, while AI accounted for 25% of new contract value as adoption accelerated. Adoption, as indicated by the number of clients using at least one agentic product, grew by 35%. The backlog also grew solidly, up 14.2% on a 12-month basis and 8% overall, pointing to continued strength in the coming quarters.
Margin was the real bright spot. The company widened margins at all levels, driving faster earnings growth despite increased investment. Adjusted operating income margin grew 210 basis points (bps), driving $2.75 in adjusted earnings per share, up 20% from the prior year and nearly 15 cents above expectations.
WDAY Market Underprices Growth PotentialGuidance could be a catalyst for higher stock prices, with Q3 and full-year targets above consensus forecasts, underpinned by new and expanded deals with hyperscalers, including Alphabet’s NASDAQ: GOOGL Google Cloud and Amazon's NASDAQ: AMZN AWS.
The likely outcome is that Workday continues to gain momentum and outperforms its forecast in the subsequent quarter.
The question now is where the stock price might go before then, and the trends are strongly bullish. The problem is that initial analyst responses to the release, as bullish as they were, only lifted targets to the $220 range. In this scenario, analysts are signaling a bottom in the stock and potential for it to rise over time, but near-term upside is limited.
Long-term, the upside potential is ample. The stock trades at a reasonably low price-to-earnings multiple today, about 17.5x the current-year guidance, which doesn't fully price in the growth trajectory.
Analysts forecast substantial earnings growth in the coming years, which could significantly compress Workday’s forward P/E multiple. In this scenario, WDAY stock could rise by several hundred percentage points over the coming years, exceeding $1,000 within the next few years.
Analysts and institutional data reflect caution, but also an underlying confidence not found in most stocks. Thirty-eight analysts cover WDAY, a high number for any stock, and the consensus is Hold, with a 51.3% Buy-side bias and an uptrend in price targets likely to continue as the year progresses.
Institutions show a more visibly bullish posture, owning nearly 90% of the stock and accumulating quarterly over the trailing 12 months. Their activity conspicuously accelerated in late Q2 and early Q3, coinciding with the stock price rebound, limiting risk in Q3.
Workday has an added tailwind in the short interest. Short interest was falling ahead of the release and will likely accelerate the decline now that guidance is in. The risk is that short sellers will reposition at a higher level, reinforcing the idea that near-term upside may be limited. Lingering SaaS-pocalypse fears add to the risk, setting the stage for volatility in upcoming quarters, if not an outright correction, should weaker-than-expected earnings or bad news emerge.
Chart price action is bullish, signaling the continuation of the trend. The risk, again, is that candlestick action limits near-term upside. The early-August price surge triggered selling and resistance at the long-term 150-week EMA, indicating a price cap near $227.
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Workday před zveřejněním výsledků 27. srpna těží z pravděpodobnosti překonání odhadů 0,91 a z jednání o převzetí s Silver Lake. Akcie jsou za poslední měsíc výše o 39,77 %.
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Owning Workday (NASDAQ:WDAY | WDAY Price Prediction) shares into the August 27, 2026 after-market earnings report is the cleanest pre-earnings setup in enterprise software today. The prediction market is pricing a 0.91 probability of a beat, the company just delivered its fourth consecutive EPS beat, and buyout chatter has put a strategic floor under the stock. The odds favor the bulls.
Valuation That No Longer Punishes You Trailing multiples look demanding at a P/E of 60, but the forward figure tells the real story: forward P/E of 18 against a PEG of 0.75. Free cash flow yield sits at 7.00%, and management guided fiscal 2027 free cash flow to $3.180 billion, growth of 15%. You are paying growth-at-a-reasonable-price multiples for a business converting revenue into cash at scale.
