Financial Outlook - Workday expects its fiscal 2025 fourth quarter and full-year financial results to be in-line with or above its previous guidance, except for GAAP operating margin, which is projected to be 22 to 23 percentage points lower than non-GAAP for Q4 and 21 percentage points lower for the full year [5]. - Workday's financial outlook for the fourth quarter and fiscal year ending January 31, 2025, includes forward-looking statements that are subject to risks and uncertainties [13]. - Workday's actual results may differ materially from its forward-looking statements due to various risks, including potential higher costs associated with the restructuring plan [13]. Restructuring Plan - The company announced a restructuring plan that will eliminate approximately 1,750 positions, representing 8.5% of its current workforce, while continuing to hire in key strategic areas [7]. - Workday estimates it will incur charges of approximately $230 million to $270 million related to the restructuring plan, with $60 million to $70 million expected to be recognized in Q4 of fiscal 2025 [8]. - The restructuring plan includes approximately $145 million to $175 million in future cash expenditures for severance and employee benefits, and $50 million to $60 million in non-cash charges for stock-based compensation [8]. - The actions associated with the restructuring plan are expected to be substantially complete by the second quarter of fiscal 2026 [9]. - The company plans to exit certain owned office space as part of the restructuring efforts [7]. - Workday's restructuring plan aims to prioritize investments and focus on durable growth [7]. - The company will recognize impairment charges related to office space in the first quarter of fiscal 2026 [11].

Financial Performance - Total revenues for fiscal Q4 2025 reached $2.211 billion, marking a 15.0% increase year-over-year [1][6] - Subscription revenues for the same period were $2.040 billion, up 15.9% from the previous year [1][6] - For the full fiscal year 2025, total revenues amounted to $8.446 billion, reflecting a 16.4% year-over-year growth [1][6] - Subscription revenues for fiscal year 2025 were $7.718 billion, an increase of 16.9% compared to fiscal 2024 [1][6] Operating Metrics - Operating cash flows for fiscal year 2025 were $2.461 billion, a 14.5% increase from the prior year [1][6] - Non-GAAP operating income for Q4 2025 was $584 million, representing 26.4% of revenues, compared to 24.0% in the same period last year [6][21] - The company reported diluted net income per share of $0.35 for Q4 2025, down from $4.42 in Q4 2024, impacted by restructuring expenses [6][21] Future Guidance - The company anticipates subscription revenue of $8.800 billion for fiscal 2026, indicating a growth of 14% [5][15] - Non-GAAP operating margin for fiscal 2026 is expected to be approximately 28.0% [5][15] Strategic Developments - Workday announced a restructuring plan aimed at prioritizing investments and achieving durable growth, which is expected to reduce the workforce by approximately 8% [18][19] - The company repurchased approximately 2.9 million shares of Class A common stock for $700 million as part of its share repurchase program [6][19] Market Position - Workday is utilized by over 11,000 organizations globally, including more than 60% of the Fortune 500 [11][15] - The company welcomed new core customers and expanded existing relationships, indicating strong market demand [15]

Core Insights - Workday has appointed Gerrit Kazmaier as the new president of product and technology, succeeding Sayan Chakraborty, who is retiring after a decade of leadership [1][3] - Kazmaier has extensive experience in enterprise software, previously leading the data analytics and business intelligence division at Google Cloud and holding various leadership roles at SAP for nearly 11 years [2][3] - The transition in leadership is expected to enhance Workday's innovation strategy, particularly in AI and cloud transformation, as Kazmaier aims to redefine HR and finance through AI [3][4] Company Overview - Workday is an AI platform designed to help organizations manage their people and financial resources, utilized by over 11,000 organizations globally, including more than 60% of the Fortune 500 [4]

Core Insights - Workday, Inc. is set to release its fourth-quarter financial results on February 25, 2025, with expected earnings of $1.78 per share, an increase from $1.57 per share in the same quarter last year [1] - The company projects quarterly revenue of $2.18 billion, up from $1.92 billion a year earlier [1] - On February 5, 2025, Workday announced an 8.5% workforce reduction to focus more on AI initiatives [1] Stock Performance - Workday shares increased by 2.1%, closing at $261.81 on Monday [2] Analyst Ratings - Loop Capital analyst Yun Kim maintained a Hold rating and raised the price target from $242 to $260 [3] - Morgan Stanley analyst Keith Weiss downgraded the stock from Overweight to Equal-Weight, cutting the price target from $330 to $275 [3] - Needham analyst Scott Berg reiterated a Buy rating with a price target of $300 [3] - Goldman Sachs analyst Kash Rangan maintained a Buy rating and increased the price target from $300 to $310 [3] - Citigroup analyst Steven Enders maintained a Neutral rating and reduced the price target from $287 to $270 [3]

