Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 27th, 2026

First Trust Advisors LP raised its position in Workiva Inc. (NYSE:WK – Free Report) by 16.4% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 862,936 shares of the software maker’s stock after buying an additional 121,643 shares during the period. First Trust Advisors LP owned 1.52% of Workiva worth $51,457,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Madison Asset Management LLC increased its holdings in shares of Workiva by 16.2% during the first quarter. Madison Asset Management LLC now owns 61,752 shares of the software maker’s stock worth $3,682,000 after buying an additional 8,614 shares in the last quarter. Dimensional Fund Advisors LP grew its position in Workiva by 3.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 17,110 shares of the software maker’s stock worth $1,020,000 after acquiring an additional 638 shares during the last quarter. Swiss National Bank grew its position in Workiva by 0.8% during the 1st quarter. Swiss National Bank now owns 98,521 shares of the software maker’s stock worth $5,875,000 after acquiring an additional 800 shares during the last quarter. Allspring Global Investments Holdings LLC increased its holdings in Workiva by 10.4% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 3,962 shares of the software maker’s stock valued at $237,000 after purchasing an additional 373 shares in the last quarter. Finally, Principal Financial Group Inc. increased its holdings in Workiva by 23.6% during the 1st quarter. Principal Financial Group Inc. now owns 3,671 shares of the software maker’s stock valued at $219,000 after purchasing an additional 700 shares in the last quarter. 92.21% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades A number of equities analysts have commented on WK shares. Zacks Research lowered Workiva from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Robert W. Baird set a $74.00 target price on Workiva in a report on Wednesday, May 6th. Raymond James Financial reaffirmed an “outperform” rating and issued a $85.00 price target on shares of Workiva in a report on Wednesday, May 6th. Wall Street Zen upgraded shares of Workiva from a “buy” rating to a “strong-buy” rating in a research report on Saturday. Finally, Stifel Nicolaus decreased their price objective on shares of Workiva from $79.00 to $65.00 and set a “buy” rating on the stock in a report on Wednesday, May 6th. Ten equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $88.50.

Get Our Latest Stock Report on Workiva

Insider Activity In other news, Director Robert H. Herz sold 1,000 shares of the company’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $49.69, for a total transaction of $49,690.00. Following the transaction, the director owned 34,802 shares of the company’s stock, valued at $1,729,311.38. This represents a 2.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 4.77% of the stock is owned by company insiders.

Workiva Price Performance WK stock opened at $52.46 on Monday. The company has a 50 day moving average price of $50.45 and a 200 day moving average price of $59.39. Workiva Inc. has a fifty-two week low of $43.34 and a fifty-two week high of $97.10. The stock has a market capitalization of $2.94 billion, a PE ratio of 228.10 and a beta of 0.50.

Workiva (NYSE:WK – Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The software maker reported $0.77 EPS for the quarter, beating analysts’ consensus estimates of $0.66 by $0.11. The firm had revenue of $247.31 million for the quarter, compared to analyst estimates of $245.17 million. Workiva had a negative return on equity of 68.43% and a net margin of 1.53%.The business’s quarterly revenue was up 19.9% compared to the same quarter last year. During the same period last year, the company earned $0.14 EPS. Workiva has set its FY 2026 guidance at 2.850-2.950 EPS and its Q2 2026 guidance at 0.620-0.650 EPS. As a group, equities analysts expect that Workiva Inc. will post 0.92 earnings per share for the current fiscal year.

Workiva Company Profile (Free Report)

Workiva, originally founded as WebFilings in 2008, delivers a cloud-native platform designed to streamline and connect data, documents and teams for reporting and compliance. Its flagship Workiva platform supports a range of applications including financial reporting, regulatory filings, internal controls documentation, risk management and environmental, social and governance (ESG) disclosures. By centralizing data and automating workflows, the company helps organizations improve accuracy, transparency and auditability across critical reporting processes.

The Workiva platform offers modular solutions that integrate with existing enterprise systems and data sources.

See Also Five stocks we like better than Workiva RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding WK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Workiva Inc. (NYSE:WK – Free Report).

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NEW YORK--(BUSINESS WIRE)--Workiva Inc. (NYSE:WK), a leading, AI-powered platform for trust, transparency, and accountability, today announced that it will release financial results for the second quarter ended June 30, 2026 following the close of the market on August 4, 2026. The company will host a conference call and a live webcast to discuss its financial results. The conference call will begin at 5:00 p.m. Eastern Time on August 4, 2026, and can be accessed by dialing 1-833-630-1956 (U.S.

Choosing between a profitable veteran and a high-growth specialist often defines the journey for investors in NICE (NICE +1.93%) and Workiva (WK +4.12%) as they evaluate the better buy today.

NICE specializes in automating customer service through artificial intelligence, while Workiva provides a unified cloud platform for complex financial and regulatory reporting. Though they serve different corporate needs, both companies are competing for central roles in the digital transformation of modern enterprise operations.

The case for NICENICE focuses on providing AI-powered customer experience platforms that automate engagements and support contact-center operations worldwide. The company serves organizations in more than 150 countries, offering tools for digital messaging, intelligent routing, and workforce engagement to streamline how businesses interact with their clients. By integrating artificial intelligence into its core products, the company helps organizations handle high volumes of customer inquiries with less manual intervention. This strategy positions the firm as a key player among tech stocks that help businesses reduce costs through automation.

