WDAY beats Q1 estimates as strong demand for its solutions and broad industry adoption drive solid revenue and earnings growth.
Workday delivered a strong Q1 with beats on revenue, EPS, and margins, plus robust guidance and accelerating AI-driven growth. Despite stellar results, the stock dropped 7% post-earnings due to valuation concerns and high investor expectations after a recent run-up. AI monetization, mid-market expansion via Workday GO, and deepening platform adoption are driving sustainable business momentum and cash flow.
Workday, Inc. (NASDAQ:WDAY ) Q1 2026 Earnings Conference Call May 22, 2025 4:30 PM ET Company Participants Justin Furby - Vice President, Investor Relations Carl Eschenbach - Chief Executive Officer Zane Rowe - Chief Financial Officer Gerrit Kazmaier - President, Product & Technology Conference Call Participants Kirk Materne - Evercore ISI Brad Sills - Bank of America Mark Murphy - JPMorgan Brent Thill - Jefferies Michael Turrin - Wells Fargo Brad Zelnick - Deutsche Bank Karl Keirstead - UBS Rishi Jaluria - RBC Alex Zukin - Wolfe Research Derrick Wood - TD Cowen Scott Berg - Needham & Company Operator Welcome to Workday's First Quarter Full Year 2026 Earnings Call. At this time, all participants are in a listen-only mode.
Market indexes broke the spell today about high bond yields providing a headwind for equities, but nosedived into the close.
Although the revenue and EPS for Workday (WDAY) give a sense of how its business performed in the quarter ended April 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Workday (WDAY) came out with quarterly earnings of $2.23 per share, beating the Zacks Consensus Estimate of $1.99 per share. This compares to earnings of $1.74 per share a year ago.
WDAY expands Illuminate AI with new intelligent agents to accelerate hiring, finance and frontline operations.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Workday (NASDAQ:WDAY), a provider of cloud-based software, is set to announce its earnings on Thursday, May 22, 2025. Analyzing the previous five years, Workday's stock has achieved a positive one-day return after its earnings announcements in 60% of instances.
WDAY's first-quarter top line is likely to have gained from healthy demand across multiple end markets, product innovation and AI focus.
Beyond analysts' top -and-bottom-line estimates for Workday (WDAY), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended April 2025.
Workday exhibits deliberate, steady growth with expanding margins, strong cash flow, and a robust balance sheet, reflecting textbook financial discipline. Despite decelerating revenue growth, Workday's profitability profile is improving, with analysts expecting further margin expansion and cash generation. Valuation appears attractive: Workday trades at a lower EV/Revenue multiple than slower-growing peers SAP and Oracle, suggesting undervaluation or at least fair pricing.