Workday, Inc. (WDAY)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
$195.79-5.38%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
Intact: The reason to own it still holds.
Workday grows subscription revenue about 14% yearly. Profit margin is near 30.5%. Partnerships with Amazon and Microsoft boost AI and cloud offerings. The company raised its revenue and margin guidance for fiscal 2027.
AI discrimination claims could slow AI growth. Rising costs might hurt profit margins. Competition could pressure subscription growth below 10%.
The price is about 37% below our fair value near $225. Analysts expect 12% revenue growth. Our view is more optimistic on growth and margins.
Breaks if: Partnerships fail to expand or contribute to growth
Breaks if: Operating margin falls below 30.5% in FY27
Subscription revenue growth falls below 12% YoY in FY27
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a durable compounder with a focus on subscription revenue and AI capabilities. The current thesis state is intact, supported by recent earnings beats and a share buyback announcement.
The market seems to have priced in a justified valuation, with WDAY appearing cheap compared to its peers. There is a slight expectations gap, indicating that some positive performance may already be anticipated.
Management is on track with its goals for subscription revenue and AI expansion, which supports a strong fundamental outlook. However, there is a high risk due to recent erratic earnings surprises in the industry, which could impact future performance.
Key factors include the potential for the Fed to cut rates, which could benefit WDAY, and the performance of sector leaders like SAP and CRM. A negative guidance revision could significantly harm credibility and stock performance.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Workday's board authorized an additional $4 billion for share buybacks. This move signals increased capital return to shareholders. There are no new threats to the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Over the next 1 to 3 years, WDAY's performance will depend on management's execution and broader market conditions. Not investment advice.