Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contract management, build and execute sourcing events, such as requests for proposals, and manage indirect spend; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; Workday Extend for customers and their developers to build custom applications. The company serves the professional and business services, financial services, healthcare, manufacturing, media, education, government, technology, media, retail, and hospitality industries. It sells its solutions through its direct sales organization. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.
as of April 2026
Are revenues and earnings expanding?
$16.46B in TTM revenue grew 109.4% YoY, reaching $2.54B last quarter. TTM EBITDA of $1.30B on operating income of $338.00M shows growth is flowing through. Net income of $1.20B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 13.3% is up 8.0% YoY — cost efficiency is improving. Net margin at 8.7%. ROE of 18.0% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 27.6x P/E, the stock trades in line with market averages — fairly valued. P/S of 2.0x and P/B of 5.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $16.09B in assets and $1.99B in long-term debt, the D/E of 0.3 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $616.00M. The FCF / Net Income ratio of 0.5x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $559.00M provide financial flexibility. Shares outstanding declined 4.3% YoY — buybacks are returning capital to shareholders.
Competitive analysis based on 49 quarters of fundamental data
Operating margins are positive at ~6.2% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~14.0% on average, adequate but below the threshold typically associated with wide moats.
Data-driven red flags and warnings across 49 quarters
Margins are stable or improving at ~8.0% — no sign of cost or pricing stress.
FCF covers net income by 3.1x on average — earnings are well-supported by cash generation.
D/E ratio is 0.3 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.2% — net buybacks are reducing shares outstanding and boosting per-share value.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~135.8% growth over the period. Strong demand durability.