Core Viewpoint - Workday, Inc. is expected to report strong year-over-year revenue growth driven by customer wins and strategic expansions, despite a negative Earnings ESP indicating uncertainty about an earnings beat [1][2][9]. Group 1: Financial Performance - Workday is set to release its fourth-quarter fiscal 2025 results on February 25, with an average earnings surprise of 9.28% over the last four quarters and a 9.88% surprise in the last reported quarter [1]. - The Zacks Consensus Estimate for revenues is pegged at $2.18 billion, reflecting a 13.54% increase from the previous year's $1.92 billion [7]. - Subscription Services revenues are estimated at $2 billion, indicating a 15% year-over-year growth, while Professional Services revenues are estimated at $154.5 million [6]. Group 2: Strategic Initiatives - Workday introduced the Workday Agent System of Record, a centralized solution for managing AI agents, which is expected to gain traction across various industries [3]. - A partnership with Nayya aims to provide AI-driven health and wealth benefits, enhancing Workday's exposure to the employee benefits market [4]. - The deployment of Workday's Human Capital Management and Financial Management solutions at Johns Hopkins University is expected to positively impact earnings through improved HR and finance processes [5]. Group 3: Market Position and Estimates - Workday's current Zacks Rank is 3, indicating a hold position, with an Earnings ESP of -7.23%, suggesting a lower likelihood of an earnings beat [8][9]. - The company's focus on innovations, AI integration, and international expansion are seen as positive factors contributing to revenue growth [2].

Group 1 - Workday, Inc. will have its CEO, Carl Eschenbach, present at the Morgan Stanley Technology, Media & Telecom Conference on March 4, 2025 [1] - The presentation will be available for replay on the Workday Investor Relations site for at least 90 days after the conference [2] - Workday is an AI platform that assists organizations in managing their people and financial resources, utilized by over 10,500 organizations globally, including more than 60% of the Fortune 500 [3]

Company Performance - Workday (WDAY) closed at $261.63, with a +0.2% change from the previous day, outperforming the S&P 500, which fell by 0.43% [1] - Over the past month, Workday's shares have increased by 3.01%, surpassing the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6% [1] Upcoming Earnings - Workday's earnings report is anticipated on February 25, 2025, with an expected EPS of $1.75, reflecting an 11.46% increase from the same quarter last year [2] - Revenue is forecasted to be $2.18 billion, indicating a 13.41% rise compared to the year-ago quarter [2] Analyst Projections - Recent shifts in analyst projections for Workday should be monitored, as they often indicate short-term business trends and analysts' confidence in the company's performance [3] Zacks Rank and Valuation - Workday currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate having decreased by 0.24% in the past month [5] - The company has a Forward P/E ratio of 31.47, which is higher than the industry's average Forward P/E of 30.14 [5] PEG Ratio and Industry Ranking - Workday has a PEG ratio of 1.5, compared to the Internet-Software industry's average PEG ratio of 2.23 [6] - The Internet-Software industry is part of the Computer and Technology sector, which has a Zacks Industry Rank of 85, placing it in the top 34% of over 250 industries [6][7]

In its upcoming report, Workday (WDAY) is predicted by Wall Street analysts to post quarterly earnings of $1.75 per share, reflecting an increase of 11.5% compared to the same period last year. Revenues are forecasted to be $2.18 billion, representing a year-over-year increase of 13.4%.Over the last 30 days, there has been a downward revision of 0.5% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial ...

Workday, Inc. (WDAY) is set to introduce the Workday Agent System of Record, powered by Workday Illuminate, which offers a centralized system for managing enterprises’ entire fleet of AI agents. The solution brings numerous benefits for enterprises looking to streamline the use of AI across their operations and unlock the full potential of AI agents.The solution offers real-time operational visibility that helps organizations to track and monitor AI agent’s activity, expenses and employment policies. This a ...

New Capabilities Powered by Workday Illuminate™ Will Provide a Centralized System for Managing an Organization's Entire Fleet of AI Agents, From Workday and Third Parties Alike Workday is Leveraging Its 20 Years of Leadership in Human Capital Management to Empower Organizations to Thrive in the World of Agentic AI and Manage the Changing Workforce Workday Announces New Role-Based Illuminate Agents for Payroll, Contracts, Financial Auditing, and Policy Companies Will be Able to Discover and Deploy AI Agents ...