A Business at a Glance
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Workday, Inc.
WDAY
$36.2B
Mkt Cap
$135.34
+5.84%
Workday, Inc. (WDAY) has a current P/E ratio of 57.1, compared to its historical median P/E of 55.4. The stock is currently considered Expensive based on its historical valuation range.
Workday, Inc. (WDAY) has a 5-year average return on invested capital (ROIC) of 4.1%. This is below average and may indicate limited pricing power.
Workday, Inc. (WDAY) has a market capitalization of $34.4B. It is classified as a large-cap stock.
Workday, Inc. (WDAY) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 12.18%.
Based on historical P/E analysis, Workday, Inc. (WDAY) appears expensive. The current P/E of 57.1 is 3% above its historical median of 55.4. The estimated fair value CAGR (P/E method) is 283.9%.
Workday, Inc. (WDAY) operates in the Services-Computer Processing & Data Preparation industry, within the Technology sector.
Workday, Inc. (WDAY) reported annual revenue of $9.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Workday is an enterprise AI platform serving more than 11,500 organizations globally, including over 65% of the Fortune 500, with approximately 75 million users under contract. The company operates a cloud-based subscription model delivering unified solutions across human capital management (HCM), financial management, spend management, and planning, with AI embedded throughout the platform to automate and optimize business processes. Workday's business model combines direct sales through field teams aligned by geography and customer size, partner-driven reselling, and marketplace transactions, generating revenue from subscription contracts and professional services; the company emphasizes both landing new customers and expanding adoption within existing accounts through cross-selling additional modules and solutions. The platform's competitive moat derives from its unified architecture connecting HR and finance data, deep contextual insights into how people and money move through organizations, and a rapidly expanding ecosystem of AI agents—both organically developed and acquired—that solve complex business problems across industries ranging from financial services and government to healthcare, higher education, and manufacturing. Workday's go-to-market strategy targets C-suite executives (CFOs, CHROs, CIOs) and leverages a global partner ecosystem including resellers, implementation partners, and technology integrators; the company also operates Workday Marketplace for third-party applications and recently introduced Workday Build, an open developer platform enabling customers and partners to create custom AI-powered solutions. Recent strategic acquisitions of Flowise, Paradox, Sana, and Pipedream have expanded AI capabilities in conversational recruiting, enterprise knowledge management, and integration, while new offerings such as Flex Credits provide flexible, consumption-based pricing for AI solutions and platform capabilities.
【AI-driven platform transformation】 Management is prioritizing accelerated investment in agentic AI solutions across HCM and finance, viewing this as a generational opportunity to expand addressable markets and drive long-term growth. The company expects continued strong adoption of organically developed role-based agents and newly acquired AI capabilities (Sana, Paradox, Flowise) throughout fiscal 2027, with forward-deployed engineers and customer success teams focused on faster activation and reducing friction in agent deployment. Flex Credits, a flexible subscription model for AI solutions, is expected to gain momentum in the second half of fiscal 2027 and drive incremental revenue recognition into fiscal 2028, though near-term margin expansion will proceed at a slower pace than previously communicated due to elevated investment in product and go-to-market initiatives. Management remains confident in medium-term subscription revenue growth targets and expects the agentic roadmap to reignite growth in international markets and the customer base, while maintaining operational discipline through efficiency gains in people, processes, and systems.
| Metric | Target | Period |
|---|---|---|
| Subscription revenue | $9.925 billion–$9.950 billion | FY2027 |
| Q2 FY2027 subscription revenue | approximately $2.455 billion | Q2 FY2027 |
| CRPO growth | between 13.5% and 14.5% | Q2 FY2027 |
| Non-GAAP operating margin | 30.5% | FY2027 |
| Q2 non-GAAP operating margin | approximately 30% | Q2 FY2027 |
| Operating cash flow | $3.45 billion | FY2027 |
| Free cash flow | $3.180 billion | FY2027 |
| Capital expenditures | approximately $270 million | FY2027 |
Subscription revenue (FY2027): “We are reiterating our FY 2027 subscription revenue outlook of $9.925 billion-$9.950 billion, growth of 12%-13%.”
Q2 FY2027 subscription revenue (Q2 FY2027): “We expect Q2 FY 2027 subscription revenue to be approximately $2.455 billion, growth of 13%.”
