Zacks Research Issues Positive Estimate for Workday Earnings

Key Points

• Zacks Research has raised its FY2028 earnings estimate for Workday from $5.71 to $5.78 per share, maintaining a "Strong-Buy" rating on the stock.
• Workday's latest quarterly earnings exceeded expectations, reporting $2.21 earnings per share against a consensus estimate of $2.09, while revenue grew 12.6% year-over-year to $2.35 billion.
• Institutional investors hold approximately 89.81% of Workday's stock, with significant recent investments from firms like Nuveen LLC and Norges Bank.

Workday, Inc. (NASDAQ:WDAY - Free Report) - Zacks Research lifted their FY2028 earnings estimates for Workday in a research report issued to clients and investors on Tuesday, October 21st. Zacks Research analyst Team now expects that the software maker will earn $5.78 per share for the year, up from their previous forecast of $5.71. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Workday's current full-year earnings is $2.63 per share.

Other equities research analysts have also issued research reports about the stock. Canaccord Genuity Group dropped their price objective on shares of Workday from $330.00 to $275.00 and set a "buy" rating on the stock in a research note on Friday, August 22nd. Weiss Ratings restated a "hold (c)" rating on shares of Workday in a research report on Wednesday, October 8th. Guggenheim upgraded shares of Workday from a "neutral" rating to a "buy" rating and set a $285.00 target price for the company in a research report on Wednesday, September 17th. Bank of America decreased their target price on shares of Workday from $295.00 to $278.00 and set a "buy" rating for the company in a research report on Tuesday, August 19th. Finally, Evercore ISI upped their target price on shares of Workday from $275.00 to $300.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 17th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $287.83.

Workday Price Performance

WDAY opened at $242.83 on Thursday. The firm has a market cap of $64.84 billion, a price-to-earnings ratio of 112.42, a price-to-earnings-growth ratio of 3.06 and a beta of 1.10. Workday has a fifty-two week low of $205.33 and a fifty-two week high of $294.00. The company's 50-day moving average price is $232.88 and its 200 day moving average price is $237.09. The company has a quick ratio of 2.10, a current ratio of 2.10 and a debt-to-equity ratio of 0.33.

Workday (NASDAQ:WDAY - Get Free Report) last released its quarterly earnings data on Thursday, August 21st. The software maker reported $2.21 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.12. The firm had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.34 billion. Workday had a net margin of 6.51% and a return on equity of 9.74%. Workday's quarterly revenue was up 12.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.75 earnings per share. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS.

Insiders Place Their Bets

In other news, insider Richard Harry Sauer sold 2,320 shares of the stock in a transaction that occurred on Tuesday, October 7th. The shares were sold at an average price of $235.87, for a total value of $547,218.40. Following the completion of the transaction, the insider directly owned 90,077 shares in the company, valued at $21,246,461.99. This trade represents a 2.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Zane Rowe sold 6,000 shares of the firm's stock in a transaction that occurred on Tuesday, October 7th. The stock was sold at an average price of $232.62, for a total transaction of $1,395,720.00. Following the sale, the chief financial officer owned 168,468 shares of the company's stock, valued at $39,189,026.16. The trade was a 3.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 264,933 shares of company stock valued at $61,475,760. 19.31% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Workday

Several hedge funds have recently made changes to their positions in WDAY. Nuveen LLC purchased a new stake in shares of Workday in the 1st quarter valued at approximately $456,341,000. Norges Bank purchased a new stake in shares of Workday in the 2nd quarter valued at approximately $442,702,000. T. Rowe Price Investment Management Inc. lifted its position in shares of Workday by 47.5% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 3,764,598 shares of the software maker's stock valued at $879,147,000 after acquiring an additional 1,211,659 shares in the last quarter. Hotchkis & Wiley Capital Management LLC lifted its position in shares of Workday by 35.6% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 3,479,105 shares of the software maker's stock valued at $812,475,000 after acquiring an additional 913,613 shares in the last quarter. Finally, Generation Investment Management LLP lifted its position in shares of Workday by 36.6% in the 1st quarter. Generation Investment Management LLP now owns 2,903,767 shares of the software maker's stock valued at $678,117,000 after acquiring an additional 778,301 shares in the last quarter. Hedge funds and other institutional investors own 89.81% of the company's stock.

About Workday

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; 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.

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