Catalyst Stack Into August 27 Management guided Q2 FY2027 subscription revenue to approximately $2.455 billion, growth of 13% and CRPO growth of 13.5% to 14.5%. New ACV from agentic AI products grew more than 200% year over year, with the company approaching $500 million in ARR from agentic AI solutions. On top of that, Reuters reported on August 13 that Silver Lake is in talks to buy Workday, adding a takeout premium that did not exist a month ago. Shares are up 39.77% over the past month, and history says the payoff often comes after the report settles: the average one-week post-earnings move is +7.83%.
Head-to-Head vs. Salesforce and Oracle Against Salesforce (NYSE:CRM), Workday is growing subscription revenue faster: 14% in Q1 versus CRM’s high-single-digit subscription trajectory, and CEO Aneel Bhusri stated customers are “looking to us first for AI solutions for the HR and finance worlds”. Against Oracle (NYSE:ORCL), Workday’s non-GAAP operating margin of 31.8% and 97% gross revenue retention anchor a purer cloud HCM story than Oracle Fusion’s mixed on-prem and cloud stack. Workday won the head-to-head where it matters: agentic AI adoption, with more than 4,000 customers live.
Risk, Dismissed Bears point to the trailing multiple and to insider selling. Both are backward-looking. Q1 non-GAAP operating income hit $809 million, operating cash flow grew 52%, and the board authorized enough capital to repurchase roughly 12 million shares for $1.6 billion last quarter alone. Multiples compress when growth stalls. This one is accelerating.
Retirement-focused investors watching the August 27 report have a rare confluence of accelerating growth, forward-multiple compression, and a strategic-buyer bid working in their favor.
Contact [email protected] for any questions or corrections.
Workday spustil AI Research pro vývoj spolehlivých podnikových AI systémů. Jeho selektivní paměť AI zlepšila přesnost o 12 %, kvalitu asi o 8 % a rychlost asi o 31 %.
Key Takeaways WDAY launched AI Research to build reliable, trustworthy and efficient enterprise AI systems.Workday's selective AI memory improved precision by 12%, quality by 8% and speed by around 31%.WDAY found specialized AI agents raised decision-making accuracy 5.8% while meeting constraints. Workday, Inc. (WDAY - Free Report) has launched Workday AI Research, a dedicated technical research team focused on developing reliable, trustworthy and efficient enterprise artificial intelligence (AI). The initiative aims to address key challenges associated with deploying AI agents across business operations, including memory, accuracy, privacy, explainability and governance.
Workday’s researchers are focusing on key areas such as AI memory, multi-agent collaboration, recommendation systems, AI training and resource optimization. Its research has been accepted at several leading global AI and technology conferences. To further strengthen its research efforts, the company has introduced an AI Research PhD Fellowship that offers $50,000 in annual funding, mentorship and opportunities to collaborate with its researchers.
The company’s recent research found that a selective AI memory system can help agents retain important information while filtering outdated or unreliable data, improving precision by 12%, overall quality by about 8% and speed by around 31%. It also found that multiple specialized AI agents can improve decision-making, increasing accuracy by 5.8% while ensuring responses met defined constraints.
Workday’s research also highlights the need for effective data deletion, as information removed from an AI agent’s memory may remain in previous summaries. The company’s investment in AI research reflects its focus on building reliable, transparent and well-governed AI systems that can improve automation.
How Are Competitors Advancing in Enterprise AI?Workday faces competition from Oracle Corporation (ORCL - Free Report) and Automatic Data Processing, Inc. (ADP - Free Report) . Oracle is expanding its enterprise AI efforts through Oracle Cloud Infrastructure and AI-powered Fusion Cloud Applications. The company is adding AI agents to automate workflows and support business operations across finance, HR and supply chain functions. Oracle is bringing Google’s Gemini models to its enterprise applications, giving customers more options for building and deploying AI agents.
ADP is strengthening its enterprise AI capabilities through ADP Assist, which provides AI agents for HR and payroll functions. The company introduced an AI agent that identifies payroll variances, suggests corrective actions and helps resolve issues before errors occur. ADP is using AI to deliver workforce insights, automate routine tasks and support decision-making while maintaining human oversight and governance.