CRPO growth (Q2 FY2027): “We anticipate CRPO to increase between 13.5% and 14.5% in Q2.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 9.9B | 9.6B | 8.4B | 7.3B | 6.2B | 5.1B |
| Net Income | 847M | 693M | 526M | 1.4B | -367M | 29M |
| EPS | $3.21 | $2.59 | $1.95 | $5.21 | $-1.44 | $0.12 |
| Free Cash Flow | 3.0B | 2.8B | 2.2B | 1.9B | 1.3B | 1.5B |
| ROIC | 12.9% | 5.9% | 5.2% | 14.1% | -5.4% | 0.6% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.45 | 0.49 | 0.33 | 0.37 | 0.53 | 0.41 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.0B | 721M | 415M | 183M | -222M | -116M |
| Operating Margin | 10.4% | 7.5% | 4.9% | 2.5% | -3.6% | -2.3% |
| ROE | 12.7% | 8.2% | 6.1% | 20.2% | -7.3% | 0.7% |
| Shares Outstanding | 254M | 268M | 270M | 265M | 255M | 242M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 788M | 1.2B | 1.6B | 2.1B | 2.8B | 3.6B | 4.3B | 5.1B | 6.2B | 7.3B | 8.4B | 9.6B | 9.9B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | 317M | 470M | 681M | 911M | 1.2B | 1.5B | 1.7B | 1.9B | 2.2B | 2.5B | 2.6B | 2.7B | 2.7B |
| SG&A | 106M | 149M | 198M | 223M | 347M | 368M | 414M | 486M | 599M | 702M | 820M | 912M | 916M |
| EBIT | -216M | -250M | -353M | -303M | -463M | -502M | -249M | -116M | -222M | 183M | 415M | 721M | 1.0B |
| Op. Margin | -27.4% | -21.6% | -22.4% | -14.1% | -16.4% | -13.8% | -5.8% | -2.3% | -3.6% | 2.5% | 4.9% | 7.5% | 10.4% |
| Net Income | -248M | -275M | -385M | -321M | -418M | -481M | -282M | 29M | -367M | 1.4B | 526M | 693M | 847M |
| Net Margin | -31.5% | -23.8% | -24.4% | -15.0% | -14.8% | -13.3% | -6.5% | 0.6% | -5.9% | 19.0% | 6.2% | 7.3% | 8.6% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40M | 0 | 103M | 420M | 137M |
| Returns on Capital | |||||||||||||
| ROIC | -20.8% | -22.7% | -30.7% | -16.0% | -14.8% | -14.9% | -7.6% | 0.6% | -5.4% | 14.1% | 5.2% | 5.9% | 12.9% |
| ROE | -20.8% | -22.7% | -30.7% | -22.5% | -23.6% | -21.6% | -9.8% | 0.7% | -7.3% | 20.2% | 6.1% | 8.2% | 12.7% |
| ROA | -11.0% | -10.8% | -12.8% | -7.8% | -8.0% | -7.8% | -3.6% | 0.3% | -3.1% | 9.2% | 3.1% | 3.8% | 5.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 102M | 259M | 351M | 466M | 607M | 865M | 1.3B | 1.7B | 1.7B | 2.1B | 2.5B | 2.9B | 3.2B |
| Free Cash Flow | -1.6M | 125M | 230M | 324M | 404M | 819M | 1.2B | 1.5B | 1.3B | 1.9B | 2.2B | 2.8B | 3.0B |
| Owner Earnings | -148M | -142M | -252M | -322M | -446M | -552M | 33M | 287M | 87M | 530M | 699M | 1.1B | -87M |
| CapEx | 104M | 134M | 121M | 142M | 203M | 46M | 55M | 171M | 364M | 232M | 269M | 162M | 206M |
| Maint. CapEx | 94M | 150M | 231M | 309M | 400M | 557M | 231M | 263M | 275M | 203M | 243M | 237M | 1.7B |
| Growth CapEx | 9.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 89M | 29M | 26M | 0 | 0 |
| D&A | 94M | 150M | 231M | 309M | 400M | 557M | 231M | 263M | 275M | 203M | 243M | 237M | 1.7B |
| CapEx/OCF | 101.6% | 51.7% | 34.5% | 30.4% | 9.3% | 5.3% | 4.3% | 2.8% | 3.1% | 10.8% | 10.9% | N/A | 6.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 75M | 423M | 700M | 2.9B | 4.2B |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.2% | 0.6% | 1.0% | 0.0% | 12.2% |
