Workday (WDAY) Increases Despite Market Slip: Here's What You Need to Know

The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company is slated to reveal its earnings on August 27, 2026. The company's upcoming EPS is projected at $2.63, signifying a 19.00% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.63 billion, indicating a 12.18% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.81 per share and revenue of $10.66 billion. These totals would mark changes of +17.12% and +15.46%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.57% increase. At present, Workday boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 16.62 right now. This signifies a discount in comparison to the average Forward P/E of 22.13 for its industry.

It's also important to note that WDAY currently trades at a PEG ratio of 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.21 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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