Fundamental analysis · SEC EDGAR · TTM through 30/04/2026

Fundamental analysis of Workday, Inc.

WDAY · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

80

out of 100

Workday, Inc. grows profitably: it increases revenue at double digits (17% a year) without giving up profitability (net margin 8.6%). On fundamental quality it scores 80 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its profitability (net margin 8.6%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Workday sells cloud software for managing people and money: payroll, HR and accounting for large companies. Multi-year subscriptions with very high retention: switching payroll systems is open-heart surgery.

What will shape its future

  • Corporate software spending: big contracts stretch out when the economy wobbles.
  • Its expansion into finance (beyond HR), the half of the market it's missing.
  • AI in its product and pricing pressure from rivals like SAP and Oracle.

Breakdown by area

I.Growth
95

EPS growth: 116.9% · Revenue growth: 17%

II.Profitability
63

Net margin: 8.6% · ROE: 12.7% · ROIC: 7.5%

III.Financial health
83

Net debt/EBITDA: 1.94x · FCF: 30.2%

Source: SEC EDGAR · TTM through 30/04/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 34%
ROEbeats 38%
Growthbeats 61%
Cash generationbeats 75%
Less debtbeats 26%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Workday, Inc. strengths

  • Growing earnings per share (116.9% annualized).
  • Excellent free-cash-flow generation (FCF margin of 30.2%): profit turns into real cash.
  • Revenue growing (17% annualized).
  • It has turned profitable after years of losses.

Workday, Inc. risks and weaknesses

  • Its net debt has grown over the period.

Workday, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20214,318-282411
20225,13929306
20236,216-3671,2931,090
20247,2591,3811,917968
20258,4465262,1921,441
20269,5526932,7771,486

Between 2021 and 2026, revenue went from $4,318M to $9,552M (+121%) and net income went from -$282M to $693M (+345%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended April 30, 2026, versus the quarter ended April 30, 2025 (SEC filings):

  • Revenue+13.5%
  • Net income+226.5%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Workday, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Workday, Inc. a good company to invest in?

In terms of business quality, Workday, Inc. scores 80 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Workday, Inc. a profitable company?

Workday, Inc. is profitable, with a net margin of 8.6%, though a thin one.

Does Workday, Inc. have a lot of debt?

A moderate level: its net debt is 1.94 times its EBITDA.

Is Workday, Inc. growing?

Its revenue has grown 17% annualized in recent years and its earnings per share 116.9%, and without interruption since 2021.

Does Workday, Inc. generate cash?

Yes. It converts about 30.2% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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