WDAY
TechnologyWorkday, Inc.
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XBRL · SEC EDGAR2010–2026(16yr)| Metric | FY 2010 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $68.1M | $134.4M | $273.7M | $468.9M | $787.9M | $1.2B | $1.6B | $2.1B | $2.8B | $3.6B | $4.3B | $5.1B | $6.2B | $7.3B | $8.4B | $9.6B | +13.1% |
| Gross Profit | $28.2M | $69.1M | $157.1M | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Gross Margin | 41.4% | 51.4% | 57.4% | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Operating Income | -$56.1M | -$78.4M | -$117.9M | -$153.3M | -$215.7M | -$264.7M | -$376.7M | -$303.2M | -$463.3M | -$502.2M | -$248.6M | -$116.5M | -$222.2M | $183.0M | $415.0M | $721.0M | +73.7% |
| Operating Margin | -82.4% | -58.4% | -43.1% | -32.7% | -27.4% | -22.8% | -24.0% | -14.1% | -16.4% | -13.8% | -5.8% | -2.3% | -3.6% | 2.5% | 4.9% | 7.5% | +2.6pp |
| Net Income | -$56.2M | -$80.0M | -$119.8M | -$172.5M | -$248.0M | -$289.9M | -$408.3M | -$321.2M | -$418.3M | -$480.7M | -$282.4M | $29.4M | -$366.7M | $1.4B | $526.0M | $693.0M | +31.7% |
| Net Margin | -82.6% | -59.5% | -43.8% | -36.8% | -31.5% | -24.9% | -26.0% | -15.0% | -14.8% | -13.3% | -6.5% | 0.6% | -5.9% | 19.0% | 6.2% | 7.3% | +1.0pp |
| Free Cash Flow | -$19.0M | -$18.8M | -$4.7M | -$14.5M | -$1.6M | $125.0M | $227.8M | $324.2M | $404.2M | $620.9M | $1.0B | $1.4B | $1.3B | $1.9B | $2.2B | $2.8B | +26.7% |
| FCF Margin | -27.9% | -14.0% | -1.7% | -3.1% | -0.2% | 10.8% | 14.5% | 15.1% | 14.3% | 17.1% | 23.5% | 27.0% | 20.8% | 26.4% | 26.0% | 29.1% | +3.1pp |
| EPS (Diluted) | — | $-2.22 | — | — | — | — | — | — | — | $-2.12 | $-1.19 | $0.12 | $-1.44 | $5.21 | $1.95 | $2.59 | +32.8% |
1. THE BIG PICTURE
Workday is attempting to transition from a record-keeping cloud service to an AI-driven "agentic" platform, using its unified data architecture as a moat against legacy providers like Oracle and SAP. By embedding AI directly into its core applications rather than treating it as an add-on, Workday, Inc. seeks to move beyond simple data management to the autonomous execution of financial and HR tasks.
2. WHERE THE RISKS HIT HARDEST
The "Unified Platform" strength is directly threatened by "Security and Data Privacy" risks because a single compromise of this integrated system exposes both payroll and financial data simultaneously, potentially leading to the suspension of critical authorizations like FedRAMP (10-K Item 1). Furthermore, the "Innovation Model" of weekly product updates is vulnerable to "Infrastructure and Service Reliability" risks; any failure in third-party data centers could trigger service credits and contract terminations, directly eroding the 92% of total revenue derived from subscriptions (10-K Item 1, 8-K).
3. WHAT THE NUMBERS SAY TOGETHER
While Workday delivers double-digit revenue growth (+13.1% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter), its bottom-line efficiency lags behind its peers. Its 7.7% operating margin is the lowest in its peer group—trailing Oracle’s 29.7% and Salesforce's 21.0%—reflecting heavy investment in AI acquisitions like Paradox and Sana, alongside a $303 million restructuring charge in fiscal 2026 (XBRL, 8-K). However, Workday, Inc. converts revenue into cash effectively, with a 20.9% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin that significantly outperforms Oracle’s -21.8% (XBRL). Short interest at 6.1% indicates some market skepticism, yet Workday is aggressively supporting its own valuation with a 4.1% buyback yield, the second-highest among its peers (Peer Benchmarking).
4. IS IT WORTH IT AT THIS PRICE?
At 11.5x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Workday trades at a significant discount to the peer median of 18.1x, making it the cheapest stock in its cohort (Peer Benchmarking). At this multiple, the market is pricing in approximately 2.2% long-term growth (CAPM Analysis). This expectation appears overly conservative given Workday's actual 13.1% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth and its fiscal 2027 guidance of 12% to 13% subscription growth (8-K). While Workday, Inc.'s thin net margin of 8.1% justifies some discount compared to Intuit (21.9%), the combination of high FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders generation and aggressive share retirement suggests the current price does not fully reflect Workday, Inc.'s growth trajectory.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if subscription revenue growth falls below the 12% floor guided for fiscal 2027, indicating that new AI agents are failing to drive customer upsells (8-K).
