Workday (WDAY, $248.39) beats fiscal Q4 earnings expectations
Workday posted fiscal fourth-quarter 2022 earnings and revenue that both increased year-over-year.
For the quarter ended January 31, 2022, the HR managing cloud-based company’s non-GAAP net income rose to 78 cents per share from 73 cents per share in the year-ago quarter, and exceeded the Zacks Consensus Estimate by 7 cents.
Revenues rose to $1,376.1 million from $1,131.7 million in fourth-quarter fiscal 2021, and surpassed the consensus estimate of $1,364 million. Subscription services revenues (89.3% of total revenues) rose +22.2% year over year to $1,229.2 million on the back of an expanding customer base. Subscription revenue backlog in the quarter increased +26.9% from the year-ago quarter to $12.81 billion. Professional services’ revenues (10.7% of total revenues) rose +17.2% to $147 million.
In fiscal 2022, Workday had a net income of 12 cents per share, vs. a net loss of -$1.19 per share in fiscal 2021. Non-GAAP net income in fiscal 2022 came in at $1,038.7 million or $3.99 per share from $724.2 million or $2.93 per share in fiscal 2021.
The company’s revenues rose +19% year over year to $5,138.8 million In fiscal 2022, on the back of growth in subscription revenues (up +20%) of $4,546.3 million –thanks to higher customer contracts and solid customer renewals (with gross retention of more than 95%).
Workday expects its fiscal 2023 subscription services revenues to range between $5,530 million to $5,550 million. It projects non-GAAP operating margin to be 18.5%.
WDAY's RSI Indicator recovers from oversold territory
The RSI Indicator for WDAY moved out of oversold territory on June 20, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 34 similar instances when the indicator left oversold territory. In of the 34 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where WDAY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 320 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 Momentum Indicator moved below the 0 level on June 13, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on WDAY as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for WDAY turned negative on May 23, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
WDAY moved below its 50-day moving average on June 17, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WDAY crossed bearishly below the 50-day moving average on June 23, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 21 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 June 30, 2025. 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady 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 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 88, placing this stock better than average.
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 (8.905) is normal, around the industry mean (31.808). P/E Ratio (52.292) is within average values for comparable stocks, (163.969). Projected Growth (PEG Ratio) (2.403) is also within normal values, averaging (2.732). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (9.960) is also within normal values, averaging (61.972).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
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a provider of software based enterprise business solutions
Industry PackagedSoftware
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