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Insights into Workday's Upcoming Earnings
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Insights into Workday's Upcoming Earnings
Aug 20, 2025 7:20 AM

Workday will release its quarterly earnings report on Thursday, 2025-08-21. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Workday to report an earnings per share (EPS) of $1.59.

The announcement from Workday is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.22, leading to a 12.52% drop in the share price on the subsequent day.

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

Quarter Q1 2026 Q4 2025 Q3 2025 Q2 2025
EPS Estimate 2.01 1.78 1.76 1.65
EPS Actual 2.23 1.92 1.89 1.75
Price Change % -13.0% 6.0% -6.0% 12.0%

Performance of Workday Shares

Shares of Workday were trading at $229.79 as of August 19. Over the last 52-week period, shares are down 0.19%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Insights on Workday

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Workday.

With 17 analyst ratings, Workday has a consensus rating of Outperform. The average one-year price target is $285.24, indicating a potential 24.13% upside.

Understanding Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Autodesk, Roper Technologies and Datadog, three prominent industry players, offering insights into their relative performance expectations and market positioning.

Analysts currently favor an Outperform trajectory for Autodesk, with an average 1-year price target of $344.21, suggesting a potential 49.79% upside.

Analysts currently favor an Buy trajectory for Roper Technologies, with an average 1-year price target of $655.6, suggesting a potential 185.3% upside.

Analysts currently favor an Buy trajectory for Datadog, with an average 1-year price target of $155.5, suggesting a potential 32.33% downside.

Overview of Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Autodesk, Roper Technologies and Datadog, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Workday Outperform 12.56% $1.70B 0.76%
Autodesk Outperform 15.24% $1.47B 5.80%
Roper Technologies Buy 13.21% $1.35B 1.95%
Datadog Buy 28.12% $660.78M 0.09%

Key Takeaway:

Workday ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. Workday 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.

A Deep Dive into Workday's Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Workday's remarkable performance in 3 months is evident. As of 30 April, 2025, the company achieved an impressive revenue growth rate of 12.56%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Workday's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 3.04%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Workday's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.76%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Workday's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.39%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.38, Workday adopts a prudent financial strategy, indicating a balanced approach to debt management.

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.

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