- Constructive if operating margins expand toward the 30% non-GAAPGAAPGenerally Accepted Accounting Principles — the standard U.S. accounting rules all public companies must follow target, proving that the recent restructuring and AI integrations are driving meaningful operating leverage (8-K).
- Cautious if a major security incident leads to the loss of a high-profile Fortune 500 client, signaling a failure in the core "Customer Success" differentiator (10-K Item 1).
6. BOTTOM LINE
Structural Advantage: High switching costs and deep data gravity created by a unified platform that integrates human capital and financial management for the world's largest organizations. Bottom Line: Workday is an attractively valued growth play whose cash-flow strength and aggressive buybacks are currently overshadowed by temporary restructuring costs and thin GAAPGAAPGenerally Accepted Accounting Principles — the standard U.S. accounting rules all public companies must follow margins.
1. Top 5 Material Risks
- Security and Data Privacy: Any compromise of Workday, Inc.’s IT systems or unauthorized access to sensitive customer data—including financial, payroll, and health information—could result in regulatory enforcement, litigation, and loss of customer confidence, potentially leading to the suspension of authorizations like FedRAMP.
- Infrastructure and Service Reliability: Workday, Inc. relies on third-party data centers and internet availability; any service outages, performance problems, or failures to scale infrastructure could trigger contractual liabilities, including the issuance of service credits or refunds.
- Intense Market Competition: Workday, Inc. faces competition from larger, well-established vendors like Oracle and SAP, as well as newer AI-native solutions; failure to differentiate its products or maintain pricing power could lead to reduced sales and lower margins.
- Customer Renewal and Sales Cycles: Because Workday, Inc. recognizes subscription revenue over the term of a contract (typically three years or longer), a decline in new or renewed contracts—often driven by long sales cycles or macroeconomic downturns—negatively impacts future revenue results.
- Integration of Acquisitions: Workday, Inc. frequently acquires companies and technologies; failure to successfully integrate these assets, retain key personnel, or realize expected financial benefits can lead to impairment charges on goodwill and intangible assets.
2. Company-Specific Risks
- Co-Founder Voting Control: As of January 31, 2026, Co-Founders David Duffield and Aneel Bhusri hold a substantial majority of the voting power through Class B common stock (10 votes per share), precluding non-affiliates from influencing corporate matters.
- Flex Credits Pricing Model: Workday, Inc. has limited experience with its new "Flex Credits" subscription-based pricing model for AI solutions, creating uncertainty regarding optimal pricing and potential customer resistance.
- Internal Financial Reporting: Because Workday, Inc. uses its own financial management application, any technical problems or compliance issues within the software could be negatively perceived by prospective customers, directly impacting demand for its products.
- AI-Related Litigation: Workday, Inc. is currently defending against a lawsuit alleging that its AI-related products enable discrimination; while Workday, Inc. believes the claims lack merit, such proceedings are expensive and disruptive.
3. Regulatory/Legal Risks
- Data Privacy Laws: Workday, Inc. must comply with fragmented global regulations, including the GDPR (with potential penalties up to 4% of worldwide revenue), the CCPA/CPRA, and the EU AI Act, which impose significant compliance costs and operational restrictions.
- Government Procurement: Contracts with government entities are subject to strict regulations; failure to maintain FedRAMP authorization or violations of procurement rules could lead to contract termination, suspension of payments, or debarment from future government business.
- Data Security Program Rule: A U.S. Department of Justice rule effective April 8, 2025, restricts transactions involving bulk U.S. sensitive personal data with "countries of concern," which may impact Workday, Inc.’s global business operations and data transfer capabilities.
- Exclusive Forum Provisions: Workday, Inc.’s organizational documents mandate that the Court of Chancery of the State of Delaware is the exclusive forum for certain legal actions, which may limit stockholders' ability to choose a favorable judicial forum.
4. Financial Impact Map
Security and Data Privacy → Subscription Services Revenue → Unauthorized access or system compromise may lead to customer terminations, loss of confidence, and potential regulatory fines.
Infrastructure and Service Reliability → Subscription Services Revenue → Service outages or performance failures may require the issuance of service credits or refunds for prepaid and unused subscription services.
Intense Market Competition → Operating Margin → Pricing pressures and the need for increased marketing or sales concessions to compete with legacy vendors and AI-native solutions may reduce profitability.
