Workday’s Quarterly Earnings Preview: What You Need to Know

Workday, Inc. (WDAY), headquartered in Pleasanton, California, is a cloud-based enterprise software company that provides human resources and financial management solutions. Its platform helps organizations manage payroll, workforce planning, recruitment, accounting, and business operations, increasingly leveraging artificial intelligence to automate processes and improve organizational efficiency. The company has a market capitalization of approximately $50.2 billion.

WDAY is set to report its Q3 earnings soon. Ahead of the release, analysts expect the company to report diluted EPS of $1.28, up 17.4% from $1.09 in the year-ago quarter. WDAY has surpassed Wall Street’s EPS estimates in three of the past four quarters, while missing on another quarter.

For fiscal 2027, analysts expect the company to report EPS of $5.32, up 15.4% from $4.61 in fiscal 2026. Moreover, its EPS is expected to increase by another 34.4% to $7.15 in fiscal 2028.

WDAY shares have declined 14% over the past 52 weeks, significantly underperforming the S&P 500 Index ($SPX), which returned 12.3%, and the State Street Technology Select Sector SPDR ETF (XLK), which gained 26.8% over the same period.

Workday shares rose 4.4% on Oct. 15 as falling Treasury yields helped fuel a broader rebound in software and technology stocks following an AI-driven sell-off. Lower yields supported valuations of growth-oriented software companies by making their future cash flows more attractive to investors.

Analysts remain somewhat bullish on WDAY, with the stock carrying a consensus “Moderate Buy” rating. Among the 42 analysts covering the stock, 17 recommend a “Strong Buy,” two rate it a “Moderate Buy,” 21 recommend a “Hold,” and two suggest a “Moderate Sell.” The average price target of $207.38 implies marginal upside from the current share price.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.