Workday’s Price Performance, Valuation & EstimatesWorkday shares have lost 13.3% over the past year compared with the industry’s decline of 13.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Workday trades at a forward price-to-sales ratio of 4.31, above the industry average of 3.87.
Image Source: Zacks Investment Research
Earnings estimates for fiscal 2027 have increased 0.6% to $10.81 over the past 60 days, while the same for fiscal 2028 have decreased 0.1% to $12.66.
Image Source: Zacks Investment Research
Workday currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Workday vyskočil téměř o 18 % po zprávě, že Silver Lake jedná o převzetí firmy do soukromých rukou. Dohoda ale není jistá a žádná cena ani podmínky nebyly zveřejněny.
Workday (WDAY -3.76%) had its best day since 2016 last Thursday. Shares jumped nearly 18% (trading was halted multiple times along the way) after Reuters reported that private equity firm Silver Lake has spent recent months in talks to take the human resources and finance software maker private. The move lifted Workday's market value from about $43 billion to nearly $51 billion.
What nobody has reported is a price, or terms, or any assurance a deal gets done. Neither Workday nor Silver Lake immediately responded to CNBC's request for comment. And reported talks don't always turn into offers.
So the exercise worth doing is valuing the business on its own -- as if no buyer ever shows up.
Image source: Getty Images.
What Thursday changed Before the report, Workday was a stock the market had spent much of the year marking down. Concerns that artificial intelligence (AI) will upend the business model of seat-based software have weighed on the shares for months. The company also changed leaders in February, when co-founder Aneel Bhusri returned as CEO, replacing Carl Eschenbach. And even after Thursday's jump, the stock remains about 17% below its 52-week high of $249.85.
That context matters for handicapping the talks. A private equity firm circling a company like this is a bet that the market's AI fears are overdone, and that the cash flows are durable enough to carry a leveraged deal. Even if no offer ever comes, the report says a deep-pocketed buyer has been in talks about a deal for months.
The stand-alone business The business under all this is slower than it was, and considerably more profitable. Workday's revenue over the trailing 12 months came to $9.85 billion, up 13.3%. Fiscal 2026 (the year ended Jan. 31, 2026) showed the same shape, with revenue up 13.1%, a step down from 16.4% growth the year before and from the high-teens rates of a few years ago.
Profitability is moving the other way. Operating margin has climbed from 2.5% in fiscal 2024 to 4.9% in fiscal 2025 to 7.5% in fiscal 2026, and trailing-12-month net income rose about 74% to $847 million.
Free cash flow is the more useful measure for a software company, though. Workday generated about $2.97 billion of it over the trailing 12 months, about 30% of revenue.
The AI question hangs over the growth line specifically. Workday prices mostly on its customers' headcount, and if AI lets them run leaner back offices, that headcount could stagnate even while the software stays essential. That risk helped push the stock lower through the first half of the year, before a sharp rebound took hold in July.
The numbers haven't settled it either way. Fiscal 2026's 13% growth is slower than the past, but it isn't the shrinkage the skeptics expect.
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A five-year forecast A forecast is only as honest as its assumptions, so here are mine. Assume revenue growth eases from 13% toward single digits, averaging about 10% a year. That puts revenue near $16 billion in five years. Assume free cash flow margin holds around 30%, which requires no improvement from today. That produces about $4.8 billion of annual free cash flow.
The last assumption is the multiple. Put a mature-software valuation of 18 to 20 times free cash flow on those dollars, and the business would be worth about $85 billion to $95 billion, or about $340 to $385 per share before accounting for changes in the share count. The stock trades at about $206 as of this writing.
From the current $51 billion value, that works out to annualized returns of about 11% to 13%.
