--- canonical_url: https://www.stockexpertai.com/earnings/wday last_updated: 2026-05-09T11:21:33.514Z --- # Workday, Inc. (WDAY) Q4 FY2026 Earnings Preview > **[stale-preview-note]** Note: this preview was published before the 2026-05-21 earnings report. Results have since been released — verify against the latest filings. > This content was automatically generated with FMP live data + Q2 FY2026 earnings call transcript. Generated: 2026-05-09T11:21:32.938Z. Educational tool, not investment advice. --- ## Quick Summary | Field | Value | Source | |---|---|---| | Price | $127.83 (▼ -2.33%) | fmp:quote | | Market Cap | $33.9B | fmp:profile | | 52w range | $110.36 – $276.00 | fmp:quote | | Earnings | Thu 21 May | fmp:earnings-history | | EPS estimate | $2.49 (+12% YoY) | fmp:earnings-estimate | | Revenue estimate | $2.5B | fmp:earnings-estimate | | Beat streak | 8/4 | fmp:earnings-history | | Rating | B (overall 3/5) | fmp:ratings | | Analyst median target | $195 (+52.5% upside) | fmp:price-target-consensus | | MoonshotScore | 56/100 | derived | | Council | 3/6 bullish | derived | | Munger verdict | Undervalued | derived | ## Workday, Inc. — Q4 FY2026 Expectations Q4 consensus: revenue $2.5B^{[FMP est]}, EPS $2.49^{[FMP est]}. 8 consecutive quarters of beat^{[FMP earnings]}. ## Quick Take **Score:** B · **Stance:** BUY · **Council:** 3/6 · **Moonshot:** 56 = MoonshotScore 56^{[9-pillar formula]} + Council 3/6^{[6-lens rule]}. Form 4: 0 transactions^{[FMP Form 4]}. ## Watchlist (6 metrics) ### 1. Fy26 Subscription Revenue Guidance Workday is raising its FY '26 subscription revenue guidance to $8.815 billion, growth of 14%, incorporating the acquisition of Paradox. > "Following our first half momentum and incorporating the acquisition of Paradox, which we expect to close later in Q3, we're increasing our FY '26 subscription revenue guidance to $8.815 billion, growth of 14%." > — Zane C. Rowe, CFO, Expectation / Guide · Q2 FY2026 ### 2. Crpo Growth Q3 Guidance Workday expects cRPO to increase between 15% and 16% in Q3. This does not include the impact of the Paradox acquisition. > "We expect cRPO to increase between 15% and 16% in Q3. This does not include the impact of the Paradox acquisition." > — Zane C. Rowe, CFO, Expectation / Guide · Q2 FY2026 ### 3. Q3 Subscription Revenue Guidance Workday expects Q3 FY '26 subscription revenue to be approximately $2.235 billion, also growth of 14%. > "We expect Q3 FY '26 subscription revenue to be approximately $2.235 billion, also growth of 14%." > — Zane C. Rowe, CFO, Expectation / Guide · Q2 FY2026 ### 4. Fy26 Operating Cash Flow Outlook Workday is increasing its FY '26 operating cash flow outlook to $2.85 billion, driven by the timing of cash tax payments as well as our operating performance for the year. > "We're increasing our FY '26 operating cash flow outlook to $2.85 billion, driven by the timing of cash tax payments as well as our operating performance for the year." > — Zane C. Rowe, CFO, Expectation / Guide · Q2 FY2026 ### 5. Fy26 Operating Margin Guidance Workday is increasing its FY '26 non-GAAP operating margin to approximately 29%, reflecting ongoing efficiencies we are driving across the business. > "We're increasing our FY '26 non-GAAP operating margin to approximately 29%, reflecting ongoing efficiencies we are driving across the business." > — Zane C. Rowe, CFO, Expectation / Guide · Q2 FY2026 ### 6. Q3 Operating Margin Guidance Workday expects non-GAAP operating margin of 28% for Q3 FY '26. > "For Q3, we expect non-GAAP operating margin of 28%." > — Zane C. Rowe, CFO, Expectation / Guide · Q2 FY2026 ## MoonshotScore Pillars | Pillar | Score | Level | Evidence | |---|---|---|---| | Revenue Growth | 7.0 | strong | Q4 vs Q1: healthy growth (+13.0%) | | Gross Margin | 8.0 | strong | Q4: very high margin (75.9%, software/cloud territory) | | Operating Leverage | 1.0 | weak | op margin average (12.0%) | | Cash Runway | 10.0 | strong | FCF very strong ($1.2B, 20.3× CapEx) | | R&D Intensity | 3.0 | weak | very high R&D (28.1%, margin pressure risk) | | Price Momentum | 4.0 | medium | RSI 51.7 balanced, 50d below | | News Sentiment | 6.0 | medium | majority buy (61%) | **Formula:** sum(pillar.score) / (count * 10) * 100. Each pillar deterministic from FMP. Source maps in pillar.formula. ## Council (7-Lens) | Name | Stance | Context | |---|---|---| | Ray Dalio | bull | macro · target upside +52.5% | | Ken Griffin | bear | flow · 50d MA below | | Jim Simons | neutral | quant · RSI 52 | | Klarman | bull | value · target upside +52.5% | | Buffett | neutral | quality · ROE score 3/5 | | Munger | bull | valuation · target upside +52.5% | **Formula:** Each lens uses deterministic