In FY 2025, revenue reached nearly $2.9 billion, representing a growth rate of approximately 7.7% over the previous year. The company reported a net income of close to $612.1 million for the same period, which is the total profit remaining after all expenses are paid. This performance resulted in a net margin of roughly 20.8%, which measures the percentage of revenue that turns into actual profit. This trend of rising net income reflects the company's ability to scale its cloud services while maintaining a disciplined approach to its spending.

As of its December 2025 balance sheet, the debt-to-equity ratio was 0.0x, meaning the company carries no debt relative to its shareholder equity. The current ratio stands at approximately 1.6x, indicating the company has $1.60 in current assets for every $1.00 in short-term liabilities. Free cash flow for FY 2025 was nearly $703.2 million, which is the cash a company generates after accounting for the money spent to maintain or expand its asset base. Note that stock-based compensation represented roughly 20.2% of operating cash flow, which inflates reported cash generation since this is a non-cash expense added back in the cash flow statement.

The case for WorkivaWorkiva provides a cloud-based platform designed for connected reporting and compliance across various workflows, including financial reporting and sustainability. The company serves over 6,600 organizations globally, including more than 85% of the Fortune 1,000, making it a standard for complex data management. However, more than 35% of its total revenue comes from customers using the platform specifically for SEC filings, which adds a layer of risk to the business. To mitigate this, the company is expanding its focus into environmental, social, and governance reporting to capture new regulatory demand.

For FY 2025, revenue hit close to $884.6 million, showing a robust growth rate of nearly 19.7% compared to the prior year. Despite this strong top-line expansion, the company reported a net loss of approximately $26.2 million for the fiscal year. This resulted in a net margin of roughly -3.0%, although this is an improvement from the deeper net losses recorded in earlier years. The focus for the company remains on capturing market share in the compliance space, even as it works toward consistent bottom-line profitability.

As of its December 2025 balance sheet, the current ratio is roughly 1.6x, suggesting a healthy ability to cover short-term financial obligations. Free cash flow for FY 2025 was approximately $138.0 million, representing the cash remaining after capital expenditures.

Risk profile comparisonNICE faces significant competition from large enterprise software providers and specialized technology firms that are also integrating generative AI into customer service tools. If the company fails to maintain its technological edge, it could see its market share erode as competitors offer lower-priced or more integrated solutions. Furthermore, as an international company, it is sensitive to fluctuations in global economic conditions that might cause large organizations to delay or reduce their spending on software upgrades. The rapid pace of innovation in artificial intelligence requires constant investment to prevent its platforms from becoming obsolete.

Workiva carries a heavy concentration risk, as over 35% of its revenue depends on customers using its platform for SEC filings, making it vulnerable to changes in financial reporting regulations. The company also faces intense competition from Microsoft and other diversified enterprise providers that may offer competing reporting tools within their existing software suites. Because it relies heavily on Amazon and its AWS infrastructure, any service disruptions or price hikes from its cloud provider could impact operations. Additionally, the company must manage complex global data privacy laws like GDPR, as a data breach involving sensitive financial information could lead to severe legal and financial penalties.

Valuation comparisonNICE currently trades at a significant discount to both Workiva and the broader tech sector based on its projected earnings and revenue multiples.

MetricNICEWorkivaSector BenchmarkForward P/E7.8x16.1x36.4xP/S ratio1.7x3.0xn/aSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

I'd go with Workiva. NICE is a well-established, profitable business with a strong foothold in AI-powered customer experience software, and its AI annual recurring revenue is growing at an impressive clip. But the stock has had a rough stretch, weighed down by weaker-than-expected revenue guidance and analyst price target cuts. For a company of its size and maturity, that's a harder story to get excited about right now.

Workiva, meanwhile, is hitting its stride. The company just crossed the billion-dollar revenue threshold, subscription revenue is growing at a healthy rate, and management raised its full-year outlook after a strong first quarter. And its platform sits at the center of enterprise compliance and reporting. This may not be the flashiest niche, but an incredibly sticky one.

The stock has pulled back quite a bit in 2026, which makes the entry point more attractive than it's been in a while. For a patient investor, that kind of setup is worth paying attention to.

ORSER Capital Management, LLC disclosed a sale of 43,215 shares of Workiva (WK +0.33%) in its April 16, 2026, SEC filing, with an estimated transaction value of $3.01 million based on quarterly average pricing.

What happenedAccording to an SEC filing dated April 16, 2026, ORSER Capital Management, LLC reduced its holding in Workiva by 43,215 shares during the first quarter of 2026. The estimated transaction value is $3.01 million, calculated using the average closing price over the quarter. The fund ended the period with 3,972 shares, and the position's quarter-end value decreased by $3.83 million, reflecting both trading and price movement.

What else to knowFollowing the sale, Workiva represents 0.15% of ORSER Capital Management's 13F AUM.

Top holdings after the filing:

NASDAQ: VGSH: $16.85 million (11.0% of AUM)NASDAQ: NVDA: $13.90 million (9.1% of AUM)NYSE: CRS: $9.67 million (6.3% of AUM)NYSEMKT: IQLT: $9.23 million (6.0% of AUM)NASDAQ: GOOGL: $8.56 million (5.6% of AUM)As of April 15, 2026, Workiva shares were priced at $56.47, down 18.7% over the past year, underperforming the S&P 500 by 47.45 percentage points.