Of course, the bear branch is the one the AI skeptics would draw. If headcount pressure caps growth at about 6% a year and the multiple compresses to 15 times free cash flow, the value lands near $60 billion, or about $240 per share -- closer to a 3% annualized return from here. Slower, but not a disaster, with free cash flow still growing the whole way.
I'd put more weight on the first branch than the second. Workday's margin climb is recent and steep, and a business converting 30% of revenue to cash can fund its own transition into whatever AI makes of enterprise software. If the talks end without a deal, part of Thursday's jump would likely reverse, and quickly. But the five-year case was never about the talks. It rests on growth near 10% and a free cash flow margin that holds where it is, and today, both assumptions still look reasonable to me.
Nine Mile Metals testuje u Nine Mile Brook přímé tavení rudy s Glencore, protože vrty ukázaly až 15% obsah mědi spolu s olovem, zinkem, stříbrem a zlatem. Zároveň znovu vyhodnocuje Wedge Mine, kde chce potvrdit 5 až 10 milionů tun zbývající mineralizace.
Junior miners spend most of their existence chasing grade. Nine Mile Metals Ltd. (CSE:NINE, OTCQB:VMSXF, FRA:KQ9) has the opposite problem at parts of its Bathurst Mining Camp land package: ore so rich that the region's processing infrastructure isn't built to handle it.
It's a strange complaint for a resource company to have. At Nine Mile Brook, drilling has returned intervals grading as high as 15% copper alongside significant lead, zinc, silver and gold. That grade is high enough that the company has entered an agreement with commodities giant Glencore to test whether some of the material could bypass conventional milling altogether and go straight to a smelter.
As Nine Mile CEO Patrick Cruickshank explains, a mill is optimized around a specific type of ore, so it would need to make adjustments for different material.
"The biggest concern is impurities, because the milling process typically helps separate and remove those elements," Cruickshank told Proactive.
Whole drill core has already been shipped to Glencore for direct-to-smelter testing, while two additional bulk samples are undergoing metallurgical and gravity separation testing, a roughly three-month process. Depending on the outcome, the lead-zinc component could ultimately be routed to a Glencore facility in Quebec, with copper-gold material potentially destined for the Horne Smelter.
Even logistics become a variable at this scale. A 3,000-tonne bulk sample carries an estimated contained metal value of roughly $4,000 per tonne, by Cruickshank's estimate, but shipping that tonnage to a facility like Kidd Creek in northern Ontario could cost close to $1 million on its own, and most mills want closer to 10,000 tonnes to justify dedicating a processing shift to unfamiliar ore. "Bulk sampling is not intended to be a revenue-generating activity, so it's a sensitive topic from a regulatory standpoint," Cruickshank noted. "The purpose is to test and validate the metallurgy and processing options."
The grade problem is really a symptom of a broader thesis Cruickshank has been building for two and a half years: that the Bathurst Mining Camp's most efficient path to new production doesn't run through greenfield discovery alone, it runs through mines that were shut down decades ago for reasons that no longer apply.
The Wedge Mine is the clearest example. Operated by Cominco through the 1950s and into the early 1960s before Teck took it over, Wedge produced an estimated 1.5 to 2.5 million tonnes of ore, almost entirely valued for lead and zinc. Silver was trading near $1 an ounce at the time, copper wasn't especially valuable, and gold assays weren't routinely run. "If miners couldn't see the gold, they generally ignored it," Cruickshank said.
Operations ended not because the deposit was exhausted, but because a support pillar collapsed after roughly a third of the vertical deposit had been mined. Repairing it wasn't economical at the commodity prices of the era, so the mine was abandoned with an estimated two-thirds of the system still in the ground.
Six decades later, Nine Mile is revisiting that resource with tools the original operators never had. Drone surveys and geophysical work over the past two years have effectively produced what Cruickshank calls a treasure map of the property. Drilling on the mine's undrilled eastern side added several million tonnes of mineralization, and last year's drilling on the southern portion of the deposit returned copper grades up to 8%. Borehole electromagnetic crews will soon be on site to survey seven holes, generating three-dimensional imagery that extends 300 to 400 metres in every direction from each hole and can distinguish new mineralization from old workings and voids.
