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

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

Workday Trading Down 2.5 %

Shares of WDAY traded down $6.59 during mid-day trading on Tuesday, reaching $255.22. 4,791,025 shares of the company were exchanged, compared to its average volume of 2,208,784. The business has a 50 day simple moving average of $260.42 and a two-hundred day simple moving average of $253.82. The company has a debt-to-equity ratio of 0.35, a quick ratio of 2.05 and a current ratio of 2.05. The stock has a market capitalization of $67.89 billion, a PE ratio of 42.33, a PEG ratio of 3.55 and a beta of 1.35. Workday has a 52 week low of $199.81 and a 52 week high of $311.28.

Analyst Upgrades and Downgrades

WDAY has been the subject of a number of analyst reports. Morgan Stanley downgraded shares of Workday from an “overweight” rating to an “equal weight” rating and decreased their price objective for the company from $330.00 to $275.00 in a research report on Wednesday, February 19th. Guggenheim raised Workday from a “sell” rating to a “neutral” rating in a report on Monday, January 6th. Loop Capital upped their price target on shares of Workday from $242.00 to $260.00 and gave the company a “hold” rating in a research note on Wednesday, February 19th. Citigroup dropped their price objective on shares of Workday from $287.00 to $270.00 and set a “neutral” rating for the company in a research note on Thursday, January 16th. Finally, Barclays cut their target price on Workday from $314.00 to $305.00 and set an “overweight” rating for the company in a research report on Wednesday, November 27th. Ten research analysts have rated the stock with a hold rating, twenty have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $291.11.

Insider Activity at Workday

In other news, major shareholder David A. Duffield sold 56,000 shares of the stock in a transaction on Monday, January 13th. The shares were sold at an average price of $246.42, for a total transaction of $13,799,520.00. Following the completion of the sale, the insider now directly owns 60,000 shares in the company, valued at $14,785,200. This represents a 48.28 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Sayan Chakraborty sold 5,498 shares of the business’s stock in a transaction 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 in the company, valued at approximately $30,369,458. The trade was a 4.34 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 438,819 shares of company stock worth $113,142,592 over the last ninety days. Insiders own 20.00% of the company’s stock.

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.