Workiva Defies SaaS Downturn with Strong Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy WK?
Source: Fool
- Significant Revenue Growth: Workiva reported $247 million in revenue for Q1 2026, marking a 20% year-over-year increase and surpassing the $245 million forecast, prompting management to raise its full-year revenue guidance to $1.039 billion, demonstrating resilience amid market challenges.
- Customer Base Expansion: While total customers grew only 4% to 6,665 enterprises, the number of customers with annual contract values over $300,000 surged by 38% to 605, and those over $500,000 increased by 39% to 265, indicating strong demand from high-value clients and enhancing revenue stability.
- Improved Profitability: Workiva achieved a GAAP profit of $18.9 million in Q1, a significant turnaround from a $21.3 million loss in the same quarter last year, showcasing effective cost management and boosting investor confidence.
- Analysts Optimistic on Outlook: According to The Wall Street Journal, 11 out of 13 analysts have rated Workiva as a buy, with an average price target of $84.55, suggesting a 71% upside potential over the next 12 months, reflecting a positive market sentiment towards its long-term growth prospects.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy WK?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on WK
Wall Street analysts forecast WK stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 52.290
Low
98.00
Averages
106.75
High
115.00
Current: 52.290
Low
98.00
Averages
106.75
High
115.00
About WK
Workiva Inc. is a provider of cloud-based reporting solutions that are designed to solve financial and non-financial business challenges at the intersection of data, process, and people. The Company offers its unified software-as-a-service (SaaS) platform that brings customers’ financial reporting, Environmental, Social, and Governance (ESG), and Governance, Risk, and Compliance (GRC) together in a controlled, secure, audit-ready platform. The Company's Workiva platform is multi-tenant cloud software deployed in multiple regions worldwide for assured integrated reporting. The Company's platform is built primarily on Amazon Web Services (AWS) and is composed of both proprietary and open-source technologies. Its Workiva platform helps customers by connecting and transforming data from hundreds of enterprise resource planning (ERP), human capital management (HCM), and customer relationship management (CRM) systems, as well as other third-party cloud and on-premises applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Workiva Defies SaaS Downturn with Strong Growth
- Significant Revenue Growth: Workiva reported $247 million in revenue for Q1 2026, marking a 20% year-over-year increase and surpassing the $245 million forecast, prompting management to raise its full-year revenue guidance to $1.039 billion, demonstrating resilience amid market challenges.
- Customer Base Expansion: While total customers grew only 4% to 6,665 enterprises, the number of customers with annual contract values over $300,000 surged by 38% to 605, and those over $500,000 increased by 39% to 265, indicating strong demand from high-value clients and enhancing revenue stability.
- Improved Profitability: Workiva achieved a GAAP profit of $18.9 million in Q1, a significant turnaround from a $21.3 million loss in the same quarter last year, showcasing effective cost management and boosting investor confidence.
- Analysts Optimistic on Outlook: According to The Wall Street Journal, 11 out of 13 analysts have rated Workiva as a buy, with an average price target of $84.55, suggesting a 71% upside potential over the next 12 months, reflecting a positive market sentiment towards its long-term growth prospects.
See More
Workiva Reports Strong Q1 2026 Earnings with 21% Subscription Growth
- Significant Revenue Growth: Workiva reported total revenue of $247 million for Q1 2026, reflecting a 20% year-over-year increase, with subscription revenue reaching $225 million, up 21%, indicating sustained strong demand for its platform and enhancing its competitive position in the market.
- Increase in Large Contracts: The number of contracts valued over $300,000 rose by 38%, while those over $500,000 increased by 39% in Q1, demonstrating the company's significant progress in attracting larger clients, which will drive future revenue growth.
- Improved Profitability: The non-GAAP operating margin was reported at 18.4%, with management guiding for an increase in the full-year operating margin to a range of 16.0%-16.5%, reflecting confidence in future profitability and helping to attract investor interest.
- Cash Flow and Buybacks: The company reported $863 million in cash and cash equivalents, and repurchased 763,000 shares for $50 million under its buyback program, showcasing strong capital return capabilities and effective liquidity management.
See More
Workiva Reports Significant Q1 Adjusted Earnings Growth
- Significant Earnings Growth: Workiva reported adjusted earnings of $0.77 per diluted share for Q1, a substantial increase from $0.14 in the same period last year, indicating a strong performance and notable improvement in profitability.
- Positive Market Reaction: This earnings growth exceeded market expectations, likely boosting investor confidence and potentially driving up the company's stock price, reflecting optimism about its future growth potential.