The company has already identified three mineralized lenses at Wedge where historically only one was recognized. Cruickshank's stated goal is to demonstrate five to 10 million tonnes remaining, at grades strong enough, when combined with the silver and gold values showing up in recent drilling, to support a return to production.
The same logic underpins the company's approach at Nine Mile Brook, home to what Cruickshank describes as the highest-grade VMS lens ever discovered in the Bathurst camp, and at Canoe Landing, where Nine Mile's ground abuts a 32-million-tonne deposit owned by Wolfden Resources. "Whoever ultimately develops that deposit will almost certainly have to work with us, or vice versa, because together we control the full mineralized system," Cruickshank said, adding that a joint venture or acquisition are both options the company is watching.
It's a strategy built on a simple mining adage Cruickshank likes to repeat: the best place to find a new deposit is in the shadow of an existing one. With 45 known deposits already mapped across the Bathurst camp, he sees more value in applying modern geophysics and AI-assisted target modeling to old, well-understood ground than in searching blind.
Underlying all of it is a change in Nine Mile's financial position that Cruickshank argues is as important as any drill result.
Having raised just over $5.6 million recently, Cruickshank says the company doesn't expect to need additional financing for more than two years, freeing it to run a multi-target drill program across Wedge, Nine Mile Brook, California Lake and Canoe Landing Lake without the dilution pressure that has historically capped its share price rallies. A second drill rig is being mobilized directly to the West Wedge and Tribag targets, part of six priority drill targets identified since January.
That funding also changes the company's appetite for risk. "Previously, we didn't want to start drilling every target because our funding was limited," Cruickshank said. "Now we're fully funded, and we have access to better technology and more advanced algorithms, which gives us the confidence to be much more aggressive."
The bigger picture
Nine Mile's approach is unfolding against a favourable backdrop in New Brunswick, where the provincial government has stated its ambition to become Canada's leading jurisdiction for critical minerals and has pointed to the planned restart of the Lake George antimony project as evidence of that commitment. Cruickshank also points to the arrival of Kinross in the district, growing interest from companies like Rio Tinto and Glencore, and roughly 15 public companies now active in the camp as signs that capital is returning to a region long defined as a lead-zinc district but increasingly valued for its copper, silver and gold.
Whether that momentum translates into a producing mine at Wedge, a fifth lens at Nine Mile Brook, or a resolution to the Canoe Landing overlap with Wolfden, Cruickshank frames the company's task in straightforward terms: "At this point, it's about execution: drilling the programs, delivering results, and creating value."
Akcie Workday vzrostly téměř o 18 % po zprávě Reuters, že Silver Lake jedná o koupi společnosti. Akcie byly v pozdním obchodování několikrát pozastaveny.
Workday shares popped nearly 18% for their best day since 2016 on a report that private equity firm Silver Lake is in talks to buy the human resources software maker.
Shares were halted multiple times in late afternoon trading and the company's market value closed at nearly $51 billion following the report from Reuters.
The discussions have been ongoing in recent months, Reuters reported, citing sources familiar with the matter.
Workday and Silver Lake did not immediately respond to CNBC's request for comment.
Concerns that artificial intelligence tools will upend software's business model have weighed on Workday's shares in recent months. An acquisition in the space could hint at renewed software appetite despite these fears.
Read more CNBC tech newsAnthropic CFO Krishna Rao is leading early IPO meetings with investors and has not discussed valuation, sources sayAn inside look at SK Hynix $720 billion AI-fueled buildout that's taking over South KoreaDatabricks wraps $5 billion funding round at $190 billion valuationMeta and Nvidia plant 'very firm flag' in open-weight AI race led by Chinese LabsThe stock has rebounded from a recent selloff, but shares are down 7% year over year.
