Workday (WDAY)
Market Price (11/15/2025): $231.07 | Market Cap: $61.6 BilSector: Information Technology | Industry: Application Software
Workday (WDAY)
Market Price (11/15/2025): $231.07Market Cap: $61.6 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 29%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 27%, CFO LTM is 2.6 Bil, FCF LTM is 2.4 Bil | Weak multi-year price returns2Y Excs Rtn is -52%, 3Y Excs Rtn is -8.6% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 71x, P/EPrice/Earnings or Price/(Net Income) is 106x |
| Low stock price volatilityVol 12M is 35% | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.5% | |
| Megatrend and thematic driversMegatrends include Cloud Computing, Artificial Intelligence, Automation & Robotics, Future of Work, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 29%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 27%, CFO LTM is 2.6 Bil, FCF LTM is 2.4 Bil |
| Low stock price volatilityVol 12M is 35% |
| Megatrend and thematic driversMegatrends include Cloud Computing, Artificial Intelligence, Automation & Robotics, Future of Work, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -52%, 3Y Excs Rtn is -8.6% |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 71x, P/EPrice/Earnings or Price/(Net Income) is 106x |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.5% |
Market Valuation & Key Metrics
WDAY Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Here are five key points explaining Workday's (WDAY) stock movement of 0.6% between July 31, 2025, and November 15, 2025:
1. Workday reported mixed fiscal Q2 2026 earnings on August 21, 2025.
The company surpassed earnings per share (EPS) estimates but slightly missed revenue projections. Despite the revenue miss, Workday demonstrated robust subscription revenue growth of 14% and improved operating margins, along with an optimistic long-term growth outlook. The stock initially saw a dip in after-hours trading but later rebounded.
2. Workday announced the acquisition of AI company Sana for $1.1 billion.
This strategic acquisition, announced around Workday Rising 2025 in September and completed on November 4, 2025, is intended to enhance Workday's artificial intelligence capabilities and position it as the "front door" for workplace activities, connecting enterprise data across various platforms for a unified experience.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| WDAY Return | 46% | 14% | -39% | 65% | -7% | -13% | 36% |
| Peers Return | 59% | 10% | -24% | 2% | 13% | -12% | 34% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 109% |
Monthly Win Rates [3] | |||||||
| WDAY Win Rate | 58% | 42% | 42% | 75% | 58% | 60% | |
| Peers Win Rate | 55% | 45% | 32% | 43% | 48% | 42% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| WDAY Max Drawdown | -31% | -8% | -51% | -4% | -25% | -18% | |
| Peers Max Drawdown | -25% | -14% | -35% | -14% | -13% | -23% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: PAYX, FIS, WK, BL, BIYA. See WDAY Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 11/14/2025 (YTD)
How Low Can It Go
| Event | WDAY | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -55.9% | -25.4% |
| % Gain to Breakeven | 126.9% | 34.1% |
| Time to Breakeven | 462 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -42.9% | -33.9% |
| % Gain to Breakeven | 75.1% | 51.3% |
| Time to Breakeven | 161 days | 148 days |
| 2018 Correction | ||
| % Loss | -32.1% | -19.8% |
| % Gain to Breakeven | 47.3% | 24.7% |
| Time to Breakeven | 310 days | 120 days |
Compare to PAYX, FIS, WK, BL, BIYA
In The Past
Workday's stock fell -55.9% during the 2022 Inflation Shock from a high on 11/17/2021. A -55.9% loss requires a 126.9% gain to breakeven.
