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 saw its Stochastic Oscillator peaks and leaves the overbought zone
The Stochastic Oscillator for WDAY moved out of overbought territory on August 14, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 59 similar instances where the indicator exited the overbought zone. In of the 59 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for WDAY moved out of overbought territory on August 17, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
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 .
WDAY broke above its upper Bollinger Band on August 13, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 27, 2026. You may want to consider a long position or call options on WDAY as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WDAY just turned positive on July 28, 2026. Looking at past instances where WDAY's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
WDAY moved above its 50-day moving average on July 24, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WDAY advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 170 cases where WDAY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WDAY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 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 (7.358) is normal, around the industry mean (28.672). P/E Ratio (62.040) is within average values for comparable stocks, (79.190). Projected Growth (PEG Ratio) (0.783) is also within normal values, averaging (1.753). Dividend Yield (0.000) settles around the average of (0.046) among similar stocks. P/S Ratio (5.339) is also within normal values, averaging (70.832).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 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 94, 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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