Workday (NASDAQ:WDAY) Releases Earnings Results, Misses Estimates By $1.27 EPS

Workday (NASDAQ:WDAY) issued its quarterly earnings results on Tuesday. The software maker reported $0.48 earnings per share for the quarter, missing the consensus estimate of $1.75 by ($1.27), Zacks reports. Workday had a return on equity of 6.13% and a net margin of 19.86%. Workday updated its FY 2026 guidance to EPS and its Q1 2026 guidance to EPS.

Workday Price Performance

Shares of WDAY stock opened at $255.22 on Wednesday. The firm has a market capitalization of $67.89 billion, a price-to-earnings ratio of 42.33, a PEG ratio of 3.55 and a beta of 1.35. The company has a debt-to-equity ratio of 0.35, a quick ratio of 2.05 and a current ratio of 2.05. The stock’s 50-day simple moving average is $259.97 and its 200-day simple moving average is $254.12. Workday has a fifty-two week low of $199.81 and a fifty-two week high of $311.28.

Analyst Ratings Changes

Several research firms have recently weighed in on WDAY. Morgan Stanley downgraded Workday from an “overweight” rating to an “equal weight” rating and decreased their target price for the stock from $330.00 to $275.00 in a research report on Wednesday, February 19th. Royal Bank of Canada lifted their price objective on shares of Workday from $300.00 to $320.00 and gave the company an “outperform” rating in a report on Wednesday, December 18th. Mizuho upped their target price on shares of Workday from $280.00 to $320.00 and gave the stock an “outperform” rating in a research note on Friday, December 13th. Bank of America decreased their price target on shares of Workday from $310.00 to $285.00 and set a “buy” rating for the company in a research note on Wednesday, November 27th. Finally, Oppenheimer boosted their price target on Workday from $300.00 to $320.00 and gave the company an “outperform” rating in a report on Wednesday. Ten equities research analysts have rated the stock with a hold rating, twenty have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $292.54.

Insider Buying and Selling

In related news, CEO Carl M. Eschenbach sold 6,250 shares of the firm’s stock in a transaction on Monday, January 6th. The stock was sold at an average price of $253.86, for a total value of $1,586,625.00. Following the completion of the transaction, the chief executive officer now owns 13,972 shares in the company, valued at $3,546,931.92. This trade represents a 30.91 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, major shareholder David A. Duffield sold 56,000 shares of Workday stock in a transaction dated Monday, January 13th. The stock was sold at an average price of $246.42, for a total value of $13,799,520.00. Following the sale, the insider now directly owns 60,000 shares of the company’s stock, valued at approximately $14,785,200. This represents a 48.28 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 438,819 shares of company stock worth $113,142,592 in the last three months. Corporate insiders own 20.00% 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.