- Effective Strategic Execution: By optimizing its product offerings and enhancing customer service, the company successfully attracted more clients, driving sustained revenue growth and demonstrating effective strategic execution and market adaptability.
- Optimistic Future Outlook: With ongoing investments in technological innovation and market expansion, the company is expected to further enhance its market share and profitability, solidifying its leadership position in the industry.
See More
Workiva Q1 Earnings Beat Expectations with Positive Guidance
- Strong Earnings Report: Workiva's Q1 non-GAAP EPS of $0.86 exceeded expectations by $0.21, with revenue reaching $247 million, reflecting a robust 19.9% year-over-year growth that underscores the company's strong market position and growth potential.
- Positive Future Outlook: For Q2 2026, Workiva anticipates total revenue between $250 million and $252 million, with GAAP operating margins expected to range from 1.6% to 2.2% and non-GAAP operating margins from 14.5% to 15.0%, indicating strong confidence in future growth.
- Full Year Projections: Workiva expects total revenue for 2026 to be between $1.037 billion and $1.041 billion, with GAAP net income per diluted share projected at $0.89 to $0.99 and non-GAAP at $2.85 to $2.95, showcasing the company's sustained profitability and competitive edge in the market.
- Healthy Cash Flow: The company anticipates a free cash flow margin of approximately 20%, which not only enhances financial stability but also provides ample funding for future investments and expansion.
See More
Tech Stocks Volatility and AI Impact
- Tech Stock Volatility: In Q1 2026, technology stocks faced significant volatility, particularly as artificial intelligence (AI) shifted from a price-boosting catalyst to a cause for the 'Great Rotation,' raising concerns on Wall Street about the business models of the software-as-a-service (SaaS) sector.
- Salesforce Performance: Salesforce reported record revenue of $11.2 billion for Q4 FY2026, a 12% year-over-year increase, with a 50% rise in accounts using its AI agents under the Agentforce brand, indicating strong customer adoption of its AI offerings.
- Workiva's Resilience: Despite a nearly 40% drop in share price due to the Great Rotation, Workiva achieved $239 million in Q4 sales, a 20% year-over-year growth, and a net income of $11.8 million, showcasing the effectiveness of its AI integration.
- SentinelOne's Growth: SentinelOne reached $1 billion in revenue for FY2026, a 22% year-over-year increase, with expectations of $1.2 billion in FY2027, maintaining a strong position as an AI cybersecurity platform despite market fears, reflecting high customer loyalty.
See More
Workiva Inc Shares Show Oversold Signal
- Oversold Indicator: Workiva Inc (Ticker: WK) hit an RSI of 29.9 during Thursday's trading, indicating an oversold condition with a low of $50.98 per share, suggesting that recent selling pressure may be waning, thus providing potential buying opportunities for investors.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 66.0, WK's oversold status may attract bullish investors looking for entry points, aiming to profit from a potential rebound in share price.
- Price Fluctuation: WK's 52-week low stands at $50.98, while the high is $97.095, with the last trade at $52.19, indicating that the stock is hovering near its low, which could pique the interest of value investors.
- Investor Sentiment: As WK approaches its 52-week low, investors may reassess their strategies, considering the potential for a rebound in oversold conditions, which could influence future market dynamics.
See More
Workiva Defies SaaS Downturn with Strong Growth
- Significant Revenue Growth: Workiva reported $247 million in revenue for Q1 2026, marking a 20% year-over-year increase and surpassing the $245 million forecast, prompting management to raise its full-year revenue guidance to $1.039 billion, demonstrating resilience amid market challenges.
- Customer Base Expansion: While total customers grew only 4% to 6,665 enterprises, the number of customers with annual contract values over $300,000 surged by 38% to 605, and those over $500,000 increased by 39% to 265, indicating strong demand from high-value clients and enhancing revenue stability.
- Improved Profitability: Workiva achieved a GAAP profit of $18.9 million in Q1, a significant turnaround from a $21.3 million loss in the same quarter last year, showcasing effective cost management and boosting investor confidence.
- Analysts Optimistic on Outlook: According to The Wall Street Journal, 11 out of 13 analysts have rated Workiva as a buy, with an average price target of $84.55, suggesting a 71% upside potential over the next 12 months, reflecting a positive market sentiment towards its long-term growth prospects.