Company OverviewMetricValuePrice (as of market close 2026-04-15)$56.47Market Capitalization$3.21 billionRevenue (TTM)$884.57 millionNet Income (TTM)$-26.17 millionCompany SnapshotOffers a cloud-based platform for compliance, regulatory reporting, data integration, and workflow management, serving as the core product suite.Serves public and private companies, government agencies, and higher-education institutions across global markets.Operates a SaaS (software-as-a-service) business model, supporting recurring revenue streams and integration with enterprise systems.Workiva Inc. provides secure, collaborative cloud-based compliance and regulatory reporting solutions worldwide, with its platform offering integration with enterprise systems and services supporting complex reporting and compliance needs.

What this transaction means for investorsOrser Capital Management, a Texas-based investment advisor, recently disclosed the sale of approximately 43,000 shares of Workiva during the first quarter of 2026 (the three months ending on March 31, 2026). Here are some key takeaways for investors.

Workiva is a software-as-a-service (SaaS) stock. Shares have struggled recently. Year to date, the stock has declined by 33%, as the software sector has struggled.

Yet, for investors, this recent decline could offer an opportunity. Workiva’s price-to-sales (P/S) ratio has declined to multiple-year lows. The stock’s P/S ratio now stands at 3.7x, within a whisper of its three-year low of 3.4x. Indeed, Workiva is now significantly below its three-year average P/S ratio of 6.8x.

For investors seeking exposure to the software sector, Workiva might be worth consideration, given its recent pullback and its multi-year lows in valuation.

Jake Lerch has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Workiva. The Motley Fool has a disclosure policy.

Technology stocks experienced a wild ride in the first quarter of 2026. Artificial intelligence (AI) went from a catalyst boosting share prices to a cause for the "Great Rotation" away from the sector this year. Wall Street became concerned that AI might dismantle existing business models of several companies, particularly those in the software-as-a-service (SaaS) sector.

With the arrival of Q2, the Great Rotation already appears to be over. The tech-heavy Nasdaq Composite achieved a record high close on April 15 and an intraday high on April 24 after plunging into correction territory in Q1.

Even so, some great companies enjoying growth thanks to AI remain available at attractive prices. Three stocks in this camp are Salesforce (CRM 0.71%), Workiva (WK +0.33%), and SentinelOne (S +0.00%).

Image source: Getty Images.

Reasons to consider Salesforce stock Wall Street sees AI agents taking over the work of customer service representatives, one of Salesforce's key markets. This was a factor in investors dumping the company's shares during the Great Rotation.

AI is expected to significantly transform the customer service sector, but Salesforce has already taken action to maintain its relevance with clients. It unveiled its own AI agents through the Agentforce brand in 2024. In fact, it's actively helping clientele adopt AI.

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Accelerating AI adoption means customers don't need to leave Salesforce to bring the technology to their organizations. Moreover, the company's AI not only helps clients reduce costs and improve efficiencies, it also helps to grow revenue. Salesforce is using AI agents to follow up on sales leads that were once ignored due to a lack of manpower.

The tech titan's efforts are paying off. It announced record revenue of $11.2 billion for its fiscal fourth quarter 2026, ended Jan. 31, up 12% year over year. In a sign that customers are embracing its AI offerings, Agentforce adoption is rising quickly; the number of accounts using AI jumped 50% in Q4 compared to Q3.

Why Workiva stock is a buy Workiva's software platform helps businesses with financial reporting and compliance with regulatory requirements. The Great Rotation punished the company as shares plunged nearly 40% year to date through April 27. The sell-off was driven by the fear that AI would disrupt Workiva's SaaS-based business.

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The reality is more nuanced. Workiva's role in supporting CFOs is not easily replaced by nascent AI rivals. The company is also ensuring that doesn't happen with AI capabilities integrated into its platform. This streamlines work for customers and delivers AI-powered insights for decision-making while protecting sensitive financial data.

I became interested in Workiva after New York-based hedge fund 13D Management scooped up over 50,000 shares worth nearly $4.5 million. Digging into the company, I found a thriving business.

Workiva's Q4 sales of $239 million represented 20% year-over-year growth. Its net income of $11.8 million is a significant reversal from a net loss of $8.8 million in the previous year.

One of Wall Street's concerns over SaaS companies is that revenue is reliant on the number of users. As AI removes users, revenue is expected to drop. Workiva doesn't charge based on users. Its fees depend on how customers use the platform, such as the number of features they want to access. For example, if a client needs to add carbon credits tracking, Workiva provides this.

SentinelOne's AI resilience SentinelOne integrated AI into its cybersecurity platform from the ground up, years before the technology's boom in the stock market. It was one of the reasons why I invested in the company long ago.

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Its shares were hit hard during the Great Rotation, falling to a 52-week low of $11.81 on April 10. Wall Street was spooked after AI giant Anthropic released an artificial intelligence agent capable of identifying software vulnerabilities, causing a widespread sell-off in cybersecurity stocks.

The fears are overblown because protection against cyberattacks is critical in today's digital-dependent society, making SentinelOne's services a necessity for its customers. Moreover, its status as an AI cybersecurity platform strengthens its position amid new, unproven AI competitors.

The company's excellent performance indicates customers remain loyal to its AI-powered platform. SentinelOne hit $1 billion in revenue, a 22% year-over-year increase, in its 2026 fiscal year ended Jan. 31. The company expects another year of strong growth in fiscal 2027, forecasting sales of $1.2 billion.

SentinelOne, along with Workiva and Salesforce, have seen share price valuations reach low points in 2026 as illustrated by their forward price-to-sales ratios (P/S).

