Workday (WDAY, $177.28) beats fiscal Q2 estimates
Workday’s second quarter earnings edged past analysts’ expectations, while the company boosted its FY 2020 subscription revenue outlook.
The cloud-based financial management and human capital management software vendor reported a non-GAAP net earnings per diluted share of 44 cents, which is higher than the Street estimates of 35 cents. The EPS is also higher than the year-ago quarter’s 31 cents.
Revenue surged +32% from the prior year’s quarter to $887.8 million, also surpassing analysts’ expectation of $872.31 million.
The company’s subscription revenue for the quarter was $757.2 million, marking a +33.9% increase from the same period last year.
Some of the new customers that Workday added In the second quarter, included The Gap, Stanley Black & Decker, and Rockwell Automation in North America, and Stores Limited in Europe, and Buntings Group Limited in the Asia Pacific-Japan region.
Looking ahead, Workday projects fiscal full-year 2020 subscription revenue to range between $3.06 billion and $3.07 billion. For the third quarter, the company’s forecast for subscription revenue is between $783 million and $785 million.
WDAY's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for WDAY turned positive on February 26, 2026. Looking at past instances where WDAY's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WDAY's RSI Indicator exited the oversold zone, of 38 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 03, 2026. You may want to consider a long position or call options on WDAY as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WDAY advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
WDAY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WDAY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for WDAY entered a downward trend on March 04, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.840) is normal, around the industry mean (10.799). P/E Ratio (55.448) is within average values for comparable stocks, (73.021). Projected Growth (PEG Ratio) (0.553) is also within normal values, averaging (1.908). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. P/S Ratio (4.031) is also within normal values, averaging (53.477).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. WDAY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WDAY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 96, placing this stock worse than average.
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General Information
a provider of software based enterprise business solutions
Industry PackagedSoftware
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