rule on bundle data. Logged in member.contextTr. ## Munger Lens - **Verdict:** Undervalued - **Financial Health:** Moderate - **Margin of Safety:** Strong - **Interest Coverage:** Adequate - **ROIC vs WACC:** Tight **Formula:** verdict=upside>25?Undervalued:>0?Fairly Valued:Overvalued. Each lens deterministic from FMP ratings + priceTarget. ## Technical Levels - **RSI(14):** 51.7 — dengeli — yön sinyali zayıf - **50d MA:** $129 — hisse %1.1 altında — kısa vadeli direnç - **200d MA:** $193 — hisse %33.8 altında — uzun vadeli baskı - **Volume (10d):** -6% ## Past Performance (4 Quarters) | Quarter | EPS Actual | EPS Estimate | Result | Reaction | |---|---|---|---|---| | Q1 FY26 | $2.23 | $2.01 | BEAT | -12.5% | | Q2 FY26 | $2.21 | $2.11 | BEAT | -2.8% | | Q3 FY26 | $2.32 | $2.17 | BEAT | -7.9% | | Q4 FY26 | $2.47 | $2.32 | +6.5% EPS | +2.2% | Q2 (August 21, 2025): EPS $2.47 vs $2.32 est^[FMP], +6.5% beat. D+1 movement: +2.2%^{[FMP D+1]}. Decline despite beat — market reacted to guidance, not numbers. ## 3 Scenarios ### Scenario A · Beat **Q4 EPS > $2.49 + CapEx discipline** Threshold: EPS > $2.49^{[FMP est]}. Target: Break above median target $195^{[FMP target]}; high target $298^[FMP] upper bound. ### Scenario B · In-Line **EPS ≈ $2.49 + CapEx < $60.0M** Threshold: EPS ≈ $2.49^{[FMP est]}, Q4 CapEx < $60.0M^[FMP]. Target: Consolidation in the band between current $128^[FMP] and median $195^[FMP]. ### Scenario C · Miss **EPS < $2.42 or CapEx ≥ $60.0M** Threshold: EPS < $2.42^{[FMP est×0.97]}. Target: Current $128 below SMA200 $193^[FMP], if rejection continues, $164^[derived] support activates. ## Risk Notes ### Primary segment below threshold Q2: EPS $2.47 vs $2.32 beat^[FMP], stock +2.2% D+1^[FMP]. ### Backlog concentration No RPO/backlog concentration disclosed in Q2 earnings call. ### Insider trading Form 4 data is marked in the table — this page does not generate assumptions for this stock. | Executive | Action | Amount | Date | |---|---|---|---| **Net:** — (0 transactions · 0 sells · 0 buys) · Q4 FY26 ### CapEx shock Q2 CapEx $60.0M^{[FMP cashflow]}. Q2 op margin 12.0%^{[FMP op margin]} — this level in Q4 is sensitive to CapEx revision risk. ## Wall Street Consensus - **Median target:** $195 (+52.5% upside vs current $128) - **High / Low:** $298 / $125 - **Buy / Hold / Sell:** 25 / 16 / 0 - **Analyst count:** 19 (last quarter), 140 all-time ## Additional Transcript Insights ### 1. fy26_subscription_revenue_guidance **Claim:** Workday is raising its FY '26 subscription revenue guidance to $8.815 billion, growth of 14%, incorporating the acquisition of Paradox. **Evidence (transcript):** "Following our first half momentum and incorporating the acquisition of Paradox, which we expect to close later in Q3, we're increasing our FY '26 subscription revenue guidance to $8.815 billion, growth of 14%." **Numbers:** 8.815, 14% ### 2. q3_subscription_revenue_guidance **Claim:** Workday expects Q3 FY '26 subscription revenue to be approximately $2.235 billion, also growth of 14%. **Evidence (transcript):** "We expect Q3 FY '26 subscription revenue to be approximately $2.235 billion, also growth of 14%." **Numbers:** 2.235, 14% ### 3. crpo_growth_q3_guidance **Claim:** Workday expects cRPO to increase between 15% and 16% in Q3. This does not include the impact of the Paradox acquisition. **Evidence (transcript):** "We expect cRPO to increase between 15% and 16% in Q3. This does not include the impact of the Paradox acquisition." **Numbers:** 15%, 16% ### 4. fy26_operating_margin_guidance **Claim:** Workday is increasing its FY '26 non-GAAP operating margin to approximately 29%, reflecting ongoing efficiencies we are driving across the business. **Evidence (transcript):** "We're increasing our FY '26 non-GAAP operating margin to approximately 29%, reflecting ongoing efficiencies we are driving across the business." **Numbers:** 29% ### 5. q3_operating_margin_guidance **Claim:** Workday expects non-GAAP operating margin of 28% for Q3 FY '26. **Evidence (transcript):** "For Q3, we expect non-GAAP operating margin of 28%." **Numbers:** 28% ### 6. fy26_operating_cash_flow_outlook **Claim:** Workday is increasing its FY '26 operating cash flow outlook to $2.85 billion, driven by the timing of cash tax payments as well as our operating performance for the year. **Evidence (transcript):** "We're increasing our FY '26 operating cash flow outlook to $2.85 billion, driven by the timing of cash tax payments as well as our operating performance for the year." **Numbers:** 2.85 --- *Data source: FMP (live query, 2026-05-09), Q2 FY2026 earnings call transcript (Translated to EN with Gemini 2.0 Flash). Educational tool, not investment advice.*