Data by YCharts.

The chart shows all three experienced substantial drops in their forward sales multiples this year, suggesting their stocks are at attractive prices. Although SentinelOne and Salesforce have seen a recent rise in forward P/S, both remain at low levels compared to the past year.

Given that Salesforce, Workiva, and SentinelOne are all achieving revenue growth bolstered by the AI tailwind, their recent price corrections offer a compelling opportunity to buy their stocks for the long term.

Fiscal first quarter subscription & support revenue increased by 21%

Total revenue was $247 million, up 20% year-over-year

GAAP operating margin was 6.2%, non-GAAP operating margin was 18.4%

Repurchased $50 million worth of Class A common stock under the 2024 share repurchase plan

NEW YORK--(BUSINESS WIRE)--Workiva Inc. (NYSE: WK), a leading, AI-powered platform for trust, transparency, and accountability, today announced financial results for its first quarter ended March 31, 2026.

“Q1 2026 was another strong quarter as organizations across every industry turn to Workiva as their platform of trust for the Office of the CFO,” said Julie Iskow, President & Chief Executive Officer. “In a world where AI is accelerating the pace of change, the tolerance for error in financial reporting, sustainability, and governance, risk and compliance is zero, and our customers increasingly rely on us to ensure that every number and every narrative is accurate, traceable, and audit-ready.”

“Our first quarter results reflect strong execution across the business, with 21% subscription revenue growth and a non-GAAP operating margin of 18.4%, a 1,600 basis-point improvement compared to a year ago,” said Barbara Larson, Chief Financial Officer. “This level of margin expansion, while sustaining durable top-line growth, demonstrates the operating leverage we are building in the business and reflects the disciplined foundation we've established to drive growth at scale.”

First Quarter 2026 Financial Results

Revenue: Total revenue for the first quarter of 2026 reached $247 million, an increase of 20% from $206 million in the first quarter of 2025. Subscription and support revenue contributed $225 million, up 21% versus the first quarter of 2025. Professional services revenue was $22 million, up slightly from the first quarter of 2025. Operating Margin: GAAP operating margin for the first quarter of 2026 was 6.2% compared to (12.0)% in the prior year's first quarter. Non-GAAP operating margin was 18.4% compared to 2.4% in the first quarter of 2025. GAAP Net Income (Loss): GAAP net income for the first quarter of 2026 was $19 million compared with a net loss of $(21) million for the prior year's first quarter. GAAP net income per basic share and diluted share was $0.33, compared with a net loss per basic and diluted share of $(0.38) in the first quarter of 2025. Non-GAAP Net Income: Non-GAAP net income for the first quarter of 2026 was $49 million compared with non-GAAP net income of $8 million in the prior year's first quarter. Non-GAAP net income per basic share and diluted share in the first quarter of 2026 was $0.86 and $0.77, respectively, compared with non-GAAP net income per basic share and diluted share of $0.15 and $0.14, respectively, in the first quarter of 2025. Liquidity: As of March 31, 2026, Workiva had cash, cash equivalents, and marketable securities totaling $863 million, compared with $892 million as of December 31, 2025. Workiva had $71 million aggregate principal amount of 1.125% convertible senior notes due in 2026, $702 million aggregate principal amount of 1.250% convertible senior notes due in 2028, and $14 million of finance lease obligations outstanding as of March 31, 2026. Key Metrics and Recent Business Highlights

Customers: Workiva had 6,665 customers as of March 31, 2026, a net increase of 280 customers from March 31, 2025. Retention Rate: As of March 31, 2026, Workiva's gross retention rate was 97%, and the net retention rate was 112%. Net retention includes changes in both solutions and pricing for existing customers. Large Contracts: As of March 31, 2026, Workiva had 2,575 customers with an annual contract value (“ACV”) of more than $100,000, up 24% from 2,079 customers at March 31, 2025. Workiva had 605 customers with an ACV of more than $300,000, up 38% from 439 customers in the first quarter of 2025. Workiva had 265 customers with an ACV of more than $500,000, up 39% from 191 customers in the first quarter of 2025. Share Repurchase Plan: On July 30, 2024, our board of directors authorized a share repurchase plan for up to $100 million of our outstanding Class A common stock. On February 16, 2026, our board of directors modified the repurchase plan to authorize an additional $250 million of the Company’s outstanding Class A common stock for repurchase under the plan. During the first quarter of 2026, Workiva purchased approximately 763,000 shares for $50 million under the plan. As of March 31, 2026, approximately $228 million remained available under the plan for future share repurchases. Financial Outlook

As of May 5, 2026, Workiva is providing guidance as follows:

Second Quarter 2026 Guidance:

Total revenue is expected to be in the range of $250 million to $252 million. GAAP operating margin is expected to be in the range of 1.6% to 2.2%. Non-GAAP operating margin is expected to be in the range of 14.5% to 15.0%. GAAP net income per diluted share is expected to be in the range of $0.12 to $0.15 using 57.0 million shares. Non-GAAP net income per diluted share is expected to be in the range of $0.62 to $0.65 using 63.2 million shares. Full Year 2026 Guidance:

Total revenue is expected to be in the range of $1.037 billion to $1.041 billion. GAAP operating margin is expected to be in the range of 3.8% to 4.3%. Non-GAAP operating margin is expected to be in the range of 16.0% to 16.5%. GAAP net income per diluted share is expected to be in the range of $0.89 to $0.99 using 57.1 million shares. Non-GAAP net income per diluted share is expected to be in the range of $2.85 to $2.95 using 62.3 million shares. Free cash flow margin is expected to be approximately 20%. Quarterly Conference Call

Workiva will host a webcast today at 5:00 p.m. Eastern Time to review the Company’s financial results for the first quarter 2026, in addition to discussing the Company’s outlook for the second quarter and full year 2026. The call can be accessed by dialing 1-833-630-1956 (U.S. domestic) or 1-412-317-1837 (international). Additionally, a live webcast and replay will be available at https://investor.workiva.com/news-events/events.

