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WDAY

S&P 500
Neutral · 48/100

Workday, Inc.

Information Technology
Application Software
Earnings Aug 27 · after the close

$179.05

5.2%

Updated Aug 7, 11:30 AM ET

Report Card

WDAY at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Neutral · 48/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▼ Down 50.6% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$31.31B

P/E

52.21x

Forward P/E (est.)

37.3x

ROE

10.4%

Revenue Growth

13.3%

EPS Growth

77.0%

Profit Margin

8.6%

FCF Yield

0.6%

Debt / Equity

0.38x

ROIC

6.0%

Interest Coverage

6.32x

Current Ratio

1.01x

Dividend Yield

Implied Growth (rev. DCF)

0.1%

Rating Score

48/100

Business Overview
Research

Workday, Inc. (WDAY) is a large-cap company in the Application Software industry, part of the Information Technology sector of the S&P 500, with a market value around $31.31B.

In its latest reported year it generated about $9.55B in revenue and $693.00M in net profit.

Our model rates WDAY Neutral (48/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Economic Moat

Evidence of durable competitive advantage in the filed financials (10 years of history).

No moat evidenceMoat evidence score: 41/100

The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.

Operating margin level0/100

5.0% average over the last 3 years

Operating margin stability0/100

±9.5 pts around -6.3% across 10 years

Revenue durability100/100

grew in 9 of the last 9 year-over-year periods

Free-cash-flow consistency100/100

positive in 10 of 10 years

Return on invested capital5/100

6.0% latest fiscal year

A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WDAY's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WDAY trades near $179.05, above its 50-day average ($127.78) and 200-day average ($174.84). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 55 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. WDAY's is $6.60 (~3.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month WDAY found buyers near $111.50 (support) and sellers near $153.48 (resistance); its 52-week range is $110.36–$249.85. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

16.8%

3/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $1.57B in 2017 to $9.55B in 2026, a 22.2% compound annual growth rate. The most recent year grew a steady 13.3% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research
1/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

75.8%

Operating Margin

7.5%

Net Margin

7.3%

ROE

10.4%

Workday, Inc. keeps about 8.6% of each sales dollar as net profit, with a 75.8% gross margin and 7.5% operating margin. Return on equity is 10.4% and return on invested capital about 6.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$2.99B

Net Debt

$2.43B

Net Debt / EBITDA

3.37x

Debt / Equity

0.38x

Leverage: debt-to-equity is 0.4x, and operating profit covers interest about 6.3x, with a current ratio of 1.0x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $2.99B of total debt against $559.00M of cash.

Cash Flow Analysis
Research
2/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$2.94B

Free Cash Flow

$2.78B

FCF Margin

29.1%

In the latest year Workday, Inc. produced about $2.94B of operating cash flow and $2.78B of free cash flow after capital spending. That is a free-cash-flow yield of about 0.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
4/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

52.21x

P/S

3.28x

P/B

8.25x

EV / EBITDA

WDAY trades at 52.2x trailing earnings (about 37.3x on estimated forward earnings), 3.3x sales, and 8.3x book value. Reverse-engineering today's price implies the market expects roughly 0.1% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$364.31

Current price

$179.05

+103% · Below fair-value estimate

Starting FCF (latest 10-K)

$2.78B

Growth, years 1–5

13.3%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$32.16B
PV of terminal value$47.99B
Estimated equity value$80.15B
Shares outstanding220M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where WDAY sits versus its Information Technology sector peers in the S&P 500.

TTM P/E
52.2xFair
Forward P/E
37.3xFair
P/S ratio
3.3xCheap
Revenue growth
13.3%Average
EPS growth
77.0%Strong
Gross margin
75.8%Strong
Net margin
8.6%Average
ROE
10.4%Average

Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How WDAY stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (230 S&P 500 companies), WDAY ranks #72 of 230 by our overall rating. It trades at a premium versus the sector on earnings (52.2x P/E vs. 38.9x median) with a lower return on equity (10.4% vs. 17.5%) and slower revenue growth (13.3% vs. 17.7%).

P/E vs sector

52.2x

median 38.9x

ROE vs sector

10.4%

median 17.5%

Growth vs sector

13.3%

median 17.7%

Sector rank

#72

of 230 by rating

CompanyP/ERev Gr.Rating
WDAYThis stock52.2x13.3%Neutral· 48
FICO31.9x22.6%Favorable· 70
ADSK36.5x18.3%Favorable· 70
PTC13.6x27.8%Strong· 89
TYL41.9x8.7%Neutral· 45
INTU19.8x15.1%Strong· 77
TRMB23.4x5.7%Favorable· 62
SNPS102x39.5%Weak· 38
Information Technology median38.9x17.7%0/100

Valuation vs. quality map

sector medianFICOADSKPTCTYLINTUTRMBSNPSWDAYP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $179.05 today · expected CAGR 4%15%

Metric20262027202820292030
Revenue$10.79B$12.20B$13.78B$15.57B$17.60B
Net income$755.56M$853.79M$964.78M$1.09B$1.23B
EPS$4.32$4.88$5.52$6.23$7.04
Share price (low)$133.93$151.35$171.02$193.25$218.38
Share price (high)$224.66$253.87$286.87$324.17$366.31
CAGR (low–high)-25% / 25%-8% / 19%-2% / 17%2% / 16%4% / 15%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for WDAY:

  • Revenue is growing 13.3% a year, a sign of real demand.
  • A conservative balance sheet (debt/equity 0.4x) lowers risk.
Bear Case

The case against WDAY:

  • A rich 52.2x earnings multiple prices in a lot of growth.
  • Limited free cash flow at today's price.
Key Risks
Research

Valuation risk — at 52.2x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Workday, Inc. is a large-cap information technology business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 52.2x earnings, which our model scores Neutral (48/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Analyst Ratings

What 49 Wall Street analysts covering WDAY recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.

Buy
consensus · score 3.8 / 5 across 49 analysts
Strong Buy 11Buy 18Hold 18Sell 2Strong Sell 0

Analysts have turned more cautious over the last three months (-3 pts of buy ratings).

Latest SEC Filings

WDAY's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.

WDAY — frequently asked questions

Is WDAY a good stock to buy?

We don't give buy or sell advice. Our model rates Workday, Inc. Neutral (48/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is WDAY's rating on The Stocks School?

Workday, Inc. currently scores 48/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does WDAY's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Workday, Inc.'s SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for WDAY calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this WDAY analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WDAY. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.