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Asset Allocation
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Latest Trefis Analyses
Trade Ideas
Select past ideas related to WDAY. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | ZBRA | Zebra Technologies | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -10.7% | -10.7% | -10.7% |
| 10312025 | ACN | Accenture | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -2.0% | -2.0% | -3.5% |
| 10312025 | ADBE | Adobe | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -2.7% | -2.7% | -3.9% |
| 10312025 | TXN | Texas Instruments | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -1.3% | -1.3% | -1.3% |
| 10242025 | MRVL | Marvell Technology | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.8% | 2.8% | 0.0% |
| 08312025 | WDAY | Workday | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.0% | 0.0% | -5.1% |
| 01312025 | WDAY | Workday | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -15.2% | -11.9% | -19.7% |
| 12312022 | WDAY | Workday | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 35.0% | 65.0% | -4.3% |
| 06302022 | WDAY | Workday | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 20.2% | 61.8% | -5.0% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | ZBRA | Zebra Technologies | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -10.7% | -10.7% | -10.7% |
| 10312025 | ACN | Accenture | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -2.0% | -2.0% | -3.5% |
| 10312025 | ADBE | Adobe | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -2.7% | -2.7% | -3.9% |
| 10312025 | TXN | Texas Instruments | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -1.3% | -1.3% | -1.3% |
| 10242025 | MRVL | Marvell Technology | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.8% | 2.8% | 0.0% |
| 08312025 | WDAY | Workday | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.0% | 0.0% | -5.1% |
| 01312025 | WDAY | Workday | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -15.2% | -11.9% | -19.7% |
| 12312022 | WDAY | Workday | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 35.0% | 65.0% | -4.3% |
| 06302022 | WDAY | Workday | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 20.2% | 61.8% | -5.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Workday
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 77.63 |
| Mkt Cap | 33.5 |
| Rev LTM | 5,572 |
| Op Inc LTM | 778 |
| FCF LTM | 1,709 |
| FCF 3Y Avg | 786 |
| CFO LTM | 1,901 |
| CFO 3Y Avg | 1,642 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.4% |
| Rev Chg 3Y Avg | 11.3% |
| Rev Chg Q | 10.2% |
| QoQ Delta Rev Chg LTM | 2.4% |
| Op Mgn LTM | 8.7% |
| Op Mgn 3Y Avg | 4.2% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 27.2% |
| CFO/Rev 3Y Avg | 25.3% |
| FCF/Rev LTM | 22.1% |
| FCF/Rev 3Y Avg | 20.7% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 33.5 |
| P/S | 6.1 |
| P/EBIT | 19.9 |
| P/E | 44.0 |
| P/CFO | 21.3 |
| Total Yield | 2.3% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 3.3% |
| D/E | 0.2 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -2.6% |
| 3M Rtn | -3.3% |
| 6M Rtn | -17.1% |
| 12M Rtn | -15.0% |
| 3Y Rtn | 8.7% |
| 1M Excs Rtn | -2.1% |
| 3M Excs Rtn | -8.3% |
| 6M Excs Rtn | -30.1% |
| 12M Excs Rtn | -27.1% |
| 3Y Excs Rtn | -67.2% |
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/21/2025 | -2.8% | 0.4% | 6.6% |
| 5/22/2025 | -12.5% | -9.0% | -12.1% |
| 2/5/2025 | 6.3% | 1.3% | -2.3% |
| 11/26/2024 | -6.2% | -0.5% | -1.5% |
| 8/22/2024 | 12.5% | 13.5% | 6.0% |
| 5/23/2024 | -15.3% | -19.0% | -16.7% |
| 2/26/2024 | -4.0% | -11.1% | -9.7% |
| 11/28/2023 | 11.0% | 12.8% | 16.3% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 11 | 13 |
| # Negative | 12 | 14 | 12 |
| Median Positive | 7.1% | 8.7% | 6.6% |
| Median Negative | -5.1% | -6.3% | -9.6% |
| Max Positive | 17.2% | 13.5% | 17.1% |
| Max Negative | -15.3% | -19.0% | -20.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 7312025 | 8222025 | 10-Q 7/31/2025 |
| 4302025 | 5232025 | 10-Q 4/30/2025 |
| 1312025 | 3112025 | 10-K 1/31/2025 |
| 10312024 | 12052024 | 10-Q 10/31/2024 |
| 7312024 | 8282024 | 10-Q 7/31/2024 |
| 4302024 | 5292024 | 10-Q 4/30/2024 |
| 1312024 | 3082024 | 10-K 1/31/2024 |
| 10312023 | 11282023 | 10-Q 10/31/2023 |
| 7312023 | 8242023 | 10-Q 7/31/2023 |
| 4302023 | 5252023 | 10-Q 4/30/2023 |
| 1312023 | 2272023 | 10-K 1/31/2023 |
| 10312022 | 11292022 | 10-Q 10/31/2022 |
| 7312022 | 8252022 | 10-Q 7/31/2022 |
| 4302022 | 5262022 | 10-Q 4/30/2022 |
| 1312022 | 2282022 | 10-K 1/31/2022 |
| 10312021 | 11182021 | 10-Q 10/31/2021 |
External Quote Links
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