About Workiva

Workiva Inc. (NYSE: WK) powers trust, transparency, and accountability. Accounting, finance, sustainability, risk and audit teams from more than 6,600 organizations, including over 85% of Fortune 1,000 companies rely on Workiva for their mission-critical work. We transform how customers connect data, unify processes, and empower teams in a secure, audit-ready, AI-powered collaborative platform. Learn more at workiva.com.

Non-GAAP Financial Measures

The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and amortization of acquisition-related intangible assets. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release.

Workiva believes that the use of non-GAAP gross profit, non-GAAP income from operations and non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, free cash flow and free cash flow margin is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Workiva’s management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating Workiva’s own operating results over different periods of time.

Non-GAAP gross profit is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets attributable to cost of revenues from gross profit. Non-GAAP income from operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from operations. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP income from operations by revenues. Non-GAAP net income is calculated by excluding stock-based compensation expense, net of tax and amortization expense for acquisition-related intangible assets from net income (loss). Non-GAAP net income per share is calculated by dividing non-GAAP net income by the weighted- average shares outstanding as presented in the calculation of GAAP net income (loss) per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Workiva believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus we do not believe they are reflective of ongoing operations.

Free cash flow, a non-GAAP measure, represents cash flow from operating activities less purchase of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenue. We consider free cash flow and free cash flow margin to be liquidity measures that provide useful information to investors about the amount of cash generated or used by the business.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business.

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance," "target," "goal," "project," "continue to," "confident," or the negative of those terms or other comparable terminology.

Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

WORKIVA INC.

  CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

  Three months ended March 31,

2026

2025

(unaudited)

Revenue

Subscription and support

$

225,355

$

185,512

Professional services

21,951

20,768

Total revenue

247,306

206,280

Cost of revenue

Subscription and support (1)

35,183

34,062

Professional services (1)

13,362

14,280

Total cost of revenue

48,545

48,342

Gross profit

198,761

157,938

Operating expenses

Research and development (1)

52,913

53,780

Sales and marketing (1)

104,485

101,671

General and administrative (1)

26,042

27,237

Total operating expenses

183,440

182,688

Income (loss) from operations

15,321

(24,750

)

Interest income

8,103

8,747

Interest expense

(3,194

)

(3,195

)

Other income (expense), net

398

(233

)

Income (loss) before provision for income taxes

20,628

(19,431

)

Provision for income taxes

1,632

1,940

Net income (loss)

$

18,996

$

(21,371

)

Net income (loss) per common share:

Basic

$

0.33

$

(0.38

)

Diluted

$

0.33

$

(0.38

)

Weighted-average common shares outstanding

Basic

56,885,568

56,157,533

Diluted

58,441,679

56,157,533

(1) Includes stock-based compensation expense as follows:

Three months ended March 31,

2026

2025

(unaudited)

Cost of revenue

Subscription and support

$

2,848

$

2,433

Professional services

1,189

996

Operating expenses

Research and development

6,401

6,050

Sales and marketing

9,847

9,751

General and administrative

8,322

8,658

WORKIVA INC.

  CONSOLIDATED BALANCE SHEETS

(in thousands)

  March 31, 2026

December 31, 2025

(unaudited)

Assets

Current assets

Cash and cash equivalents

$

334,260

$

338,769

Marketable securities

529,116

552,852

Accounts receivable, net

138,109

168,984

Deferred costs

64,793

62,619

Other receivables

7,925

10,383

Prepaid expenses and other

33,939

28,778

Total current assets

1,108,142

1,162,385

Property and equipment, net

19,832

20,546

Operating lease right-of-use assets

10,577

13,986

Deferred costs, non-current

53,958

59,767

Goodwill

204,174

206,164

Intangible assets, net

21,511

22,270

Other assets

7,184

8,453

Total assets

$

1,425,378

$

1,493,571

Liabilities and Stockholders’ Deficit

Current liabilities

Accounts payable

$

10,665

$

8,932

Accrued expenses and other current liabilities

89,316

113,115

Deferred revenue

514,310

547,919

Convertible senior notes, current

71,140

71,072

Finance lease obligations

623

614

Total current liabilities

686,054

741,652

Convertible senior notes, non-current

696,807

696,263

Deferred revenue, non-current

35,001

37,305

Other long-term liabilities

102

92

Operating lease liabilities, non-current

6,965

10,472

Finance lease obligations, non-current

13,064

13,223

Total liabilities

1,437,993

1,499,007

Stockholders’ deficit

Common stock

57

57

Additional paid-in-capital

699,649

720,923

Accumulated deficit

(714,856

)

(733,852

)

Accumulated other comprehensive income

2,535

7,436

Total stockholders’ deficit

(12,615

)

(5,436

)

Total liabilities and stockholders’ deficit

$

1,425,378

$

1,493,571

WORKIVA INC.

  CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

  Three months ended March 31,

2026

2025

(unaudited)

Cash flows from operating activities

Net income (loss)

$

18,996

$

(21,371

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities

Depreciation and amortization

2,516

2,893

Stock-based compensation expense

28,607

27,888

(Recovery of) provision for doubtful accounts

(118

)

12

Accretion of premiums and discounts on marketable securities, net

(801

)

(1,695

)

Amortization of debt discount and issuance costs

612

610

Gain on lease modification

(307

)

—

Deferred income tax

(269

)

(64

)

Changes in assets and liabilities:

Accounts receivable

30,156

30,636

Deferred costs

2,878

4,093

Operating lease right-of-use assets

1,260

1,329

Other receivables

2,439

994

Prepaid expenses and other

(5,221

)

(5,653

)

Other assets

1,233

(648

)

Accounts payable

1,971

6,651

Deferred revenue

(33,255

)

(18,438

)

Operating lease liabilities

(1,167

)

(831

)

Accrued expenses and other liabilities

(23,054

)

(33,764

)

Net cash provided by (used in) operating activities

26,476

(7,358

)

Cash flows from investing activities

Purchase of property and equipment

(728

)

(763

)

Purchase of marketable securities

(91,501

)

(102,965

)

Maturities of marketable securities

114,350

94,614

Acquisitions, net of cash acquired

(750

)

—

Purchase of intangible assets

(26

)

(19

)

Net cash provided by (used in) investing activities

21,345

(9,133

)

Cash flows from financing activities

Proceeds from option exercises

729

631

Taxes paid related to net share settlements of stock-based compensation awards

(8,662

)

(12,922

)

Proceeds from shares issued in connection with employee stock purchase plan

8,052

7,535

Repurchases of Class A common stock

(50,000

)

(40,118

)

Principal payments on finance lease obligations

(150

)

(138

)

Net cash used in financing activities

(50,031

)

(45,012

)

Effect of foreign exchange rates on cash

(2,299

)

1,889

Net decrease in cash, cash equivalents, and restricted cash

(4,509

)

(59,614

)

Cash, cash equivalents, and restricted cash at beginning of period

339,481

302,350

Cash, cash equivalents, and restricted cash at end of period

$

334,972

$

242,736

Three months ended March 31,

2026

2025

(unaudited)

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets

Cash and cash equivalents at end of period

$

334,260

$

242,024

Restricted cash included within prepaid expenses and other at end of period

712

712

Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows

$

334,972

$

242,736

TABLE I

WORKIVA INC.

RECONCILIATION OF NON-GAAP INFORMATION

(in thousands, except share and per share)

  Three months ended March 31,

2026

2025

Gross profit, subscription and support

$

190,172

$

151,450

Add back: Stock-based compensation

2,848

2,433

Add back: Amortization of acquisition-related intangibles

996

909

Gross profit, subscription and support, non-GAAP

$

194,016

$

154,792

Gross profit, professional services

$

8,589

$

6,488

Add back: Stock-based compensation

1,189

996

Gross profit, professional services, non-GAAP

$

9,778

$

7,484

Gross profit

$

198,761

$

157,938

Add back: Stock-based compensation

4,037

3,429

Add back: Amortization of acquisition-related intangibles

996

909

Gross profit, non-GAAP

$

203,794

$

162,276

Cost of revenue, subscription and support

$

35,183

$

34,062

Less: Stock-based compensation

2,848

2,433

Less: Amortization of acquisition-related intangibles

996

909

Cost of revenue, subscription and support, non-GAAP

$

31,339

$

30,720

Cost of revenue, professional services

$

13,362

$

14,280

Less: Stock-based compensation

1,189

996

Cost of revenue, professional services, non-GAAP

$

12,173

$

13,284

Research and development

$

52,913

$

53,780

Less: Stock-based compensation

6,401

6,050

Less: Amortization of acquisition-related intangibles

—

495

Research and development, non-GAAP

$

46,512

$

47,235

Sales and marketing

$

104,485

$

101,671

Less: Stock-based compensation

9,847

9,751

Less: Amortization of acquisition-related intangibles

491

447

Sales and marketing, non-GAAP

$

94,147

$

91,473

General and administrative

$

26,042

$

27,237

Less: Stock-based compensation

8,322

8,658

General and administrative, non-GAAP

$

17,720

$

18,579

Income (loss) from operations

$

15,321

$

(24,750

)

Add back: Stock-based compensation

28,607

27,888

Add back: Amortization of acquisition-related intangibles

1,487

1,851

Income from operations, non-GAAP

$

45,415

$

4,989

GAAP operating margin

6.2

%

(12.0

)%

Non-GAAP operating margin

18.4

%

2.4

%

Net income (loss)

$

18,996

$

(21,371

)

Add back: Stock-based compensation

28,607

27,888

Add back: Amortization of acquisition-related intangibles

1,487

1,851

Net income, non-GAAP

$

49,090

$

8,368

Net income (loss) per basic share

$

0.33

$

(0.38

)

Add back: Stock-based compensation

0.50

0.50

Add back: Amortization of acquisition-related intangibles

0.03

0.03

Net income per basic share, non-GAAP

$

0.86

$

0.15

Net income (loss) per diluted share

$

0.33

$

(0.38

)

Net income per diluted share, non-GAAP

$

0.77

$

0.14

Weighted-average common shares outstanding - diluted

58,441,679

56,157,533

Weighted-average common shares outstanding - diluted, non-GAAP

63,684,917

58,480,150

Net cash provided by (used in) operating activities

$

26,476

(7,358

)

Purchase of property and equipment

(728

)

(763

)

Free cash flow

$

25,748

$

(8,121

)

Operating cash flow margin

10.7

%

(3.6

)%

Free cash flow margin

10.4

%

(3.9

)%

TABLE II

WORKIVA INC.

