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WDAY

Workday, Inc.

WDAY

Workday, Inc. • NASDAQ
$215.62 ▲ 0.13% (+0.28)
Market Cap $57.57 B
52w High $294.00
52w Low $205.33
Dividend Yield 0%
P/E 90.98
Volume 1.28M
Outstanding Shares 267.00M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2026 $2.432B ▲ $1.546B ▲ $252M ▲ 10.362% ▲ $0.95 ▲ $331M ▼
Q2-2026 $2.34B ▲ $1.51B ▲ $228M ▲ 9.744% ▲ $0.85 ▲ $414M ▲
Q1-2026 $2.232B ▲ $1.491B ▼ $68M ▼ 3.047% ▼ $0.26 ▼ $216M ▼
Q4-2025 $2.204B ▲ $1.525B ▲ $94M ▼ 4.265% ▼ $0.35 ▼ $239M ▼
Q3-2025 $2.153B $1.458B $193M 8.964% $0.73 $337M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2026 $6.843B ▼ $17.751B ▼ $8.872B ▲ $8.879B ▼
Q2-2026 $8.186B ▲ $17.961B ▲ $8.789B ▲ $9.172B ▲
Q1-2026 $7.97B ▼ $17.212B ▼ $8.293B ▼ $8.919B ▼
Q4-2025 $8.017B ▲ $17.977B ▲ $8.943B ▲ $9.034B ▲
Q3-2025 $7.157B $16.424B $7.8B $8.624B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2026 $252M ▲ $588M ▼ $1.687B ▲ $-926M ▼ $1.349B ▲ $550M ▼
Q2-2026 $228M ▲ $616M ▲ $13M ▲ $-349M ▲ $281M ▲ $588M ▲
Q1-2026 $68M ▼ $457M ▼ $-523M ▲ $-501M ▼ $-566M ▼ $421M ▼
Q4-2025 $94M ▼ $1.112B ▲ $-727M ▼ $-154M ▲ $231M ▲ $1.026B ▲
Q3-2025 $193M $406M $-450M $-282M $-326M $357M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Professional Services
Professional Services
 $180.00M ▲$200.00M ▲$170.00M ▼$180.00M ▲
Subscription Services
Subscription Services
 $1.90Bn ▲$1.96Bn ▲$2.04Bn ▲$2.06Bn ▲

Five-Year Company Overview

Income Statement

Income Statement Workday’s income statement shows a business that has scaled nicely and is maturing. Revenue has grown steadily every year, and gross profit has followed the same path, suggesting the core software business is strong and priced well. Operating results have moved from losses to consistent, though still relatively slim, profits, which is typical for a cloud software company shifting from “growth first” toward more balance between growth and efficiency. Net income has been choppier: earlier years showed losses, then a sharp jump to an unusually strong profit, followed by a step down but still clearly in profitable territory. That pattern hints at some one‑off items or accounting effects influencing the bottom line. The more telling story is that underlying operating profit and EBITDA have steadily improved, indicating the business engine is becoming more efficient even if reported earnings bounce around from year to year.

Balance Sheet

Balance Sheet The balance sheet reflects a growing, scaled software company with a solid foundation. Total assets have expanded meaningfully over the past five years, which lines up with ongoing investment in the platform, acquisitions, and customer growth. Shareholders’ equity has also risen steadily, showing that the company is building value on its own balance sheet rather than relying solely on borrowing. Debt has increased over time but remains moderate relative to the size of the business and its cash generation. Cash on hand has been fairly stable, not excessively large but sufficient to provide flexibility. Overall, the balance sheet looks supportive of continued investment and growth, though it is not a “no‑debt” story—there is leverage to watch if growth ever slows materially.

Cash Flow

Cash Flow Cash flow is one of Workday’s clear strengths. Cash generated from day‑to‑day operations has grown consistently, tracking the rise in revenue. Free cash flow is solid and has also improved over time, after funding the company’s relatively modest capital spending needs. Because the business is not capital‑intensive, a good share of operating cash turns into free cash that can support R&D, sales expansion, acquisitions, and debt service. This pattern is typical of successful subscription software models, where strong renewal rates and multi‑year contracts translate into dependable cash inflows. The main risk is less about current cash health and more about maintaining that flow through continued customer wins and renewals in a competitive enterprise market.

Competitive Edge

Competitive Edge Workday holds a strong position in its core markets of human capital management and financial management for large and mid‑sized enterprises. Its main edge is a single, unified cloud platform that handles HR, finance, and planning together, whereas some rivals operate with more fragmented product suites. This “one system” approach simplifies data management for customers and can make Workday sticky once implemented. High switching costs are a key part of its moat. Replacing a system that runs core HR and finance is expensive, time‑consuming, and risky for customers, which supports high renewal rates and long relationships. Workday is also known for strong customer satisfaction and a modern user experience, which helps in competitive bids against larger incumbents like Oracle and SAP, as well as newer cloud players. Risks include intense competition from those same large vendors, who are heavily investing in their own cloud and AI capabilities, and the long, complex sales cycles involved in large enterprise deals. International expansion is a major opportunity, but also an execution test, as Workday must adapt to local regulations and entrenched regional competitors.

Innovation and R&D

Innovation and R&D Innovation is central to Workday’s strategy and moat. The company has built its platform around a unified data model and has been embedding artificial intelligence and machine learning into its products for many years, rather than treating AI as a bolt‑on feature. This shows up in automated financial workflows, smarter HR processes, and analytics that can surface insights across finance and people data. Workday’s roadmap is heavily focused on expanding AI: branded under “Workday Illuminate,” it includes AI agents and a Workday Assistant designed to automate more tasks and provide proactive recommendations. The company is also opening its platform through Workday Extend and an AI partner network, encouraging customers and partners to build specialized applications on top of its core system. Targeted industry solutions (for healthcare, financial services, technology, and others) further deepen its relevance. The trade‑off is ongoing high R&D and product investment, which can weigh on margins in the short term but is important for defending against fast‑moving AI competitors. The big open question is how effectively Workday can turn its AI and platform investments into visible productivity gains and differentiated value that customers are willing to pay for over the long run.

Summary

Overall, Workday looks like a scaled cloud software company that has transitioned from pure growth mode toward a more balanced model of growth with improving profitability. Revenues and gross profit have grown steadily, operating performance has moved into the black, and cash flows are strong and strengthening, all supported by a balance sheet that can fund continued innovation and expansion. Strategically, Workday benefits from a sticky customer base, a unified platform across HR and finance, and high switching costs that underpin strong retention. Its heavy emphasis on AI, data, and extensibility suggests a long runway for product innovation, while international growth and deeper penetration of financial and planning workloads represent important opportunities. On the risk side, margins are still relatively thin compared with the company’s scale, net income has shown some volatility, and competitive pressures from large incumbents and AI‑focused challengers remain high. Success will likely hinge on Workday’s ability to keep executing on its AI roadmap, maintain high customer satisfaction, and continue converting its strong competitive position into durable, profitable growth over time.

NEWS

November 25, 2025 · 4:01 PM UTC

Workday Announces Fiscal 2026 Third Quarter Financial Results

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November 19, 2025 · 2:30 AM UTC

Workday Expands Workday GO, the All-in-One "Workday for All" Solution, to Support Businesses of All Sizes

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November 18, 2025 · 10:20 AM UTC

TMA Systems Completes Workday Design Approved Integration

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