Workday Q4 2026 Earnings: Strategic Shift Towards AI-Driven Innovation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy WDAY?
Source: seekingalpha
- Strong Financial Performance: Workday reported Q4 subscription revenue of $2.36 billion, up 16% year-over-year, with full-year subscription revenue reaching $8.833 billion, reflecting robust growth amidst a competitive landscape.
- Rapid AI Product Growth: The company delivered 1.7 billion AI actions across its platform in FY '26, with over $100 million in new annual contract value generated in Q4, growing over 100% year-over-year, indicating strong market demand for AI solutions.
- Solid Customer Base: With over 11,500 global customers, expansion deals involving AI were nearly 50% larger on average, showcasing high customer trust and recognition of the value of new technologies.
- Optimistic Future Outlook: Management anticipates FY '27 subscription revenue of approximately $9.925 billion to $9.950 billion, reflecting a growth of 12% to 13%, while planning to increase AI investments to drive long-term growth, despite a slower pace of margin expansion in the near term.
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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: 129.210
Low
235.00
Averages
275.19
High
325.00
Current: 129.210
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.
Workday Q4 Earnings Forecast and CEO Departure
- Earnings Release Announcement: Workday is set to release its Q4 earnings after the market closes on February 24, with expected earnings per share of $2.32, reflecting a 20.9% increase from $1.92 in the same quarter last year, indicating improved profitability that could positively impact stock prices.
- Revenue Growth Expectations: Analysts forecast Workday's quarterly revenue to reach $252 million, up 14.0% from $221 million a year ago, showcasing the company's sustained growth potential in the market, which may attract more investor interest.
- CEO Departure Impact: The announcement on February 9 regarding CEO Carl Eschenbach's resignation may raise concerns about the company's future strategic direction, contributing to a 6.2% drop in shares to $129.21 on Monday, which could affect investor confidence.
- Analyst Rating Updates: Benzinga offers the latest analyst ratings, allowing investors to filter by stock ticker, company name, and other variables, aiding them in understanding market sentiment and investment opportunities.
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Workday Q4 2026 Earnings: Strategic Shift Towards AI-Driven Innovation
- Strong Financial Performance: Workday reported Q4 subscription revenue of $2.36 billion, up 16% year-over-year, with full-year subscription revenue reaching $8.833 billion, reflecting robust growth amidst a competitive landscape.
- Rapid AI Product Growth: The company delivered 1.7 billion AI actions across its platform in FY '26, with over $100 million in new annual contract value generated in Q4, growing over 100% year-over-year, indicating strong market demand for AI solutions.
- Solid Customer Base: With over 11,500 global customers, expansion deals involving AI were nearly 50% larger on average, showcasing high customer trust and recognition of the value of new technologies.
- Optimistic Future Outlook: Management anticipates FY '27 subscription revenue of approximately $9.925 billion to $9.950 billion, reflecting a growth of 12% to 13%, while planning to increase AI investments to drive long-term growth, despite a slower pace of margin expansion in the near term.
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- Strong Performance: Workday's Q4 revenue reached $2.53 billion, a 14.5% year-over-year increase, slightly exceeding Wall Street's expectation of $2.52 billion, indicating robust market performance but failing to support stock price.
- Net Income Growth: The company reported diluted net income per share of $2.47, significantly up from $1.92 in the same period last year, surpassing analysts' expectations of $2.32, reflecting improved profitability.
- Subscription Revenue Increase: Workday's subscription revenue grew by 15.7% to $2.36 billion this quarter, demonstrating ongoing growth potential in its core business, although future growth expectations have moderated.
- Cautious Future Outlook: The company anticipates a 13% increase in subscription revenue to $2.335 billion in the upcoming quarter, with fiscal year 2027 growth projected at 12% to 13%, lower than the 14.5% growth reported for fiscal year 2026, which may impact investor confidence.
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- High Valuation Multiples: Palantir's price-to-sales and price-to-earnings ratios are at historically high levels within the software market, and while its revenue and profitability outpace many peers, the stark valuation disparity raises concerns about its future performance.
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- Earnings Release Announcement: Workday is set to release its Q4 earnings after the market closes on February 24, with expected earnings per share of $2.32, reflecting a 20.9% increase from $1.92 in the same quarter last year, indicating improved profitability that could positively impact stock prices.
- Revenue Growth Expectations: Analysts forecast Workday's quarterly revenue to reach $252 million, up 14.0% from $221 million a year ago, showcasing the company's sustained growth potential in the market, which may attract more investor interest.
- CEO Departure Impact: The announcement on February 9 regarding CEO Carl Eschenbach's resignation may raise concerns about the company's future strategic direction, contributing to a 6.2% drop in shares to $129.21 on Monday, which could affect investor confidence.