In March, co-founder Aneel Bhusri was renamed CEO after Carl Eschenbach stepped down. Bhusri has held various leadership roles at the company, including a stint as CEO and co-CEO.
"Aneel Bhusri, the CEO, and Egon [Durban] from Silver Lake know each other well through many connections. So we think certainly this could make sense, and I think this goes back to how badly hit software's been," analyst Brent Thill told CNBC's "Power Lunch."
In May, the company posted better-than-expected results and upped its forecast on AI tailwinds.
In the latest trading session, Workday (WDAY - Free Report) closed at $184.19, marking a +2.53% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.06% for the day. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
The stock of maker of human resources software has risen by 29.28% in the past month, leading the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 3.42%.
The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company is slated to reveal its earnings on August 27, 2026. The company's upcoming EPS is projected at $2.63, signifying a 19.00% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.63 billion, indicating a 12.18% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.81 per share and revenue of $10.66 billion. These totals would mark changes of +17.12% and +15.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.57% increase. At present, Workday boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 16.62 right now. This signifies a discount in comparison to the average Forward P/E of 22.13 for its industry.
It's also important to note that WDAY currently trades at a PEG ratio of 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.21 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Workday globálně spustil Workday Learning powered by Sana, AI nativní vzdělávací řešení pro personalizované školení, tvorbu kurzů a automatizaci learningových operací. Pro zákazníky Workday HCM je nyní obecně dostupné.
New Solution Combines Workday Learning and Sana Learn to Deliver Personalized AI Tutoring, Interactive Course Creation, and Automated Learning Operations
, /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), the enterprise AI platform for HR, finance, and IT, today announced the general availability of Workday Learning, powered by Sana. The solution combines Workday's trusted people and skills data with Sana's AI-native learning experience, so organizations can deliver personalized training grounded in the workforce data they already trust.
Combining Workday's trusted people and skills data with Sana's AI-native learning experience. As organizations race to become AI‑ready, many learning teams are still constrained by fragmented systems, manual workflows, and generic courses that can't keep up with the pace of change. When training is generic and irrelevant, employees find ways to route around it, and completion rates say little about real capability. Organizations need learning that is personalized, dynamic, and engaging enough that employees want to use it – while giving learning teams a faster way to create, update, translate, and manage programs.
Workday Learning, powered by Sana, brings AI into each part of the learning experience. Learners get a personal tutor that coaches them through complex material, breaks down difficult concepts into practical guidance, and recommends what to learn next. Creators use AI to turn existing, static material into engaging, interactive learning experiences, while reducing the time it takes to create, update, and translate courses for global audiences. Administrators get AI‑powered automation for assignments, campaigns, and other key learning tasks, helping Learning and Development (L&D) teams spend less time managing processes and more time shaping strategy and business impact.
"Checking the box isn't the same as building a skill," said Joel Hellermark, chief AI officer, Workday. "With a personal AI tutor, interactive quizzes, and learning tailored to each employee's role and skills, Workday Learning, powered by Sana, turns required training into engaging experiences employees can apply in their day-to-day work."
Learning That Meets Employees Where They Work
With Workday Learning, powered by Sana, learning feels like a natural part of the workday rather than a separate task. Embedded in the learning experience, a personal AI tutor gives employees in-the-moment support tailored to their role, skills, and goals. Employees can ask questions in natural language, get clear, actionable explanations tied to the material in front of them, practice new skills, and receive feedback in the format that works best for them. The solution also recommends personalized learning paths that help employees build the skills they need for their current role and what comes next.
Smart search helps employees find specific answers instead of digging through long modules. A question like "How do I handle a customer data request in Germany?" can surface a relevant lesson or policy explanation for that scenario, rather than requiring the learner to click through multiple generic compliance courses.