RECONCILIATION OF NON-GAAP GUIDANCE

  Three months ending
June 30, 2026

Year ending
December 31, 2026

GAAP operating margin

1.6

%

-

2.2

%

3.8

%

-

4.3

%

Add back: Stock-based compensation

12.3

%

-

12.2

%

11.6

%

-

11.6

%

Add back: Amortization of acquisition-related intangibles

0.6

%

-

0.6

%

0.6

%

-

0.6

%

Non-GAAP operating margin

14.5

%

-

15.0

%

16.0

%

-

16.5

%

Net income per diluted share, GAAP

$

0.12

-

$

0.15

$

0.89

-

$

0.99

Add back: Stock-based compensation

0.54

-

0.54

2.11

-

2.11

Add back: Amortization of acquisition-related intangibles

0.03

-

0.03

0.11

-

0.11

Effect of potentially dilutive securities

(0.07

)

-

(0.07

)

(0.26

)

-

(0.26

)

Net income per diluted share, non-GAAP

$

0.62

-

$

0.65

$

2.85

-

$

2.95

Weighted-average common shares used in calculating GAAP earnings per share, diluted

57,000,000

57,000,000

57,100,000

57,100,000

Weighted-average common shares used in calculating non-GAAP earnings per share, diluted

63,200,000

63,200,000

62,300,000

62,300,000

More News From Workiva Inc.

Workiva Inc. (WK) Q1 2026 Earnings Call Transcript

Many software-as-a-service (SaaS) companies have plummeted in value in 2026, as investors worry that artificial intelligence (AI) will disrupt their businesses. Workiva (WK +0.33%) is one of the victims of the so-called "SaaSpocalypse," and following a 39% decline this year, its stock is now down 68% from its 2021 record high.

The company typically flies under the radar because of its relatively "boring" portfolio of software products, which help organizations manage their compliance obligations. However, it's generating solid revenue growth, and it's attracting high-spending customers at a lightning-fast pace.

As a result, the overwhelming majority of the analysts tracked by The Wall Street Journal have given Workiva a buy rating, and none recommend selling. Their average price target also points to strong upside over the next 12 months, so here's why it might be time to buy the dip.

Image source: Getty Images.

Workiva probably won't fall victim to AI Managers inside large organizations are often tasked with compiling data from across dozens or even hundreds of digital applications that their employees use each day. This is a time-consuming endeavor prone to errors, as critical information is manually transferred to a central location.

Workiva's software solves those problems by plugging into every major third-party productivity app, storage platform, and system of record, and automatically aggregating all of their data onto one dashboard. From there, managers can use Workiva's ready-made templates to rapidly compile reports for regulators or even their executive team.

There are a couple of reasons Workiva probably won't fall victim to the broader AI revolution. First, unlike most software companies, Workiva charges its customers based on the value it provides, rather than using a traditional per-user subscription model. This nullifies concerns that Workiva will lose revenue if AI shrinks the global workforce.

Second, data aggregation software needs to be fast, seamless, and perfectly accurate. A large company could technically use AI coding tools to build its own version of Workiva, but there is no guarantee it will be as proficient. When crafting regulatory reports, nothing less than perfection is acceptable, which is why I think most companies would prefer to rely on the experts at a third-party vendor like Workiva.

Today's Change

(

0.33

%) $

0.16

Current Price

$

49.29

Plus, Workiva is actually using AI to its advantage right now. It launched an AI-powered assistant called Workiva AI last year, which introduced new capabilities to its platform. With a few simple prompts, it can turn tabulated data into useful insights, or draft generic disclosures for regulatory filings. Moreover, the company launched a series of AI agents this year designed to uncover risks, identify trends in data, and summarize complex disclosures in plain language.

No sign of a spending slowdown Workiva generated $247 million in revenue during the first quarter, which was up 20% year over year, and topped the company's $245 million forecast. The strong result prompted management to issue revenue guidance of $1.039 billion for the whole of 2026, which was a modest increase of $1 million from its prior forecast.

The company's customer base grew by just 4% during the first quarter to 6,665 enterprises, but it experienced far more explosive growth among the highest-spending cohorts. The company had 605 customers with annual contract values of at least $300,000, which jumped by 38%, and 265 customers with annual contract values of at least $500,000, which surged by 39%.

Moreover, Workiva's net revenue retention rate was 112% in the first quarter, up from 110% in the same quarter last year. This suggests existing customers increased their spending by 12% over the 12-month period.

To cap off the strong quarter, Workiva held its operating costs steady, which resulted in a generally accepted accounting principles (GAAP) profit of $18.9 million. That was a big positive swing from the $21.3 million loss the company generated in the year-ago period.

Workiva stock looks cheap The Wall Street Journal tracks 13 analysts who cover Workiva stock, and 11 have given it a buy rating. The remaining two are in the overweight (bullish) camp, so no analysts recommend selling.  The analysts have an average price target of $84.55, implying a potential upside of 71% in the stock over the next 12 months. The Street-high target of $102 points to an even higher potential return of 106%.

