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
QuarterlyIQ Insights · WDAY
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks WDAY against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6360).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue growing subscription revenue with a target of approximately $9.94 billion for fiscal 2027, representing 12% to 13% growth.
Stated as a priority in all 6 quarters from 2025-Q2 through 2026-Q3. Subscription revenue grew from $8.833 billion in fiscal 2026 to an expected $9.94 billion in fiscal 2027, representing about 12% to 13% growth. Quarterly subscription revenue increased 13.9% year-over-year to $2.471 billion in 2027-Q2. Management is delivering consistent growth aligned with stated targets.
“We now expect fiscal 2027 subscription revenue of $9.940 billion to $9.950 billion, growth of 13%”
“We are reiterating our fiscal 2027 subscription revenue outlook of $9.925 billion to $9.950 billion”
“We expect fiscal 2027 subscription revenues of approximately $9.925 billion to $9.950 billion, representing 12% to 13% growth.”
“We expect fiscal 2027 subscription revenues of approximately $9.925 billion to $9.950 billion, representing 12% to 13% growth.”
“We expect fiscal 2027 subscription revenues of $9.925 billion to $9.950 billion, representing growth of 12% to 13%”
“We expect fiscal 2027 subscription revenues of $9.925 billion to $9.950 billion, representing growth of 12% to 13%”
Continue improving non-GAAP operating margin with a target raised to 31.0% for fiscal 2027, focusing on operational efficiencies and AI investments.
Stated as a priority in 6 quarters from 2025-Q2 through 2026-Q3. Non-GAAP operating margin improved from 29.6% in fiscal 2026 to 31.1% in 2027-Q2, exceeding prior guidance. Management raised fiscal 2027 margin guidance from 30.0% to 31.0%, showing delivery and operational efficiency progress.
Invest in and expand AI-driven products and platform capabilities to drive customer adoption and platform growth in HR and finance workflows.
Stated as a priority in 6 quarters from 2025-Q2 through 2026-Q3. Customer adoption of AI agents grew from about 4,000 in 2026-Q2 to over 5,500 in 2026-Q3, a 35% increase. AI now drives over 25% of new ACV, indicating management is delivering on AI expansion and platform innovation.
“AI driving more than 25% of our new ACV and more than 5,500 customers now using at least one of our organic agents”
Implement an open-ended share repurchase program authorized for up to $4 billion to return capital to shareholders.
Newly stated in 2026-Q3 with Board authorization for up to $4 billion in share repurchases. Workday repurchased $1.3 billion of shares in 2027-Q2, demonstrating initial execution of the program. This is a recent priority with early delivery evidence.
Acquire companies like Paradox and Sana to expand AI capabilities and talent acquisition solutions.
Stated in 2 quarters: 2025-Q3 announced acquisition of Paradox; 2025-Q4 noted backlog growth including Paradox and Sana. Subscription revenue backlog grew 15.8% year-over-year partly due to these acquisitions. Management is delivering on strategic AI and talent acquisition expansion.
Over the trailing year it converted 3.06x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, Fed net liquidity, long-term interest rates, real (inflation-adjusted) rates (low R² over the window).
16 material management or governance events in the past 24 months, led by executive changes. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“Increasing our fiscal 2027 non-GAAP operating margin guidance to 31.0%”
“We are reiterating our fiscal 2027 non-GAAP operating margin guidance to 30.5%”
“We are reiterating our fiscal 2027 non-GAAP operating margin guidance to 30.5%”
“We expect fiscal 2027 non-GAAP operating margin of approximately 30.0%”
“We expect fiscal 2027 non-GAAP operating margin of approximately 30.0%”
“We expect fiscal 2027 non-GAAP operating margin of approximately 30.0%”
“The number of customers using Workday's organically developed agents has more than doubled quarter-over-quarter, with over 4,000 customers using at least one of these agents”
“Our focus remains on executing on our agentic AI roadmap while driving operational efficiencies as we scale”
“We are prioritizing investment in our agentic AI roadmap to capture a larger market opportunity”
“We accelerate innovation across the platform and bring exciting AI solutions to market”
“Workday introduced new Illuminate Agents to accelerate hiring, enhance frontline worker experiences, simplify financial processes, and improve employee information access”
“Board authorized the repurchase of up to $4.0 billion of Class A common stock”
“Acquisitions of Paradox and Sana contributed to subscription revenue backlog growth”
“Workday entered into definitive agreement to acquire Paradox, an AI company redefining frontline candidate experience”