Zacks Research Has Bearish Estimate for Workday Q2 Earnings

Workday, Inc. (NASDAQ:WDAY) – Research analysts at Zacks Research reduced their Q2 2026 EPS estimates for shares of Workday in a report issued on Thursday, January 30th. Zacks Research analyst R. Department now forecasts that the software maker will post earnings of $0.64 per share for the quarter, down from their previous estimate of $0.66. The consensus estimate for Workday’s current full-year earnings is $2.63 per share. Zacks Research also issued estimates for Workday’s Q2 2027 earnings at $1.06 EPS.

Workday (NASDAQ:WDAY) last released its quarterly earnings results on Tuesday, November 26th. The software maker reported $1.89 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.13. Workday had a net margin of 19.86% and a return on equity of 6.13%. The firm had revenue of $2.16 billion during the quarter, compared to the consensus estimate of $2.13 billion. During the same quarter in the prior year, the firm earned $0.47 EPS. The company’s revenue for the quarter was up 15.8% on a year-over-year basis.

WDAY has been the topic of a number of other research reports. Loop Capital decreased their price objective on Workday from $270.00 to $242.00 and set a “hold” rating on the stock in a report on Wednesday, November 27th. Guggenheim raised shares of Workday from a “sell” rating to a “neutral” rating in a research note on Monday, January 6th. Barclays dropped their price objective on shares of Workday from $314.00 to $305.00 and set an “overweight” rating for the company in a research note on Wednesday, November 27th. Wells Fargo & Company raised their target price on shares of Workday from $300.00 to $330.00 and gave the stock an “overweight” rating in a research note on Monday, December 9th. Finally, Citigroup dropped their price target on Workday from $287.00 to $270.00 and set a “neutral” rating for the company in a research report on Thursday, January 16th. Eight equities research analysts have rated the stock with a hold rating and twenty-one have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $292.25.

Workday Stock Performance

NASDAQ WDAY opened at $262.06 on Monday. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.05 and a quick ratio of 2.05. The stock’s 50 day simple moving average is $261.07 and its 200-day simple moving average is $248.97. The company has a market cap of $69.71 billion, a PE ratio of 43.46, a price-to-earnings-growth ratio of 4.79 and a beta of 1.34. Workday has a 1-year low of $199.81 and a 1-year high of $311.28.

Insiders Place Their Bets

In other Workday news, major shareholder David A. Duffield sold 56,000 shares of the business’s stock in a transaction that occurred on Monday, January 13th. The shares were sold at an average price of $246.42, for a total transaction of $13,799,520.00. Following the completion of the transaction, the insider now owns 60,000 shares in the company, valued at $14,785,200. The trade was a 48.28 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Mark S. Garfield sold 472 shares of Workday stock in a transaction on Monday, January 13th. The stock was sold at an average price of $248.24, for a total transaction of $117,169.28. Following the sale, the chief accounting officer now directly owns 35,408 shares of the company’s stock, valued at approximately $8,789,681.92. This trade represents a 1.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 438,819 shares of company stock worth $113,142,592 in the last ninety days. 20.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. increased its position in Workday by 23.7% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,063 shares of the software maker’s stock worth $1,132,000 after buying an additional 970 shares during the period. Cetera Investment Advisers grew its position in shares of Workday by 3.9% during the second quarter. Cetera Investment Advisers now owns 51,043 shares of the software maker’s stock worth $11,411,000 after acquiring an additional 1,911 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Workday in the 2nd quarter valued at $4,351,000. Handelsbanken Fonder AB raised its position in Workday by 2.2% in the 3rd quarter. Handelsbanken Fonder AB now owns 75,301 shares of the software maker’s stock valued at $18,404,000 after purchasing an additional 1,611 shares during the last quarter. Finally, GAMMA Investing LLC boosted its stake in Workday by 47.1% during the 3rd quarter. GAMMA Investing LLC now owns 1,021 shares of the software maker’s stock worth $250,000 after purchasing an additional 327 shares during the period. 89.81% of the stock is owned by hedge funds and other institutional investors.

About Workday

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.