Because recommendations are informed by Workday Human Capital Management (HCM) data, including an employee's role, skills, organization, and location, employees see learning paths that reflect their actual context. For example, a manager who moves to a new region can be directed to relevant local policies and leadership resources, while an employee building skills for a new role can receive recommendations aligned to that role's requirements. Courses can also include interactive elements like quizzes, polls, and reflection prompts to help employees check their understanding as they go, turning learning from a one‑off event into an ongoing, adaptive experience.
From Blank Page to Live Course in Hours, Not Weeks
For instructional designers, L&D teams, and subject‑matter experts, Workday Learning, powered by Sana, is built to remove the production bottlenecks that slow learning down. Instead of starting from a blank slide deck, teams can upload existing PDFs, presentations, or other online course files and have them converted into structured, interactive courses in minutes.
The AI-powered editor helps teams transform static source material into engaging, interactive learning experiences. It proposes outlines, learning objectives, knowledge checks, and interactive elements that authors can review and adjust. An integrated writing assistant helps handle everyday tasks like drafting lesson text, simplifying long policies into learner‑friendly explanations, generating quiz questions, and adapting content for different roles or regions.
Built-in translation capabilities allow teams to localize courses into dozens of languages from the same source, helping global organizations roll out programs simultaneously across markets instead of in slow, sequential waves. Multiple contributors can work together in real time on the same course, simplifying reviews across learning, compliance, and business stakeholders.
Organizations using these AI‑powered authoring capabilities have reported reductions of up to 98% in content creation time for many learning programs, moving from multi‑week production cycles to hours and allowing teams to keep content aligned with fast‑changing regulations, products, and skills needs.
One Place to Run Learning Operations
For learning administrators and HR teams, Workday Learning, powered by Sana, provides one place to manage assignments, campaigns, reporting, and controls across both Workday‑native and Sana‑created content.
Learning paths update automatically when employees join, change roles, or move regions, reducing the amount of time administrators spend on manual list building for compliance, onboarding, and skills programs.
Because learning data sits alongside HR data in Workday, leaders and administrators can track how programs relate to outcomes like skills development, internal mobility, performance, and retention – not just completion rates. A safety program, for example, can be evaluated not only by completion rates but also in relation to incident data for specific regions.
Customers using these capabilities have seen learning operations move from reactive to proactive – with some reporting up to five times faster compliance reporting, three times higher learner engagement compared to legacy learning systems, and significant time savings for administrators and learning teams.
Customers Are Reshaping How Learning Gets Done
"At The Josh Bersin Company, we shifted our learning business to an AI-first model using Sana, moving thousands of learners into an interactive, always-on environment and converting a large library of programs into interactive courses in months rather than years," said Josh Bersin, global industry analyst and CEO of The Josh Bersin Company. "Now integrated into Workday Learning, Sana gives companies an extraordinary opportunity to modernize large learning libraries into AI-fueled personal experiences and maintain enterprise governance standards."
"At Accenture, reinvention is powered by continuous learning and the ability to build skills at speed and at scale," said Colin Anderson, chief operating officer, HR at Accenture. "We're evolving our learning ecosystem to be more intelligent, personalized, and aligned to the changing needs of our clients. Workday Learning, powered by Sana, is an important part of that journey and builds on top of the Accenture LearnVantage foundation—helping us deliver more adaptive, AI-enabled experiences that accelerate capability building across our workforce."
Availability
Workday Learning, powered by Sana, is now generally available globally as an integrated learning solution for Workday HCM customers. For organizations that do not use Workday HCM or Workday Financial Management, Sana Learn is available as a standalone offering. Existing guidance for Workday Learning will continue to apply in environments where Sana components cannot yet be used, including certain regulated and sovereign deployments.
For More Information
Join the webinar to see how Accenture will revamp its global learning program with Workday Learning, powered by Sana. Read the blog to learn how Workday used Sana Learn to improve L&D efficiency. Download the e-book to explore the new agentic operating model for L&D. About Workday
Workday operates at the heart of the enterprise – HR, finance, and IT – where the margin for error is effectively zero. By tightly coupling AI with the context, guardrails, and trusted processes that run the business, Workday goes beyond AI that assists work to agents that do the work and drive measurable outcomes. More than 11,500 organizations worldwide, including more than 65% of the Fortune 500, trust Workday to deliver. For more information about Workday, visit workday.com.
