Workday Reports Strong Earnings but Lowers Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy WDAY?
Source: Benzinga
Workday's stock rose by 5% as it crossed above the 5-day SMA, despite broader market declines in the Nasdaq-100 and S&P 500.
The company reported total revenues of $2.532 billion, surpassing the consensus estimate of $2.52 billion, indicating financial stability despite challenges in business momentum. However, Workday lowered its subscription revenue growth guidance for Q1 FY2027 from 14% to 13.4%, reflecting management's cautious outlook on future performance. Analysts noted that demand was impacted by budget constraints from federal, SLED, and healthcare customers, leading to deal delays, although subscription revenue grew approximately 16% year-on-year, showcasing some market resilience.
Despite the positive earnings report, the lowered guidance may raise concerns among investors about future growth prospects, particularly in a challenging economic environment.
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Analyst Views on WDAY
Wall Street analysts forecast WDAY stock price to rise
31 Analyst Rating
22 Buy
9 Hold
0 Sell
Moderate Buy
Current: 148.140
Low
235.00
Averages
275.19
High
325.00
Current: 148.140
Low
235.00
Averages
275.19
High
325.00
About WDAY
Workday, Inc. is a provider of an artificial intelligence (AI) platform to help organizations manage their people, money, and agents. The Company provides over 11,000 organizations with cloud solutions powered by AI to help solve business challenges, including supporting and empowering their workforce, managing their finances and spending in an ever-changing environment, and planning for the unexpected. It offers Financial Management, Spend Management, Human Capital Management (HCM), Planning, and Analytics applications. The Company sells its solutions worldwide primarily through direct sales. It also offers professional services, both directly and through its Workday Services Partners, to help customers deploy its solutions. It offers businesses flexible solutions to help them adapt to their industry-specific needs and respond to change. It serves various industries, including professional and business services, financial services, healthcare, education, government, and others.
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.
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