Workday, Inc. (WDAY) is listed on NASDAQ and operates in the Software - Application industry (Technology sector).
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company's applications help its customers to plan, execute, analyze, and extend to other applications and environments, and to manage their business and operations. It offers a suite of financial management applications, which enable chief financial officers to maintain accounting information in the general ledger; manage financial processes; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. The company also provides cloud spend management solutions that helps organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; Human Capital Management (HCM) solution, a suite of human capital management applications that allows organizations to manage the entire employee lifecycle from recruitment to retirement, and enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences; Workday applications for planning; and applications for analytics and reporting, including augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. It serves professional...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 45 |
| Hold | 34 |
| Sell | 2 |
| Strong Sell | 0 |
Workday, Inc., headquartered in Pleasanton, California, provides enterprise cloud applications both in the United States and internationally. The company offers financial management solutions that assist in maintaining accounting information, managing financial processes, and enhancing financial consolidation. Its cloud spend management solutions streamline supplier selection, contract management, and sourcing events. Workday's Human Capital Management (HCM) suite supports the entire employee lifecycle, from recruitment to retirement, facilitating HR functions such as hiring, onboarding, and employee development. Additionally, Workday provides planning, analytics, and reporting applications, incorporating machine learning and augmented analytics. The company serves various sectors, including professional services, financial services, healthcare, education, government, technology, media, retail, and hospitality. Founded in 2005, Workday was formerly known as North Tahoe Power Tools, Inc.
Over the past three fiscal years, the company has demonstrated robust revenue growth, with a consistent increase at a 14.7% CAGR, rising from $7.26 billion in 2024 to $9.55 billion in 2026. This revenue expansion was accompanied by a significant improvement in operating margins, which increased by 8.2 percentage points from 2.5% to 10.7%, indicating strong operating leverage. However, net margins showed volatility, decreasing from 19.0% in 2024 to 7.3% in 2026, which suggests potential challenges in managing net profitability despite operating gains. Cash flow generation has been a highlight, with operating cash flow and free cash flow both consistently increasing, the latter growing at a 20.5% CAGR to reach $2.78 billion in 2026, reflecting a healthy FCF margin of 29.1%. The company's cash conversion ratio of 4.24 indicates that earnings are well-supported by cash flows. Despite the increase in net debt from $1.28 billion to $2.32 billion, the company's interest coverage ratio improved to 8.85x, suggesting manageable leverage. Additionally, the company has maintained capital efficiency, evidenced by a decreasing capex intensity, now at 1.7%, and an improving asset turnover ratio of 0.53. The slight reduction in share count by 0.7% through buybacks has further enhanced per-share value, as seen in the consistent increase in revenue and FCF per share.
Recent developments for Workday, Inc. (WDAY) highlight significant insider trading activity and analyst sentiment. On April 14, major shareholder David Duffield sold 107,500 shares at an average price of $112, totaling approximately $12.08 million. Following this transaction, Duffield retains 105,049 shares valued at around $11.8 million. In terms of analyst ratings, Workday received a rating upgrade on April 15, indicating a positive outlook for long-term investors. Additionally, Wall Street analysts expressed optimism about Workday's prospects on April 16. On the strategic front, Workday has integrated with Exclaimer to streamline email signature management, a move aimed at reducing manual effort and enhancing digital communication efficiency. This integration is particularly relevant as Workday supports over 75 million users globally. Institutional trading activity also saw changes, with First Eagle Investment Management LLC acquiring a substantial stake in Workday during the third quarter, valued at approximately $556.25 million. These developments suggest a mix of strategic growth initiatives and active trading by insiders and institutions, reflecting a dynamic period for Workday.