WDAY Earnings Prediction
The chart below shows how WDAY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WDAY sees a -2.26% change in stock price 10 days leading up to the earnings, and a +0.64% change 10 days following the report. On the earnings day itself, the stock moves by -0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
WDAY Key Earning Data
WDAY Earnings Analysis
Positive
Subscription Revenue Growth: Workday achieved 16% subscription revenue growth in Q4, demonstrating strong demand for its services.
Improved Operating Margin: The company reported a non-GAAP operating margin of 26%, reflecting improved efficiencies and cost discipline.
Q4 Revenue Performance: Workday's total revenue for Q4 was $2.21 billion, up 15%, indicating solid overall performance.
Customer Base Expansion: The company expanded its customer base significantly, welcoming new clients like Bayer and Henkel, and now serves over 11,000 customers globally.
Full Suite Adoption Growth: Workday's full suite offerings saw strong adoption, with over 30% of new wins being full suite deals, particularly in the SLED and healthcare sectors.
AI Agent Management Advantage: The launch of the Agent System of Record positions Workday uniquely in the market, allowing customers to manage AI agents effectively.
AI Integration in Offerings: AI solutions are increasingly integrated into Workday's offerings, with 30% of customer expansions involving AI SKUs, showcasing the company's innovation in this area.
International Growth Potential: Workday's international performance was strong, with notable wins in key markets like the U.K. and Germany, indicating global growth potential.
Strong Cash Position: The company ended the year with $8 billion in cash and marketable securities, providing a solid financial foundation for future investments.
Negative
Workforce Restructuring Announcement: - The company announced a restructuring that will reduce its workforce by approximately 8%, indicating potential challenges in managing operational costs and efficiency.
Restructuring Charge Impact: - GAAP operating income in Q4 was negatively impacted by a $75 million charge related to the restructuring, highlighting financial strain during this transition period.
Subscription Revenue Slowdown: - The guidance for FY '26 subscription revenue growth is expected to be only 14%, which is a slowdown compared to previous growth rates, suggesting potential market saturation or increased competition.
Dollar Strength Impact: - The anticipated impact of the strengthening U.S. dollar is expected to be a $20 million headwind, indicating external economic pressures that could affect revenue.
EMEA Growth Challenges: - Despite a strong performance in Q4, the company is facing macro headwinds in EMEA, which could hinder future growth in that region.
Restructuring Expense Impact: - The company expects to incur an additional restructuring expense of approximately $180 million in Q1 FY '26, which will further impact GAAP operating margins and reflects ongoing financial adjustments.
Professional Services Revenue Outlook: - The professional services revenue for FY '26 is expected to be approximately $700 million, which may indicate a reliance on partners for growth rather than organic expansion.
WDAY FAQs
How does WDAY typically perform around its earnings report dates?
WDAY's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -2.26% change leading up to the report and a +0.64% change in the 10 days following the release.
Is Workday Inc (WDAY) Q4 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
WDAY Earning Call Sentiment
Workday, Inc. (WDAY) Q4 2025 Earnings Call Transcript
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