Workday Profitability Analysis
| WDAY Stock | USD 127.83 -3.05 -2.33% |
Net Income | First Reported 2010-10-31 | Previous Quarter 252 million | Current Value 145 million | Quarterly Volatility 180.43 million |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 51.00% | 75.70% |
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Profitability metrics for Workday reflect a business with a solid margin structure, converting a meaningful share of revenue into earnings. Gross margin of 51.0% narrows sharply to a net margin of 7.62%, indicating that overhead, financing, or non-operating costs consume a large share of gross profit. Return on equity of 9.98% alongside return on assets of 4.03% reflects how efficiently Workday's capital and asset base are converting into earnings. Figures reflect Workday's last reported annual data.
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Workday's Revenue Mix by Segment
Workday has a market cap of 32.68 billion, an operating margin of 12.05% on a trailing twelve-month basis, compared to 11.0% in the last reported annual period, current ratio of 1.61. Allocation models determine the relative weighting of each position in the portfolio. Broader economic conditions can influence Workday's company valuation - related indicators include signals in nation.For information on how to trade Workday Stock refer to our How to Invest in Workday guide.Analyst consensus on Workday's EPS captures the range of professional forecasts and their trajectory over time. An operating margin of 11.0% frames the cost structure behind Workday's reported EPS. For Workday, consensus EPS estimates are generally based on EPS before non-recurring items. They can include expenses related to employee stock options.
Macro event markers
Revenue Breakdown by Earning Segment for Workday Summary
Workday Inc EPS consensus generally reflects earnings before non-recurring adjustments. The relationship between Workday's revenue guidance and EPS estimates shows how top-line assumptions flow into earnings projections.
Quarterly Earnings Growth 62.9% | Earnings Share 2.59 | Revenue Per Share | Quarterly Revenue Growth 14.5% | Return On Assets |
Workday's market capitalization and book value each provide useful but distinct information about the business. Workday's market capitalization is 32.68 billion. The 4.24 P/B ratio shows Workday carries a substantial premium over its balance-sheet equity. Enterprise value (TTM) stands at 31.51 billion. Intrinsic value for Workday synthesizes operating data into a single estimate that complements price and book value.
Value and price for Workday are related but not identical, and they can diverge across cycles. The actual Workday transaction price is determined by real-time order flow on the exchange.
Workday Return On Asset TTM vs. Return On Equity TTM Fundamental Analysis
ROE stood at 0.1 as of December 31, 2025. Related reported metric: Return On Asset TTM at 4.03% as of December 31, 2025.
Workday Return On Asset TTM vs. Return On Equity TTM
Workday's Return on Equity of 9.98% suggests limited efficiency in deploying equity capital. This may reflect the capital-intensive nature of the business, competitive pressure compressing margins, or a period of elevated investment that has not yet translated into proportional earnings.
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| = | 0.1 |
Workday's Return on Assets of 4.03% falls within a moderate range, consistent with many established businesses. This level of asset productivity is typical for companies that maintain substantial physical or financial assets as part of their operating model.
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| = | 0.04 |
The relationship between Workday's ROE and ROA shows moderate leverage in the capital structure. Debt contributes to amplifying equity returns, but not to a degree that suggests excessive reliance on borrowed capital.
Workday Return On Asset TTM Comparison
Workday is currently under evaluation in return on asset ttm among leading competitors.
Estimated Months Earnings per Share
This chart shows the estimate series used for upcoming reporting periods.
Detailed Analysis of Earnings Estimates
Latest Earning Estimates and Surprises
The table below lists reported EPS, estimated EPS, and the reported surprise for each available quarter.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2026-02-24 | 2026-01-31 | 2.32 | 2.47 | 0.15 | 6 | ||
2025-11-25 | 2025-10-31 | 2.17 | 2.32 | 0.15 | 6 | ||
2025-08-21 | 2025-07-31 | 0.74 | 0.84 | 0.1 | 13 | ||
2025-05-22 | 2025-04-30 | 0.15 | 0.25 | 0.1 | 66 | ||
2025-02-25 | 2025-01-31 | 1.78 | 1.92 | 0.14 | 7 | ||
2024-11-26 | 2024-10-31 | 0.54 | 0.72 | 0.18 | 33 | ||
2024-08-22 | 2024-07-31 | 1.65 | 1.75 | 0.1 | 6 |