Incorporated in 2005 and headquartered in Pleasanton, California, Workday, Inc. (WDAY) is a leading provider of enterprise cloud applications for finance and human resources, with a market cap of $67.9 billion. The company specializes in delivering innovative, AI-driven solutions that help organizations streamline operations, enhance workforce management, and drive business growth across various industries.
Shares of the Finance and HR software company have underperformed the broader market over the past 52 weeks. WDAY has declined 11.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 17.5%. However, on a YTD basis, the stock is up 5.1%, compared to SPX’s 1.3% gains.
Zooming in further, WDAY has also lagged behind the iShares Expanded Tech-Software Sector ETF’s (IGV) 15.7% return over the past 52 weeks. However, the stock outperformed the ETF’s 1.2% decline on a YTD basis.
Workday shares fell 2.5% after its Q4 earnings release on Feb. 25. The company reported a 15% year-over-year revenue increase to $2.21 billion, beating estimates by 1.3%. Adjusted EPS came in at $1.92, surpassing forecasts by 8.1%, while adjusted operating income of $584 million exceeded expectations by 6.7%, with a 26.4% margin. Operating margin remained stable at 3.4%, and free cash flow margin surged to 46.4% from 16.6% in the previous quarter. Billings rose 16.4% year-over-year to $3.25 billion, highlighting strong demand for Workday’s finance and HR software solutions.
For the fiscal year ending in January 2026, analysts expect WDAY’s EPS to grow nearly 107.7% year over year to $3.51. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing on other two occasions.
WDAY stock has a consensus “Moderate Buy” rating, a downgrade from the “Strong Buy” rating one month back. Among the 35 analysts in coverage, 23 suggest a “Strong Buy,” two give a “Moderate Buy,” and 10 analysts recommend a “Hold.”
On Feb. 26, Stifel raised Workday’s price target to $310 from $270 while maintaining a “Hold” rating.
WDAY’s mean price target of $294.36 represents a premium of 8.6% to current price levels. The street-high target of $350 indicates a potential upside of 29.1%.