Customer Renewal and Sales Cycles → Subscription Services Revenue → Long sales cycles and potential customer headcount reductions (which impact subscription pricing) delay the reflection of new sales in reported revenue.
Integration of Acquisitions → Goodwill and Intangible Assets → Failure to realize expected returns on acquired businesses may necessitate impairment charges, negatively impacting operating results.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Mar 2026 | Jan 2026 |
| 8-K | Feb 2026 | — |
| 10-Q | Nov 2025 | Oct 2025 |
| 14A | Apr 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Workday Q4 Operating Cash Flow $1.28B, Up From $1.11B Prior Year
- ▸Q4 operating cash flow $1.28B vs $1.11B year-ago
- ▸Fiscal 2026 operating cash flow $2.94B vs $2.46B in 2025
- ▸Free cash flow $2.8B, up from $2.2B year-ago
- ▸Deferred revenues reached $5.01B
- ▸Enterprise customer base exceeds 11,500 worldwide
Workday FY27 Subscription Revenue Guidance $9.93B-$9.95B; CEO Transition Set for Feb 2026
- ▸FY27 subscription revenue guidance $9.925B–$9.950B
- ▸Q1 FY27 subscription revenue expected at $2.335B
- ▸Co-founder Aneel Bhusri to return as CEO February 6, 2026
- ▸Workforce reduction of 2% in customer-facing roles
- ▸Planned CAD 1B investment in Canada over five years
Workday Q4 Revenue $2.53B Beats Estimates, Non-GAAP EPS $2.47 Tops Consensus
- ▸Q4 revenue $2.53B, up from $2.21B YoY, beating estimates
- ▸Non-GAAP EPS $2.47, beating consensus estimate by $0.17
- ▸Subscription services revenue $2.36B, up from $2.04B YoY
- ▸12-month subscription revenue backlog $8.83B, up 15.8% YoY
- ▸FY26 total revenue $9.55B, up from $8.45B in FY25
Workday Launches Sana AI Agents Globally, Bundled via Flex Credits to Drive Enterprise Adoption
- ▸Sana AI agents now available globally for HR, finance, and enterprise applications
- ▸AI agents bundled via Workday Flex Credits instead of separate licensing
- ▸Integration aims to automate manual finance workflows across third-party systems
- ▸Projected 2028 financials: $12.9B revenue and $1.8B earnings
- ▸Requires 13% annual revenue growth to meet long-term valuation targets
SailPoint shares drop on FY27 revenue forecast missing analyst expectations
- ▸FY27 revenue guidance missed analyst consensus expectations
- ▸Full-year ARR growth reached 28% in 2026
- ▸SaaS ARR grew 38% during the fiscal year
- ▸EPS guidance for 2027 remains in line with estimates
- ▸Stock experienced record intraday decline following outlook release
Workday Secures Fairview Health Services Contract and Partners with MRI Software
- ▸Fairview Health Services selected Workday for HR and finance digital transformation
- ▸New partnership with MRI Software integrates facilities and property management data
- ▸Strategic expansion targets healthcare sector as key growth vertical
- ▸Workday stock down 35.3% YTD, trading 27% below analyst price targets
- ▸Integration with complex hospital systems presents potential execution and timeline risks
Workday shares under pressure following softer subscription revenue guidance and increased planned spending
- ▸Subscription revenue guidance lowered by management
- ▸Planned investment spending increased, weighing on investor sentiment
- ▸New partnerships announced with Insperity and Lyra Health
- ▸Share price declined 12.54% over the past 30 days
- ▸Stock trading at $142.49 with analyst fair value estimates near $253.14
Workday integrates Lyra Health mental wellness services into AI-powered employee platform
- ▸Partnership integrates Lyra Health mental wellness services into Workday Wellness platform
- ▸Platform utilizes AI and APIs to automate employee benefit plan setup
- ▸Workday shares down 41.3% over the past 12 months
- ▸Forward P/E ratio of 13.28 trades below industry average of 28.21
- ▸FY2028 earnings estimates declined 1.1% to $12.32 over last 60 days
Workday cuts FY27 subscription revenue guidance to $9.925B-$9.95B, fair value estimate lowered 20%
- ▸FY27 subscription revenue guidance set at $9.925B–$9.95B, low-teens growth
- ▸Fair value estimate reduced 20% from $231.17 to $184.73
- ▸Co-founder Aneel Bhusri to return as CEO effective February 6, 2026
- ▸Workday to cut 2% of workforce in customer-facing roles
- ▸Repurchased 9.5M shares for total of $2.1B across two programs