Workday is set to give its latest quarterly earnings report on Thursday, 2025-05-22. Here's what investors need to know before the announcement.

Analysts estimate that Workday will report an earnings per share (EPS) of $2.01.

Anticipation surrounds Workday's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.14, leading to a 6.22% increase in the share price on the subsequent day.

Here's a look at Workday's past performance and the resulting price change:

Stock Performance

Shares of Workday were trading at $273.84 as of May 20. Over the last 52-week period, shares are up 3.95%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Workday

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Workday.

Workday has received a total of 25 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $305.96, the consensus suggests a potential 11.73% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Synopsys, Autodesk and Roper Technologies, three major players in the industry, shedding light on their relative performance expectations and market positioning.

Analysts currently favor an Outperform trajectory for Synopsys, with an average 1-year price target of $595.89, suggesting a potential 117.61% upside.

Analysts currently favor an Outperform trajectory for Autodesk, with an average 1-year price target of $332.58, suggesting a potential 21.45% upside.

Analysts currently favor an Neutral trajectory for Roper Technologies, with an average 1-year price target of $599.14, suggesting a potential 118.79% upside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for Synopsys, Autodesk and Roper Technologies, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Workday is at the top for Revenue Growth and Gross Profit among its peers. It is at the bottom for Return on Equity.

Get to Know Workday Better

Workday is a software company that offers human capital management, or HCM, financial management, and business planning solutions for enterprises. Known for being a cloud-only software provider, Workday was founded in 2005 and is headquartered in Pleasanton, California.

Workday: A Financial Overview

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Workday's revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2025, the company achieved a revenue growth rate of approximately 15.04%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Workday's net margin is impressive, surpassing industry averages. With a net margin of 4.25%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Workday's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.06%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Workday's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.55%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Workday's debt-to-equity ratio is below the industry average. With a ratio of 0.37, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Workday visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.