- Analyst Rating Updates: Benzinga offers the latest analyst ratings, allowing investors to filter by stock ticker, company name, and other variables, aiding them in understanding market sentiment and investment opportunities.
See More
Workday Q4 2026 Earnings: Strategic Shift Towards AI-Driven Innovation
- Strong Financial Performance: Workday reported Q4 subscription revenue of $2.36 billion, up 16% year-over-year, with full-year subscription revenue reaching $8.833 billion, reflecting robust growth amidst a competitive landscape.
- Rapid AI Product Growth: The company delivered 1.7 billion AI actions across its platform in FY '26, with over $100 million in new annual contract value generated in Q4, growing over 100% year-over-year, indicating strong market demand for AI solutions.
- Solid Customer Base: With over 11,500 global customers, expansion deals involving AI were nearly 50% larger on average, showcasing high customer trust and recognition of the value of new technologies.
- Optimistic Future Outlook: Management anticipates FY '27 subscription revenue of approximately $9.925 billion to $9.950 billion, reflecting a growth of 12% to 13%, while planning to increase AI investments to drive long-term growth, despite a slower pace of margin expansion in the near term.
See More
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- Zeta Global Beats Expectations: Zeta Global reported Q4 revenue of $394.64 million, up 25.41% year-over-year and exceeding estimates of $379.23 million, marking its 18th consecutive beat-and-raise quarter, with projected FY2026 revenue of $1.75 to $1.76 billion boosting market confidence.
- MercadoLibre Misses Earnings: MercadoLibre's Q4 earnings of $11.03 per share fell short of the $11.59 estimate, although revenue of $8.76 billion surpassed expectations, indicating growth potential despite a stock decline in after-hours trading.
- Workday's Strong Performance: Workday reported Q4 earnings of $2.47 per share, beating the $2.32 estimate, with revenue rising to $2.53 billion year-over-year, although first-quarter guidance was slightly below expectations, yet strong subscription backlog indicates future growth potential.
See More
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- Lucid Group Earnings Miss: Lucid reported a wider-than-expected loss of $3.62 per share in Q4, despite revenue growth exceeding estimates, leading to a more than 4% drop in shares, highlighting ongoing profitability challenges for the company.
- Workday Revenue Outlook Disappoints: Workday's forecast for Q1 subscription revenue at $2.34 billion fell short of the $2.35 billion expected by analysts, resulting in nearly a 10% decline in shares, reflecting market concerns about its future growth prospects.
- Cava Group Strong Performance: Cava reported Q4 earnings of 4 cents per share on revenue of $275 million, surpassing analyst expectations, which led to an 8% increase in shares, and the company anticipates a 3% to 5% rise in same-store sales in 2026, indicating enhanced market competitiveness.
- First Solar Guidance Misses Expectations: First Solar's Q4 earnings of $4.84 per share fell short of the $5.15 expected, although revenue of $1.68 billion exceeded forecasts; however, its full-year guidance of $4.9 billion to $5.2 billion significantly underperformed the $6.12 billion expected, causing an 11% drop in shares.
See More
Workday Reports Strong Q4 Results but Shares Drop Over 8%
- Strong Performance: Workday's Q4 revenue reached $2.53 billion, a 14.5% year-over-year increase, slightly exceeding Wall Street's expectation of $2.52 billion, indicating robust market performance but failing to support stock price.
- Net Income Growth: The company reported diluted net income per share of $2.47, significantly up from $1.92 in the same period last year, surpassing analysts' expectations of $2.32, reflecting improved profitability.
- Subscription Revenue Increase: Workday's subscription revenue grew by 15.7% to $2.36 billion this quarter, demonstrating ongoing growth potential in its core business, although future growth expectations have moderated.
- Cautious Future Outlook: The company anticipates a 13% increase in subscription revenue to $2.335 billion in the upcoming quarter, with fiscal year 2027 growth projected at 12% to 13%, lower than the 14.5% growth reported for fiscal year 2026, which may impact investor confidence.
See More
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- Remarkable Investment Returns: Since the launch of ChatGPT by OpenAI, Palantir's stock has surged from an initial investment of $1,000 to nearly $17,400, showcasing its strong performance in the AI revolution and attracting significant investor interest, thereby fueling market enthusiasm.
- High Valuation Multiples: Palantir's price-to-sales and price-to-earnings ratios are at historically high levels within the software market, and while its revenue and profitability outpace many peers, the stark valuation disparity raises concerns about its future performance.
- Clear Competitive Advantage: Palantir's AI platform boasts a higher customer lifetime value due to its lack of direct competition, with analysts noting that its uniqueness allows the company to win and retain key clients, thereby enhancing the predictability of future revenue.
- Divergent Market Sentiment: Despite 40% of analysts rating Palantir as a
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