Latest news with #WDAY
Yahoo
21 hours ago
- Business
- Yahoo
What To Expect From Workday's (WDAY) Q2 Earnings
Enterprise software company Workday (NASDAQ:WDAY) will be reporting results this Thursday after market hours. Here's what investors should know. Workday beat analysts' revenue expectations by 1% last quarter, reporting revenues of $2.24 billion, up 12.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts' EBITDA estimates but a significant miss of analysts' billings estimates. Is Workday a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Workday's revenue to grow 12.3% year on year to $2.34 billion, slowing from the 16.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.11 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Workday has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 0.9% on average. Looking at Workday's peers in the finance and hr software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Marqeta delivered year-on-year revenue growth of 20.1%, beating analysts' expectations by 6.9%, and Workiva reported revenues up 21.2%, topping estimates by 3%. Marqeta traded up 19.9% following the results while Workiva was also up 32.2%. Read our full analysis of Marqeta's results here and Workiva's results here. Debates around the economy's health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the finance and hr software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.6% on average over the last month. Workday is down 1.5% during the same time and is heading into earnings with an average analyst price target of $293.69 (compared to the current share price of $230.17). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Is It Worth Investing in Workday (WDAY) Based on Wall Street's Bullish Views?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Workday (WDAY) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Workday currently has an average brokerage recommendation (ABR) of 1.71, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 38 brokerage firms. An ABR of 1.71 approximates between Strong Buy and Buy. Of the 38 recommendations that derive the current ABR, 24 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 63.2% and 7.9% of all recommendations. Brokerage Recommendation Trends for WDAY Check price target & stock forecast for Workday here>>> While the ABR calls for buying Workday, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. Zacks Rank Should Not Be Confused With ABR In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Is WDAY Worth Investing In? In terms of earnings estimate revisions for Workday, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $8.7. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Workday. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Workday. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Workday, Inc. (WDAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Workday Set to Report Q2 Results: Will Revenue Growth Boost Earnings?
Workday, Inc. WDAY is set to release second-quarter fiscal 2026 results on Aug. 21, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 9.75%, while in the last reported quarter, it delivered an earnings surprise of 12.06%.Based in Pleasanton, CA, WDAY is expected to have recorded higher revenues on the back of solid demand for its human capital management and financial management solutions across different end markets. A strong focus on AI integration across the portfolio is a positive. Factors at Play During the quarter, Workday launched a powerful expansion of its AI-driven capabilities with a new wave of Illuminate Agents, designed to significantly enhance productivity across Human Resource Management and finance functions. Built on the company's industry-leading foundation of responsible AI, these purpose-built agents aim to enhance productivity and enable smarter, faster decision-making through a contextual understanding of business company also rolled out a new unified AI developer toolset. The toolset is designed to empower developers to easily customize, configure and connect AI apps and agents on the Workday platform. The solution also includes AI Developer Copilot, a conversational AI companion that helps developers code faster. Such initiatives are expected to have boosted Workday's commercial the quarter, Seattle University has opted to deploy Workday HCM, Financial Management and Workday Student solutions in its operations. Its aim is to unify HR, finance, and student information systems into the Workday cloud platform and streamline everyday tasks for the entire campus community. This is likely to have a favorable impact on third-quarter estimate for Subscription Services revenues is pegged at $2.16 billion, suggesting 13.5% year-over-year growth. Our estimate for Professional Services revenues is pegged at $180 the July quarter, the Zacks Consensus Estimate for revenues is pegged at $2.34 billion, suggesting an increase from the year-ago quarter's reported figure of $2.09 billion. The consensus estimate for adjusted earnings per share is pegged at $2.09, indicating an increase from $1.75 reported in the prior year. Earnings Whispers for Workday Stock Our proven model does not conclusively predict an earnings beat for Workday for the fiscal second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.99. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Workday, Inc. Price and EPS Surprise Workday, Inc. price-eps-surprise | Workday, Inc. Quote Zacks Rank: Workday currently carries a Zacks Rank #3. Stocks to Consider Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:Electromed, Inc. ELMD is set to release quarterly numbers on Aug. 26. It has an Earnings ESP of +2.33% and carries a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks Gap GAP is scheduled to report quarterly numbers on Aug. 28. It has an Earnings ESP of +1.52% and currently carries a Zacks Rank of WMT is set to release quarterly numbers on Aug. 21. It currently has an Earnings ESP of +1.26% and a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report Electromed, Inc. (ELMD) : Free Stock Analysis Report The Gap, Inc. (GAP) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
a day ago
- Business
- Forbes
Buy Workday Stock Ahead of Its Earnings?