| Stock-Based Comp | 156M | 250M | 372M | 478M | 652M | 860M | 1.0B | 1.1B | 1.3B | 1.4B | 1.5B | 1.6B | 1.6B |
| Debt Repayment | 0 | 0 | 0 | 0 | 350M | 30K | 250M | 38M | 1.8B | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | -2.0B | -2.2B | -746M | -682M | -1.7B | -1.8B | -3.1B | -4.8B | -5.0B | -1.6B | -1.4B |
| Cash & Equiv. | 298M | 300M | 540M | 1.1B | 639M | 731M | 1.4B | 1.5B | 1.9B | 2.0B | 1.5B | 1.5B | 4.4B |
| Long-Term Debt | N/A | N/A | N/A | 1.1B | 972M | 1.0B | 692M | 617M | 3.0B | 3.0B | 3.0B | 3.0B | 2.0B |
| Debt/Equity | 1.02 | 1.30 | 0.00 | 0.94 | 0.62 | 0.51 | 0.55 | 0.41 | 0.53 | 0.37 | 0.33 | 0.49 | 0.45 |
| Interest Coverage | -6.9 | -7.8 | -11.7 | -6.8 | -7.7 | -8.6 | -3.6 | -6.8 | -2.2 | 1.6 | 3.6 | 6.3 | 12.1 |
| Equity | 1.2B | 1.2B | 1.3B | 1.6B | 2.0B | 2.5B | 3.3B | 4.5B | 5.6B | 8.1B | 9.0B | 7.8B | 6.7B |
| Total Assets | 2.4B | 2.7B | 3.3B | 4.9B | 5.5B | 6.8B | 8.7B | 10.5B | 13.5B | 16.5B | 18.0B | 18.1B | 16.1B |
| Total Liabilities | 1.2B | 1.6B | 2.0B | 3.4B | 3.6B | 4.3B | 5.4B | 6.0B | 7.9B | 8.4B | 8.9B | 10.3B | 9.4B |
| Intangibles | 14M | 15M | 49M | 34M | 313M | 308M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -822M | -1.1B | -1.4B | -1.7B | -2.1B | -2.6B | -2.9B | -2.7B | -3.1B | -1.7B | -1.2B | -512M | -290M |
| Working Capital | 1.5B | 1.4B | 1.2B | 1.9B | 270M | 125M | 519M | 146M | 3.5B | 4.9B | 5.0B | 2.1B | 57M |
| Current Assets | 2.1B | 2.4B | 2.5B | 4.0B | 2.7B | 3.1B | 4.8B | 5.2B | 8.1B | 9.9B | 10.5B | 8.4B | 6.6B |
| Current Liabilities | 641M | 923M | 1.3B | 2.1B | 2.4B | 3.0B | 4.3B | 5.1B | 4.6B | 5.1B | 5.5B | 6.4B | 6.5B |
| Per Share Data | |||||||||||||
| EPS | -1.35 | -1.45 | -1.94 | -1.55 | -1.93 | -2.12 | -1.19 | 0.12 | -1.44 | 5.21 | 1.95 | 2.59 | 3.21 |
| Owner EPS | -0.81 | -0.75 | -1.27 | -1.55 | -2.06 | -2.43 | 0.14 | 1.19 | 0.34 | 2.00 | 2.59 | 4.02 | -0.34 |
| Book Value | 6.54 | 6.46 | 6.44 | 7.63 | 9.04 | 10.97 | 13.81 | 18.77 | 21.91 | 30.49 | 33.49 | 29.17 | 26.28 |
| Cash Flow/Share | 0.56 | 1.36 | 1.77 | 2.25 | 2.80 | 3.81 | 5.34 | 6.83 | 6.50 | 8.11 | 9.12 | 10.98 | 9.97 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 183.7M | 189.7M | 198.3M | 207.2M | 216.7M | 226.7M | 237.3M | 241.7M | 254.9M | 265.1M | 269.7M | 267.6M | 254.3M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 55.4 | 138.7 | N/A | 42.1 |
| P/FCF | N/A | 94.2 | 73.1 | 75.9 | 92.5 | 51.7 | 44.7 | 38.9 | 35.0 | 39.9 | 33.3 | N/A | 11.6 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 391.7 | 163.6 | N/A | 32.4 |
| Price/Book | 12.8 | 10.3 | 13.2 | 15.6 | 19.1 | 17.0 | 16.5 | 12.9 | 8.1 | 9.5 | 8.1 | N/A | 5.2 |
| Price/Sales | 20.0 | 13.2 | 9.7 | 9.6 | 10.5 | 11.7 | 10.5 | 12.1 | 7.3 | 8.1 | 8.0 | N/A | 3.5 |
| FCF Yield | -0.0% | 1.1% | 1.4% | 1.3% | 1.1% | 1.9% | 2.2% | 2.5% | 2.9% | 2.5% | 3.0% | N/A | 8.6% |
| Market Cap | 14.4B | 11.8B | 16.8B | 24.6B | 37.4B | 42.3B | 54.2B | 58.3B | 45.3B | 76.5B | 72.9B | 0 | 34.4B |
| Avg. Price | 85.77 | 80.88 | 77.35 | 99.02 | 136.73 | 186.54 | 191.86 | 254.61 | 177.10 | 221.32 | 252.00 | 0.00 | 135.34 |
| Year-End Price | 78.66 | 62.03 | 84.77 | 118.81 | 172.50 | 186.68 | 228.56 | 238.18 | 177.66 | 288.63 | 270.43 | 0.00 | 135.34 |
