Core Insights - Workday is set to announce its earnings on May 22, 2025, with historical data indicating a 60% chance of a positive one-day return post-announcement, averaging 8.1% [1][6] - Consensus estimates for the upcoming quarter project earnings per share of $2.01 and revenues of $2.22 billion, compared to $1.74 EPS and $1.99 billion in the same quarter last year [2] - Workday's current market capitalization stands at $73 billion, with $8.4 billion in revenue, $499 million in operating profit, and $526 million in net income over the last twelve months [3] Historical Performance - Over the past five years, there have been 20 earnings data points for Workday, with 12 positive and 8 negative one-day returns, resulting in a 60% positive return rate [6] - The positive return rate increases to 67% when considering the last three years, with an average positive return of 8.1% and an average negative return of -4.9% [6] Trading Strategies - Traders can utilize historical patterns to inform pre-earnings positioning and post-earnings adjustments based on immediate market reactions and medium-term performance [5] - Analyzing correlations between short-term and medium-term returns can provide insights for trading strategies, particularly if the 1D and 5D returns exhibit strong correlation [4] Peer Performance - The performance of peers can influence Workday's post-earnings stock reaction, with historical data showing the relationship between Workday's stock performance and that of its peers [7]

Core Viewpoint - Intel's market cap is at risk of being surpassed by Dell and Workday due to Intel's declining performance and growth prospects [6][10][14] Intel - Intel's stock price has significantly dropped from its peak of $74.88 in 2000 to about $21 today, resulting in a market cap of $94.5 billion [2] - The company has experienced a net income decline for six consecutive years, paused buybacks for four years, and suspended its dividend at the end of 2024 [2][4] - Intel has fallen behind competitors like TSMC and AMD in chip manufacturing and has struggled to enter the mobile and AI markets [4] - Analysts project Intel's revenue will grow at a CAGR of only 2% from 2024 to 2027, with profitability expected to return by 2027, but the stock remains expensive at 23 times its projected earnings [5] Dell Technologies - Dell is a major player in the PC and server markets, generating 51% of its revenue from client solutions and 46% from infrastructure solutions [7] - The infrastructure segment is expected to benefit from the growth of the AI market, with Dell anticipating at least $15 billion in revenue from AI servers by fiscal 2026 [8] - Dell's market cap is currently $79.7 billion, with projected revenue and EPS growth rates of 6% and 15% respectively from fiscal 2025 to fiscal 2028 [9] - If Dell meets analysts' expectations, its stock could rise nearly 30% to $147 per share, potentially increasing its market cap to about $102 billion by 2027 [10] Workday - Workday has expanded from finance and HR services to include human capital management tools, achieving a CAGR of 27% in revenue from fiscal 2015 to fiscal 2025 [11] - The company serves over 11,000 customers, including 60% of the Fortune 500, and is well-positioned to navigate economic fluctuations [12] - Analysts expect Workday's revenue and EPS to grow at a CAGR of 13% and 41% respectively from fiscal 2025 to fiscal 2028 [13] - If Workday meets expectations, its stock price could increase by 85% to $506 per share, raising its market cap from $73 billion to $135 billion by 2027 [14]

Core Viewpoint - Workday, Inc. is expected to report strong first-quarter fiscal 2026 results, driven by solid demand for its solutions and AI integration across its portfolio [1][2]. Financial Performance - Subscription Services revenues are estimated at $2.05 billion, reflecting a 13% year-over-year growth [5]. - Professional Services revenues are projected at $165 million [5]. - The Zacks Consensus Estimate for total revenues is $2.22 billion, up from $1.99 billion in the same quarter last year [5]. - Adjusted earnings per share are expected to be $1.99, an increase from $1.74 reported in the prior year [5]. Product Innovations - Workday introduced the Workday Agent System of Record, enhancing AI management for enterprises [3]. - New features include AI-Powered Talent Rediscovery, Personalized Preboarding and Onboarding Experiences, Document Intelligence, and AI-Powered Accounts Payable, aimed at streamlining various business processes [3]. Client Engagement - Sovereign Network Group, a major U.K. housing association, has chosen Workday solutions to enhance operational efficiency and customer service, likely contributing positively to the company's fiscal first-quarter performance [4].

Core Viewpoint - Wall Street analysts predict that Workday will report quarterly earnings of $1.99 per share, reflecting a year-over-year increase of 14.4%, with revenues expected to reach $2.22 billion, an 11.3% increase compared to the previous year [1]. Earnings Projections - The consensus EPS estimate for the quarter has been revised downward by 0.1% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Estimates - Analysts project 'Revenues- Subscription services' to be $2.05 billion, indicating a year-over-year increase of 13% [4]. - 'Revenues- Professional services' are expected to be $165.09 million, suggesting a year-over-year decline of 5.7% [5]. - The 'Subscription Revenue Backlog' is forecasted to reach $25.32 billion, up from $20.68 billion reported in the same quarter last year [5]. Stock Performance - Workday shares have shown a return of 23.5% over the past month, outperforming the Zacks S&P 500 composite, which increased by 13.1% [6]. - With a Zacks Rank of 3 (Hold), Workday is expected to perform in line with the overall market in the near future [6].