Workday (NASDAQ:WDAY), a cloud-based software vendor, is set to report its earnings on Thursday, August 21, 2025. Over the past five years, Workday's stock posted a positive one-day return after earnings 55% of the time. Those positive moves had a median gain of 9.1% and a maximum gain of 17.2%. For event-driven traders, recognizing these patterns may offer an edge, though the actual reaction will ultimately depend on how results stack up against consensus and market expectations. Two primary approaches to use this historical context are: Currently, consensus calls for earnings per share of $2.11 on revenue of $2.34 billion for the upcoming quarter, versus $1.75 on $2.08 billion in the same quarter last year. From a fundamentals standpoint, Workday's market capitalization stands at $62 billion. Over the trailing twelve months, the company generated $8.7 billion in revenue, produced an operating profit of $640 million, and reported net income of $487 million. If you're seeking upside with less volatility than a single stock, the Trefis High Quality portfolio is an alternative—having outperformed the S&P 500 with returns exceeding 91% since inception. Also see – Buy IBM Stock At $240? See earnings reaction history of all stocks Workday's Historical Odds Of Positive Post-Earnings Return Some observations on one-day (1D) post-earnings returns: Additional details for 5-Day (5D) and 21-Day (21D) returns after earnings, along with summary statistics, appear in the table below. Correlation Between 1D, 5D, and 21D Historical Returns A relatively less risky tactic (though not useful if correlation is weak) is to study the relationship between short- and medium-term returns after earnings, identify the pair with the highest correlation, and trade accordingly. For instance, if 1D and 5D show the strongest link, a trader could position 'long' for the next 5 days following a positive 1D move. Below is correlation data using both a 5-year window and a more recent 3-year window. (Here, 1D_5D denotes the correlation between 1D post-earnings returns and subsequent 5D returns.) Is There Any Correlation With Peer Earnings? Peer results can sometimes influence Workday's post-earnings reaction, with pricing often starting even before Workday reports. Below is historical data comparing Workday's post-earnings one-day (1D) moves with the one-day post-earnings moves of peers that reported just before Workday. Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), delivering strong returns for investors. If you want upside with a smoother ride than a single stock like Workday, consider the High Quality portfolio, which has outperformed the S&P and has clocked >91% returns since inception.
Business Insider
2 days ago
- Business
- Business Insider
Workday (WDAY) Gets Hit with a Data Breach
Workday (WDAY), a major player in human resources technology, confirmed that it experienced a data breach involving one of its third-party customer relationship platforms. In a recent blog post, the company revealed that hackers accessed personal data—mainly names, phone numbers, and email addresses—that were stored in the affected system. While the exact amount of information stolen hasn't been disclosed, the breach did not appear to impact the core HR systems used by customers to manage sensitive employee data. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Although Workday stated there was no evidence that its customer environments were accessed, it didn't completely rule out the possibility. Nevertheless, the company warned that the stolen information could be used for social engineering scams, where attackers trick individuals into handing over even more sensitive data. The breach is particularly concerning due to Workday's huge customer base, which includes over 11,000 businesses and more than 70 million users. The incident was first reported on August 6, according to Bleeping Computer. Interestingly, Workday didn't name the third-party platform that was compromised, but the incident follows a string of similar attacks on Salesforce-hosted (CRM) databases. Recently, companies like Google (GOOGL) and Cisco (CSCO) have also experienced breaches tied to Salesforce systems. Google believes that the group behind these attacks is ShinyHunters, known for using voice phishing to gain access to corporate cloud data. As of now, Workday has not answered key questions about the breach, including how many people were affected or whose data was taken. Is WDAY Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on WDAY stock based on 22 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average WDAY price target of $290.25 per share implies 26.2% upside potential.
