Workday, Inc. (WDAY)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-07-09
$137.88-4.02%
Close 2026-07-08 · 1-day change
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Track WDAY free→Warn: Management is running behind on a stated commitment.
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
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Maintain focus on achieving a non-GAAP operating margin of 30.5% for fiscal 2027.
Stated in 3 of last 3 quarters. Non-GAAP operating margin was 31.8% in 2026-Q2, up from 30.6% in 2026-Q1. Management has increased its fiscal 2027 non-GAAP operating margin guidance to 30.5%, showing progress towards this target. The trajectory indicates delivering on margin improvement.
“CFO: 'We are increasing our fiscal 2027 non-GAAP operating margin guidance to 30.5%.”
“CFO: 'We expect fiscal 2027 non-GAAP operating margin of approximately 30.0%.”
“CFO: 'Non-GAAP operating income for the fourth quarter was $774 million, or 30.6% of revenues.”
Breaks if: Subscription revenue growth falls below 12% YoY in FY27
Focus on growing subscription revenue through customer adoption and expansion.
Stated in 4 of last 4 quarters. Subscription revenues were $2.354 billion, up 14.3% year-over-year. The company is reiterating its fiscal 2027 subscription revenue outlook of $9.925 billion to $9.950 billion, indicating a focus on growth. The trajectory shows consistent growth in subscription revenue, aligning with management's stated priority.
“CFO: 'We are reiterating our fiscal 2027 subscription revenue outlook of $9.925 billion to $9.950 billion.'”
“CFO: 'We expect fiscal 2027 subscription revenues of approximately $9.925 billion to $9.950 billion.'”
“CFO: 'Subscription revenues were $8.833 billion, up 14.5% year-over-year.'”
“CFO: 'Subscription revenues of $2.360 billion, an increase of 15.7% from the same period last year.'”