Workday, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Workday, Inc. trades at 57.1x trailing earnings, compared to its 15-year median P/E of 55.4x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 11.2x vs a median of 44.7x. The company's 5-year average ROIC is 4.1%. Total shareholder yield (buybacks) is 12.2%. At current prices, the estimated annualized return to fair value is +22.3%.
Workday, Inc. (WDAY) has a net profit margin of 7.3%. This is a modest margin.
Workday, Inc. (WDAY) generated $2.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Workday, Inc. (WDAY) has a debt-to-equity ratio of 0.49. This indicates a conservatively financed balance sheet.
Workday, Inc. (WDAY) reported earnings per share (EPS) of $2.59 in its most recent fiscal year.
Workday, Inc. (WDAY) has a return on equity (ROE) of 8.2%. This indicates moderate shareholder returns.
The Ledger Terminal provides 16 years of financial data for Workday, Inc. (WDAY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Workday, Inc. (WDAY) has a book value per share of $29.17, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is prioritizing accelerated investment in agentic AI solutions across HCM and finance, viewing this as a generational opportunity to expand addressable markets and drive long-term growth. The company expects continued strong adoption of organically developed role-based agents and newly acquired AI capabilities (Sana, Paradox, Flowise) throughout fiscal 2027, with forward-deployed engineers and customer success teams focused on faster activation and reducing friction in agent deployment. Flex Credits, a flexible subscription model for AI solutions, is expected to gain momentum in the second half of fiscal 2027 and drive incremental revenue recognition into fiscal 2028, though near-term margin expansion will proceed at a slower pace than previously communicated due to elevated investment in product and go-to-market initiatives. Management remains confident in medium-term subscription revenue growth targets and expects the agentic roadmap to reignite growth in international markets and the customer base, while maintaining operational discipline through efficiency gains in people, processes, and systems.
Based on recent SEC filings and earnings calls, Workday, Inc. (WDAY) has provided the following forward guidance: Subscription revenue: $9.925 billion–$9.950 billion (FY2027); Q2 FY2027 subscription revenue: approximately $2.455 billion (Q2 FY2027); CRPO growth: between 13.5% and 14.5% (Q2 FY2027); Non-GAAP operating margin: 30.5% (FY2027); Q2 non-GAAP operating margin: approximately 30% (Q2 FY2027), plus 3 additional metrics.
Non-GAAP operating margin (FY2027): “We are increasing our FY 2027 non-GAAP operating margin guidance to 30.5%.”
Q2 non-GAAP operating margin (Q2 FY2027): “For Q2, we expect a non-GAAP operating margin of approximately 30%.”
Operating cash flow (FY2027): “We are maintaining our FY 2027 operating cash flow outlook of $3.45 billion”
Free cash flow (FY2027): “resulting in free cash flow of $3.180 billion, growth of 15%.”
Capital expenditures (FY2027): “we continue to expect FY 2027 capital expenditures of approximately $270 million”