Workday, Inc. (WDAY)
Information Technology · Application Software · US stock · S&P 500 component
$209.99
▲ +0.00 (0.00%)
Fair valueUndervalued
$264 +25.8% to fair value
$132fair band $225–$320$396
Day's range
$206.52 – $211.43
52-week range
$110.36 – $247.10
About Workday, Inc.
Workday provides cloud-based software for managing a company's people and money, covering human resources, payroll, financial management and planning. Customers, which include large enterprises and public sector bodies, pay recurring subscription fees to use the applications, and the company adds revenue from implementation and consulting work. It has also been adding artificial intelligence features to its products, and renewals by existing customers are central to its financial model.
Revenue over the last twelve months came to $10.2 billion, and sales grew by 15.4% a year on average across the past three years. Operating margin is 10.7% and return on invested capital is 14%. Net debt to EBITDA is 0.3 times. The company does not pay a dividend. The X-Ray Score is 58 out of 100. Taken together, these numbers give a factual snapshot of the business.
Price chart
52-wk range $110.36 – $247.10Volume 1,955,673Daily, split-adjusted
Vitals
Market cap$51.7B
52-week range$110.36 – $247.10
Volume (last day)1,955,673
P/E (TTM)43.5
EBIT / EV yield2.1%
Free-cash-flow yield5.5%
Dividend yieldNo dividend
Revenue (TTM)$10.2B
Net income (TTM)$1.3B
Operating margin10.7%
Return on capital14.3%
Debt incl. leases$3.8B
Cash & securities$3.4B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$264middle half of models $227 – $282
Undervalued
+25.8% to fair value
Average of the 10 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $210
Undervalued < $225Fair $225 – $320Overvalued > $320
P/E multiple
$243
P/B multiple
$213
P/S multiple
$283
EV/EBITDA multiple
$287
EV/EBIT multiple
$415
EV/revenue multiple
$262
10-year DCF, EBITDA exit
$224
5-year DCF, EBITDA exit
$279
10-year DCF, revenue exit
$201
5-year DCF, revenue exit
$235
10-year DCF, growth exit · not used
$48
5-year DCF, growth exit · not used
$49
Earnings power value · not used
$40
Growth the price implies
37.4%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 4.96%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, but the price is low
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
69/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield2.1%
Free-cash-flow yield5.5%
Fair value vs price1.3×
Growth
Fair
67/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)15.4%
Growth consistency100%
Profitability
Weak
44/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital14.3%
Operating margin10.7%
Financial health
Weak
50/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA0.3×
Interest cover9.8×
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+12.6%
Apr '25
+12.6%
Jul '25
+12.6%
Oct '25
+14.5%
Jan '26
+13.5%
Apr '26
+12.8%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.6B, diluted EPS $2.57.
Compare with peers
ADBE Adobe Inc.77 INTU Intuit Inc.71 FICO Fair Isaac Corp71 ADSK Autodesk, Inc.67Other Application Software companies by X-Ray Score.
SWOT analysis: Workday, Inc.
Strengthsinside the company
- Revenue has grown 15.4% a year over three years (median 12.3% for industry peers).
- Free cash flow equals 5.5% of the market value, which funds dividends, buybacks or debt paydown.
- Net debt is only 0.3x EBITDA.
- Passes 8 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- Operating margin of 10.7% is thin against 27.4% for industry peers.
- Altman Z-score of 1.0 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- The price is 26% below our fair value estimate, with the gap larger than the margin we allow for error.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- Trades at 41.3x earnings, 50% above the 27.6x median of industry peers, so the price already assumes better results.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare WDAY with peers and sector
Medians of 13 Application Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): PLTR 62, ORCL 56, CRM 53, ADBE 77, DDOG 50, INTU 71.
