Enterprise software company Workday (NASDAQ: WDAY) will be reporting results this Thursday after market hours. Here’s what investors should know.
Workday beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $2.24 billion, up 12.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.
Is Workday a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Workday’s revenue to grow 12.3% year on year to $2.34 billion, slowing from the 16.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.11 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Workday has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.9% on average.
Looking at Workday’s peers in the finance and hr software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Marqeta delivered year-on-year revenue growth of 20.1%, beating analysts’ expectations by 6.9%, and Workiva reported revenues up 21.2%, topping estimates by 3%. Marqeta traded up 19.9% following the results while Workiva was also up 32.2%.
Read our full analysis of Marqeta’s results here and Workiva’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the finance and hr software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.6% on average over the last month. Workday is down 1.5% during the same time and is heading into earnings with an average analyst price target of $293.69 (compared to the current share price of $230.17).
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