Workday (NASDAQ:WDAY) Issues Earnings Results, Misses Expectations By $1.27 EPS

Workday (NASDAQ:WDAY) announced its quarterly earnings results on Tuesday. The software maker reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.75 by ($1.27), Zacks reports. Workday had a return on equity of 6.13% and a net margin of 19.86%. Workday updated its FY 2026 guidance to EPS and its Q1 2026 guidance to EPS.

Workday Stock Performance

WDAY traded down $6.59 on Tuesday, hitting $255.22. The company’s stock had a trading volume of 4,791,025 shares, compared to its average volume of 2,208,784. Workday has a 12 month low of $199.81 and a 12 month high of $311.28. The company’s 50 day simple moving average is $260.42 and its 200-day simple moving average is $253.82. The company has a quick ratio of 2.05, a current ratio of 2.05 and a debt-to-equity ratio of 0.35. The firm has a market cap of $67.89 billion, a P/E ratio of 42.33, a price-to-earnings-growth ratio of 3.55 and a beta of 1.35.

Analyst Upgrades and Downgrades

WDAY has been the topic of a number of recent research reports. Royal Bank of Canada increased their target price on Workday from $300.00 to $320.00 and gave the stock an “outperform” rating in a report on Wednesday, December 18th. Guggenheim raised shares of Workday from a “sell” rating to a “neutral” rating in a research note on Monday, January 6th. StockNews.com downgraded shares of Workday from a “buy” rating to a “hold” rating in a research report on Monday, January 13th. Mizuho raised their price target on shares of Workday from $280.00 to $320.00 and gave the company an “outperform” rating in a research report on Friday, December 13th. Finally, Oppenheimer reissued an “outperform” rating and set a $300.00 price objective on shares of Workday in a report on Tuesday, December 3rd. Ten research analysts have rated the stock with a hold rating, twenty have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $291.11.

Insider Activity

In related news, insider Sayan Chakraborty sold 5,498 shares of the business’s stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $250.78, for a total transaction of $1,378,788.44. Following the completion of the transaction, the insider now owns 121,100 shares of the company’s stock, valued at approximately $30,369,458. The trade was a 4.34 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Mark S. Garfield sold 472 shares of the stock in a transaction that occurred on Monday, January 13th. The stock was sold at an average price of $248.24, for a total transaction of $117,169.28. Following the completion of the sale, the chief accounting officer now owns 35,408 shares in the company, valued at $8,789,681.92. This represents a 1.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 438,819 shares of company stock worth $113,142,592. 20.00% of the stock is owned by corporate insiders.

Workday Company Profile

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.