| Metric | WDAY | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 58 | 57 | 50 |
| Valuation | 69 | 59 | 50 |
| Growth | 67 | 63 | 54 |
| Profitability | 44 | 62 | 50 |
| Financial health | 50 | 47 | 49 |
| Dividends | – | 73 | 50 |
Sector leaders: highest X-Ray Score in Information Technology
WDAY ranks #24 of 75 in Information Technology and #7 of 14 in Application Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for WDAY
Each factor is rated by where WDAY stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 6 Good · 10 Average · 4 Bad of 20
Growth: 1 · 1 · 0
Profitability: 0 · 3 · 1
Financial strength: 1 · 1 · 2
Valuation: 1 · 3 · 1
Cash flow: 3 · 1 · 0
Efficiency: 0 · 1 · 0
| Factor | WDAY | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +15.4% | Good beats 74% | +9.7% | – | – |
| Revenue growth, last year | +13.1% | Average beats 46% | +13.7% | +16.8% | ▼ Worse |
| Profitability | |||||
| Operating margin | 10.7% | Bad beats 22% | 20.3% | 2.5% | ▲ Better |
| Net margin | 12.3% | Average beats 38% | 17.8% | 6.2% | ▲ Better |
| Return on invested capital | 14.3% | Average beats 34% | 19.4% | – | – |
| Return on equity | 19.4% | Average beats 48% | 21.0% | 5.8% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 0.3x | Average beats 65% | 0.8x | -12.1x | ▼ Worse |
| Interest cover | 9.8x | Bad beats 27% | 23.0x | 1.6x | ▲ Better |
| Current ratio | 0.91 | Bad beats 18% | 1.57 | 1.75 | ▼ Worse |
| Piotroski F-score | 8 / 9 | Good beats 89% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 41.3x | Average beats 35% | 34.2x | 101.0x | ▲ Better |
| Price / book | 8.0x | Average beats 52% | 8.4x | 8.3x | ≈ In line |
| Price / sales | 5.1x | Average beats 62% | 6.8x | 8.4x | ▲ Better |
| EV / EBITDA | 48.1x | Bad beats 18% | 24.9x | 157.9x | ▲ Better |
| Free cash flow yield | 5.5% | Good beats 80% | 3.3% | 2.8% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 28.0% | Average beats 65% | 22.3% | 26.4% | ≈ In line |
| Cash from operations / net income | 2.46 | Good beats 84% | 1.39 | 4.46 | ▼ Worse |
| Free cash flow growth, 3 years a year | +29.0% | Good beats 73% | +15.4% | – | – |
| Accruals (lower is better) | −11.5% | Good beats 87% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 68 days | Average beats 44% | 63 days | 88 days | ▲ Better |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 7 Good · ● 2 Average · ● 5 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldGood
Risk models
Altman Z''Bad
Piotroski F-ScoreGood
Growth
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDAAverage
Interest coverBad
Valuation
Fair value vs priceGood
EBIT / EV yieldBad
Profitability
Return on invested capitalAverage
Operating marginBad
Each check is graded against the company's sector, not a fixed number. Checklist score 55/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $5.1B | $6.2B | $7.3B | $8.4B | $9.6B |
| Operating income | −$116M | −$222M | $183M | $415M | $721M |
| Net income | $29M | −$367M | $1.4B | $526M | $693M |
| Operating cash flow | $1.7B | $1.7B | $2.1B | $2.5B | $2.9B |
| Operating margin | -2.3% | -3.6% | 2.5% | 4.9% | 7.5% |
| Free cash flow | – | $1.3B | $1.9B | $2.2B | $2.8B |
| Diluted EPS | $0.12 | $-1.44 | $5.21 | $1.95 | $2.59 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Neutral
4 bullish · 1 neutral · 3 bearish
Moving averages (daily)
| SMA 10 | 197.3 | Bullish |
| EMA 10 | 199.8 | Bullish |
| SMA 20 | 192.4 | Bullish |
| EMA 20 | 195.5 | Bullish |
| SMA 50 | 193.4 | Bullish |
| EMA 50 | 187.8 | Bullish |
| SMA 100 | 168.8 | Bullish |
| EMA 100 | 176.6 | Bullish |
| SMA 200 | 155.6 | Bullish |
| EMA 200 | 174.5 | Bullish |
Oscillators (daily)
| RSI (14) | 66.78 | Neutral |
| MACD (12, 26) | 4.50 | Bullish |
| Momentum (12) | 13.96 | Bullish |
| Stochastic %K (14) | 94.81 | Bearish |
| Williams %R (14) | -5.19 | Bearish |
| CCI (20) | 193.0 | Bearish |
Pivot points (classic, last session)
S3 202.3 | S2 204.4 | S1 207.2 | Pivot 209.3 | R1 212.1 | R2 214.2 | R3 217.0 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold WDAY
| ETF | Share of the fund |
|---|---|
| EAGL The 2023 ETF Series | 4.02% |
| VFLO VictoryShares Free Cash Flow | 1.89% |
| QTEC First Trust NASDAQ-100-Technology Sect... | 1.75% |
| RSPT Invesco S&P 500 Equal Weight Technolog... | 1.59% |
| FEGE First Eagle Global Equity | 1.32% |
| WCLD WisdomTree Cloud Computing | 1.18% |
| QQQE Direxion NASDAQ-100 Equal Weighted Ind... | 1.12% |
| FDN First Trust Dow Jones Internet Index | 1.03% |
The eight funds with the largest weight in WDAY among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
WDAY SEC filings
8-KSEC EDGAR
Entered a material agreement
424B5SEC EDGAR
424B5
424B5SEC EDGAR
424B5
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Results of operations; Exit or restructuring costs
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.