See More
Workiva Reports Strong Q1 2026 Earnings with 21% Subscription Growth
- Significant Revenue Growth: Workiva reported total revenue of $247 million for Q1 2026, reflecting a 20% year-over-year increase, with subscription revenue reaching $225 million, up 21%, indicating sustained strong demand for its platform and enhancing its competitive position in the market.
- Increase in Large Contracts: The number of contracts valued over $300,000 rose by 38%, while those over $500,000 increased by 39% in Q1, demonstrating the company's significant progress in attracting larger clients, which will drive future revenue growth.
- Improved Profitability: The non-GAAP operating margin was reported at 18.4%, with management guiding for an increase in the full-year operating margin to a range of 16.0%-16.5%, reflecting confidence in future profitability and helping to attract investor interest.
- Cash Flow and Buybacks: The company reported $863 million in cash and cash equivalents, and repurchased 763,000 shares for $50 million under its buyback program, showcasing strong capital return capabilities and effective liquidity management.
See More
Workiva Reports Significant Q1 Adjusted Earnings Growth
- Significant Earnings Growth: Workiva reported adjusted earnings of $0.77 per diluted share for Q1, a substantial increase from $0.14 in the same period last year, indicating a strong performance and notable improvement in profitability.
- Positive Market Reaction: This earnings growth exceeded market expectations, likely boosting investor confidence and potentially driving up the company's stock price, reflecting optimism about its future growth potential.
- Effective Strategic Execution: By optimizing its product offerings and enhancing customer service, the company successfully attracted more clients, driving sustained revenue growth and demonstrating effective strategic execution and market adaptability.
- Optimistic Future Outlook: With ongoing investments in technological innovation and market expansion, the company is expected to further enhance its market share and profitability, solidifying its leadership position in the industry.
See More
Workiva Q1 Earnings Beat Expectations with Positive Guidance
- Strong Earnings Report: Workiva's Q1 non-GAAP EPS of $0.86 exceeded expectations by $0.21, with revenue reaching $247 million, reflecting a robust 19.9% year-over-year growth that underscores the company's strong market position and growth potential.
- Positive Future Outlook: For Q2 2026, Workiva anticipates total revenue between $250 million and $252 million, with GAAP operating margins expected to range from 1.6% to 2.2% and non-GAAP operating margins from 14.5% to 15.0%, indicating strong confidence in future growth.
- Full Year Projections: Workiva expects total revenue for 2026 to be between $1.037 billion and $1.041 billion, with GAAP net income per diluted share projected at $0.89 to $0.99 and non-GAAP at $2.85 to $2.95, showcasing the company's sustained profitability and competitive edge in the market.
- Healthy Cash Flow: The company anticipates a free cash flow margin of approximately 20%, which not only enhances financial stability but also provides ample funding for future investments and expansion.
See More
Tech Stocks Volatility and AI Impact
- Tech Stock Volatility: In Q1 2026, technology stocks faced significant volatility, particularly as artificial intelligence (AI) shifted from a price-boosting catalyst to a cause for the 'Great Rotation,' raising concerns on Wall Street about the business models of the software-as-a-service (SaaS) sector.
- Salesforce Performance: Salesforce reported record revenue of $11.2 billion for Q4 FY2026, a 12% year-over-year increase, with a 50% rise in accounts using its AI agents under the Agentforce brand, indicating strong customer adoption of its AI offerings.
- Workiva's Resilience: Despite a nearly 40% drop in share price due to the Great Rotation, Workiva achieved $239 million in Q4 sales, a 20% year-over-year growth, and a net income of $11.8 million, showcasing the effectiveness of its AI integration.
- SentinelOne's Growth: SentinelOne reached $1 billion in revenue for FY2026, a 22% year-over-year increase, with expectations of $1.2 billion in FY2027, maintaining a strong position as an AI cybersecurity platform despite market fears, reflecting high customer loyalty.
See More
Workiva Inc Shares Show Oversold Signal
- Oversold Indicator: Workiva Inc (Ticker: WK) hit an RSI of 29.9 during Thursday's trading, indicating an oversold condition with a low of $50.98 per share, suggesting that recent selling pressure may be waning, thus providing potential buying opportunities for investors.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 66.0, WK's oversold status may attract bullish investors looking for entry points, aiming to profit from a potential rebound in share price.
- Price Fluctuation: WK's 52-week low stands at $50.98, while the high is $97.095, with the last trade at $52.19, indicating that the stock is hovering near its low, which could pique the interest of value investors.
- Investor Sentiment: As WK approaches its 52-week low, investors may reassess their strategies, considering the potential for a rebound in oversold conditions, which could influence future market dynamics.
See More
