Workday (NASDAQ:WDAY) Issues Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Workday (NASDAQ:WDAY) released its quarterly earnings results on Thursday. The software maker reported $2.66 EPS for the quarter, beating analysts’ consensus estimates of $2.49 by $0.17, FiscalAI reports. Workday had a net margin of 7.26% and a return on equity of 13.37%. The company had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.52 billion. During the same quarter last year, the firm posted $2.23 earnings per share. The company’s quarterly revenue was up 13.5% compared to the same quarter last year.

Here are the key takeaways from Workday’s conference call:

• Workday said Q1 was its best first quarter of new ACV growth in five years, with momentum improving after a slower fiscal 2026.
• AI adoption appears to be gaining real traction: agentic AI new ACV grew more than 200% year over year, and Workday is approaching $500 million in ARR from agentic AI solutions.
• Customer engagement with Workday’s AI products is broadening, with 20 organic agents now in GA or EA and more than 4,000 customers using at least one organically developed agent.
• The company reiterated full-year FY2027 subscription revenue guidance of $9.925 billion to $9.950 billion and raised non-GAAP operating margin guidance to 30.5%, signaling confidence in both growth and profitability.
• Management emphasized that AI is being positioned as a platform expansion opportunity, with products like Sana for Workday and Deployment Agent intended to reduce implementation time, improve TCO, and expand use cases into adjacent areas like ITSM and travel.

Workday Stock Performance

Shares of NASDAQ:WDAY opened at $121.85 on Friday. The stock has a market capitalization of $31.32 billion, a P/E ratio of 47.23, a P/E/G ratio of 1.23 and a beta of 1.04. Workday has a 1-year low of $110.36 and a 1-year high of $273.80. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. The business has a 50-day moving average price of $126.10 and a two-hundred day moving average price of $169.57.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Cantor Fitzgerald dropped their price target on shares of Workday from $200.00 to $160.00 and set an “overweight” rating on the stock in a research report on Wednesday. Rosenblatt Securities decreased their price target on shares of Workday from $180.00 to $150.00 and set a “buy” rating on the stock in a research note on Wednesday, February 25th. Citigroup reiterated a “market perform” rating on shares of Workday in a research note on Friday. DA Davidson reduced their target price on shares of Workday from $250.00 to $125.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 25th. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $216.00 target price on shares of Workday in a research note on Friday. Twenty research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $193.78.

Key Stories Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday delivered a clear Q1 beat on earnings and revenue, which is helping drive the stock higher. Workday shares jump as AI demand eases investor concerns
• Positive Sentiment: The company highlighted strong AI momentum, including new agentic AI offerings such as Sana for ITSM and a travel agent, suggesting a path to better monetization and customer adoption. Workday Announces Sana for IT Service Management and New Travel Agent
• Positive Sentiment: Management also raised its margin outlook, and analysts such as William Blair reiterated bullish views, reinforcing confidence that the business can expand profits while growing. Workday: Buy Rating Reaffirmed on Strong Q1 Beat, Rapid AI Monetization, Margin Upgrade and Attractive Valuation
• Neutral Sentiment: Aneel Bhusri returned as CEO during the quarter, a leadership change that may help execution, but investors will still want to see sustained progress in coming quarters.
• Negative Sentiment: Some pre-earnings commentary had flagged execution risk, slower growth trends, and concerns about AI rivals, so the rally may depend on Workday proving this quarter is the start of a stronger trend rather than a one-time beat. Workday execution risk flagged by Jefferies ahead of quarterly earnings

Insider Activity

In other Workday news, insider Robert Enslin sold 5,373 shares of the business’s stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $129.41, for a total transaction of $695,319.93. Following the completion of the sale, the insider directly owned 165,414 shares of the company’s stock, valued at approximately $21,406,225.74. The trade was a 3.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Mark S. Garfield sold 1,585 shares of the business’s stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $113.05, for a total value of $179,184.25. Following the sale, the chief accounting officer directly owned 31,467 shares of the company’s stock, valued at $3,557,344.35. This represents a 4.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 989,814 shares of company stock worth $131,576,291. Corporate insiders own 18.64% of the company’s stock.

Institutional Trading of Workday

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Brighton Jones LLC grew its position in shares of Workday by 230.2% in the 4th quarter. Brighton Jones LLC now owns 4,005 shares of the software maker’s stock valued at $1,033,000 after purchasing an additional 2,792 shares during the period. Sivia Capital Partners LLC acquired a new position in Workday during the 2nd quarter worth approximately $281,000. Keel Point LLC acquired a new position in Workday during the 4th quarter worth approximately $209,000. MUFG Securities EMEA plc acquired a new stake in shares of Workday in the 2nd quarter valued at approximately $154,000. Finally, Summit Securities Group LLC boosted its holdings in shares of Workday by 837.7% in the 4th quarter. Summit Securities Group LLC now owns 647 shares of the software maker’s stock valued at $139,000 after buying an additional 578 shares during the last quarter. 89.81% of the stock is owned by institutional investors.

Workday Company Profile

Workday, Inc (NASDAQ: WDAY) is a provider of cloud-based enterprise applications focused on human capital management (HCM) and financial management. Founded in 2005 by Dave Duffield and Aneel Bhusri following their tenure at PeopleSoft, the company develops software-as-a-service solutions that help organizations manage workforce and financial processes in a unified, cloud-native environment. Workday’s platform emphasizes continuous updates, data security, and a configurable architecture aimed at large and mid-sized enterprises.

The company’s product portfolio centers on Workday Human Capital Management and Workday Financial Management, with additional offerings for payroll, talent management, workforce planning and analytics.