In my view, both of those targets are achievable because of Workiva's valuation. Its price-to-sales (P/S) ratio is just 3.2, which is not only the cheapest level in five years, but it's also more than 50% below its five-year average of 8.6.

WK PS Ratio data by YCharts

As a result, I think Workiva stock could be a solid addition to any diversified portfolio, especially for long-term investors who are willing to hold for the next three to five years, by which point the recent SaaSpocalypse will probably be nothing more than a memory.

-

NEW YORK--(BUSINESS WIRE)--Workiva Inc. (NYSE:WK), a leading, AI-powered platform for trust, transparency, and accountability, today announced its participation at the following events:

J.P. Morgan 2026 Global Technology, Media and Communications Conference: Julie Iskow, President and Chief Executive Officer, will present on May 20, 2026 at 9:20 a.m. Eastern Time. William Blair 46th Annual Growth Stock Conference: Barbara Larson, Chief Financial Officer, will present on June 3, 2026 at 4:00 p.m. Central Time. Baird 2026 Global Consumer, Technology & Services Conference: Julie Iskow, President and Chief Executive Officer, will present on June 4, 2026 at 12:15 p.m. Eastern Time. A live webcast and replay will be available for a limited time at https://investor.workiva.com/news-events/events.

About Workiva
Workiva Inc. (NYSE: WK) powers trust, transparency, and accountability. Accounting, finance, sustainability, risk and audit teams from more than 6,600 organizations, including over 85% of Fortune 1,000 companies rely on Workiva for their mission-critical work. We transform how customers connect data, unify processes, and empower teams in a secure, audit-ready, AI-powered collaborative platform. Learn more at workiva.com.

More News From Workiva Inc.

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Workiva Inc. (WK) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

On May 21, 2026, Workiva Inc WK shares rose 3.0% today, bringing the current price to $50.02. The stock has seen a 52-week range between $43.34 and $97.10, reflecting significant volatility over the past year.

GF Value™ verdict: Current price is $50.02 vs GF Value™ of $105.82, indicating a potential upside of 52.7%.GF Score™ is 59/100, suggesting average performance in terms of long-term returns.Most notable signal: The momentum rank is 2/10, indicating weak price trends. Is WK Overvalued or Undervalued? According to GF Value™, Workiva Inc is currently undervalued, with a substantial margin of safety as the shares trade at $50.02 compared to a GF Value™ estimate of $105.82. This presents an opportunity for potential investors, as the stock is priced 52.7% below its intrinsic value. However, the GF Valuation label indicates that the stock may also represent a possible value trap, which suggests caution should be exercised before making any decisions. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The significant gap between the current price and the GF Value™ estimate highlights the potential for recovery, but investors must consider the inherent risks associated with a low GF Score™ and weak financial strength ratings, which could impact future performance.

How Does WK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 208.4x 219.8x Forward P/E 17.8x N/A Workiva's current P/E (TTM) of 208.4x is slightly below its 5-year median P/E of 219.8x, suggesting that the stock is not trading at an elevated level compared to its historical valuation. The forward P/E of 17.8x indicates expectations of improved earnings, which aligns with the GF Value™ verdict that the stock may have substantial upside potential. This P/E analysis generally agrees with the GF Value™ assessment, reinforcing the notion that WK might be undervalued, albeit with caution advised due to other risk factors.

What Does WK's GF Score™ Tell Us? Metric Rating GF Score™ 59/100 Financial Strength 3/10 Profitability 3/10 Growth 9/10 Valuation 2/10 Momentum 2/10 The GF Score™ of 59/100 indicates average performance in terms of long-term returns. The strongest aspect of WK's score is its growth rank of 9/10, reflecting robust potential for future earnings growth. Conversely, the weakest areas are the financial strength and valuation ranks, both at 3/10 and 2/10 respectively, which raise concerns regarding the company’s stability and current pricing. These mixed signals suggest that while growth opportunities exist, caution is warranted due to underlying financial challenges.

What Are Insiders Doing with WK Stock? There have been no insider transactions reported for Workiva Inc in the last three months. The lack of insider activity may suggest that company executives are not currently buying or selling shares, which could indicate a wait-and-see approach regarding the stock's performance. Insider buying often reflects confidence in the company's future, so this absence of activity may be a signal for cautious optimism.

What This Means for Investors Based on the GF Value™ assessment, Workiva Inc WK is currently undervalued. The significant margin of safety presents an opportunity, but potential investors should remain mindful of the risk factors associated with the company's financial health and market momentum.

For the complete analysis, visit the Workiva Inc WK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is WK's GF Score™?

The GF Score™ for Workiva Inc is 59/100, indicating average performance and potential for long-term returns based on historical data.

Is WK overvalued or undervalued?

WK is considered undervalued according to GF Value™, with shares trading significantly below the estimated intrinsic value.

What is WK's P/E ratio?

WK's P/E (TTM) is 208.4x, which is below its 5-year median of 219.8x, suggesting the stock is trading at a relatively lower valuation compared to its historical performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Workiva Inc. (WK) Discusses Practical Strategies for Advancing AI Adoption in Finance and Accounting Transcript

Workiva (WK - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Workiva basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Workiva, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for WorkivaFor the fiscal year ending December 2026, this maker of software for managing regulatory filings is expected to earn $2.90 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Workiva. Over the past three months, the Zacks Consensus Estimate for the company has increased 80.4%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Workiva to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.