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Commanding a market cap of $70.3 billion, Workday, Inc. (WDAY) is a cloud-based enterprise software provider specializing in financial management, human capital management, and analytics. Founded in 2005, the company offers user-friendly solutions for payroll, talent management, accounting, and workforce planning, leveraging AI and machine learning for real-time insights.
The California-based company is expected to unveil its fiscal Q4 earnings results before the market opens on Monday, Feb. 24.
Ahead of the event, analysts anticipate WDAY to report a profit of $0.58 per share, up 176.2% from $0.21 per share in the same quarter last year. The company has surpassed Wall Street's earnings projections in two of the last four quarters, while missing on two other quarters.
For fiscal 2025, analysts expect WDAY to report EPS of $2.63, up 911.5% from $0.26 in fiscal 2024.
Over the past year, WDAY has dropped 6.3%, underperforming the S&P 500 Index's ($SPX) 24.1% gain and the Technology Select Sector SPDR Fund's (XLK) 15.8% rise over the same period.
Workday has underperformed the broader market over the past year due to a slower-than-expected growth in client headcount and market volatility, particularly within the tech sector.
On Jan. 8, Workday rose over 2% after Deutsche Bank Aktiengesellschaft (DB) upgraded the stock to a "Buy" from "Hold," setting a price target of $300.
Additionally, on Dec. 9, WDAY shares jumped 9.2% after being added to the S&P 500 Index.
However, on Nov. 26, Workday announced fiscal 2025 third quarter financial results, and its shares dropped more than 6% in the following trading session. While its third-quarter results were strong, Workday provided a weaker-than-anticipated outlook for subscription revenue, which worried the investors.
Nevertheless, analysts' consensus rating on Workday stock is strongly optimistic, with a "Strong Buy" rating overall. Out of 34 analysts covering the stock, opinions include 24 "Strong Buys," two “Moderate Buys,” and eight "Holds."
The average analyst price target for WDAY is $292.39, suggesting a potential upside of 8.1% from current levels.