This press release contains forward-looking statements including, among other things, statements regarding Workday's plans, beliefs, and expectations. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to, risks described in our filings with the Securities and Exchange Commission ("SEC"), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.
Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently generally available are subject to change at Workday's discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.
In the latest trading session, Workday (WDAY - Free Report) closed at $137.99, marking a +1.91% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.72% for the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
Shares of the maker of human resources software have depreciated by 6.15% over the course of the past month, underperforming the Computer and Technology sector's loss of 6.12%, and the S&P 500's loss of 0.9%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. In that report, analysts expect Workday to post earnings of $2.62 per share. This would mark year-over-year growth of 18.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.63 billion, up 12.18% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.75 per share and a revenue of $10.66 billion, signifying shifts of +16.47% and +11.58%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.99% lower. At present, Workday boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 12.6 right now. Its industry sports an average Forward P/E of 19.82, so one might conclude that Workday is trading at a discount comparatively.
Meanwhile, WDAY's PEG ratio is currently 0.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WDAY in the coming trading sessions, be sure to utilize Zacks.com.
Workday musí čelit žalobě v Kalifornii kvůli tvrzení, že jeho nástroje AI pro nábor diskriminovaly uchazeče. Soudce odmítl většinu pokusu firmy žalobu zamítnout.
Item 1 of 2 The logo of Workday is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. REUTERS/Yves Herman
[1/2]The logo of Workday is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. REUTERS/Yves Herman Purchase Licensing Rights, opens new tab
CompaniesJune 22 (Reuters) - Workday (WDAY.O), opens new tab must face claims that its popular AI-powered human resources software weeded out job applicants at other companies in ways that violated California law and a federal ban on discrimination against workers with disabilities, a federal judge ruled on Monday.
U.S. District Judge Rita Lin in San Francisco rejected California-based Workday's claim that the state's anti-discrimination laws do not apply when it screens people based outside California who are applying for jobs in other states and countries.
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The proposed class action filed in 2023 is the first of its kind to broadly target the algorithmic decision-making underpinning AI screening software that has become very common among large employers, and could help shape how such litigation is conducted.
Lin first rejected Workday's attempts to dismiss the case in 2024, and on Monday mostly denied the company's bid to toss out recent amendments to the lawsuit. She said that because Workday allegedly participated in unlawful conduct from its California headquarters, it could be held liable for discrimination under state law.
The judge also refused to dismiss a claim that Workday's software can weed out job applicants based on "proxy indicators" of disabilities and illness, such as gaps in someone's employment history, in violation of the federal Americans with Disabilities Act.
Lin dismissed a claim that Workday's software discriminated against Asian American job applicants, saying the plaintiffs did not follow the proper procedure to add it to the lawsuit. The plaintiffs separately allege that Workday discriminated against Black job seekers, women and people older than 40.
Workday and lawyers for the plaintiffs did not immediately respond to requests for comment.
Numerous surveys have found that more than 80% of U.S. employers, and virtually all Fortune 500 companies, are utilizing AI tools such as those made by Workday in the hiring process. Government agencies and worker advocates have expressed concerns that AI tools can discriminate against job applicants when they are built using data that reflects existing biases.
But there has been little litigation so far over employers' use of the tools, which experts have said could be due to many job applicants not knowing when employers use AI software and the complexities of suing over cutting-edge technology.
Reporting by Daniel Wiessner in Albany, New York; Editing by Alexia Garamfalvi and Aurora Ellis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Dan Wiessner (@danwiessner) reports on labor and employment and immigration law, including litigation and policy making. He can be reached at [email protected].