Core Insights - Workday has introduced new Illuminate Agents aimed at enhancing hiring processes, improving frontline worker experiences, streamlining financial processes, and empowering employees to access information quickly [1][2][3] - The company emphasizes the importance of reshaping business operations to unlock real value from AI, leveraging its expertise in HR and finance to deliver measurable business outcomes [2][3] - Workday's Illuminate platform is built on a vast dataset, processing over 1 trillion transactions annually, which allows it to provide deep contextual understanding of business operations [6] Product Offerings - New Illuminate Agents include: - Contingent Sourcing Agent: Accelerates temporary hiring by identifying talent for contingent roles [4] - Contract Intelligence Agent: Enhances decision-making by reviewing contracts for risks and key dates [4] - Contract Negotiation Agent: Expedites negotiations by drafting contract language and recommending revisions [4] - Document Driven Accounting Agent: Automates billing and accounting entries by extracting data from documents [4] - Frontline Agent: Saves time for frontline workers by enabling absence reporting and identifying replacements [4] - Self-Service Agent: Provides instant answers to employee inquiries and assists with complex tasks [4] - Supplier Contracts Agent: Reviews supplier contracts to align procurement processes with obligations [4] Availability - Contract Intelligence Agent and Contract Negotiation Agent are now generally available, while the Self-Service Agent will be available by the end of 2025 [7] - Other agents, including the Contingent Sourcing Agent and Document Driven Accounting Agent, will be available to early adopters by the end of 2025, with general availability planned for early 2026 [7] Company Overview - Workday is an AI platform designed for managing people, money, and agents, serving over 11,000 organizations globally, including more than 60% of the Fortune 500 [8]

Group 1 - The analysis begins coverage on Workday (NASDAQ: WDAY) and aims to provide a comprehensive overview of the company's business model, financial performance, valuation, and risks [1] - Workday is set to report Q1 earnings on May 22, 2025, and the analysis will highlight what investors should be monitoring in this upcoming report [1]

Group 1: Core Insights - The transformative power of artificial intelligence (AI) is reshaping workplace dynamics, enhancing workflows, and promising higher productivity across industries [1] - Despite AI's capabilities, the importance of human skills, particularly the ability to establish connections, is increasingly recognized as a core driver of innovation and progress [1][2] - A significant portion of employees (54%) feel undervalued by their organizations, highlighting the need for companies to understand the benefits of interpersonal relationships [1] Group 2: Emotional Connection and AI - The demand for emotional connection is shifting the application of generative AI, with its primary use now being to provide emotional support rather than just generating creative content [4] - Research indicates that 94% of employees believe close connections with colleagues enhance their efficiency, and those with such connections are four times more likely to feel job satisfaction [6] Group 3: Importance of Human Skills - AI is changing work methods while simultaneously elevating the importance of uniquely human skills such as empathy, ethical decision-making, and conflict resolution [9] - As AI applications proliferate, 82% of employees recognize an increasing need for enhanced interpersonal connections [9] Group 4: Leadership and Human Connection - Effective leadership in the AI era requires creating environments that prioritize genuine emotional connections and the cultivation of human core skills [10] - Leaders should foster open dialogue, active listening, and respect for diverse viewpoints to enhance interpersonal relationships in AI-driven workplaces [10]

Core Viewpoint - The market anticipates Workday (WDAY) to report a year-over-year increase in earnings driven by higher revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - Workday is expected to post quarterly earnings of $1.99 per share, reflecting a year-over-year increase of +14.4% [3]. - Revenues are projected to reach $2.22 billion, which is an 11.3% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.39% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Workday is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.24% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Workday currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Workday exceeded the expected earnings of $1.75 per share by delivering $1.92, resulting in a surprise of +9.71% [12]. - Over the past four quarters, Workday has consistently beaten consensus EPS estimates [13]. Industry Comparison - Zoom Communications (ZM), another player in the Zacks Internet - Software industry, is expected to report earnings of $1.30 per share, indicating a year-over-year decline of -3.7% [17]. - Zoom's consensus EPS estimate has been revised down by 0.4% over the last 30 days, with a negative Earnings ESP of -1.68%, making it challenging to predict an earnings beat [18].

Core Insights - Workday, Inc. will have its CFO, Zane Rowe, present at the Jefferies Public Technology Conference on May 28, 2025 [1] - A live webcast of the event will be available on the Workday Investor Relations site, with a replay accessible for at least 90 days post-conference [1] Company Overview - Workday is an AI platform designed for managing people, money, and agents, aimed at enhancing customer operations [2] - The platform is utilized by over 11,000 organizations globally, including more than 60% of the Fortune 500 companies [2]

Market Capitalization Changes - Tesla's market capitalization increased by 6.75% to $1,025.4 billion [3] - TSMC's market capitalization rose by 5.93% to $969.7 billion [3] - Tencent's market capitalization grew by 4.66% to $609.8 billion [3] - Netflix's market capitalization decreased by 2.65% to $472.3 billion [3] - Oracle's market capitalization increased by 4.58% to $440.8 billion [3] Notable Performers - Shopify saw a significant increase of 13.7% in market capitalization, reaching $136.2 billion [4] - AppLovin experienced a remarkable rise of 89% to $1.177 billion [4] - AMD's market capitalization increased by 5.13% to $175.3 billion [5] - Uber's market capitalization rose by 6.39% to $184.2 billion [5] Decliners - Pinduoduo's market capitalization fell by 6.14% to $165.2 billion [4] - Xiaomi's market capitalization decreased by 2.11% to $163.4 billion [4] - Spotify's market capitalization declined by 4.23% to $127.3 billion [4] Other Companies of Interest - Adobe's market capitalization increased by 3.3% to $168.7 billion [4] - Qualcomm's market capitalization rose by 4.78% to $167.0 billion [4] - Intel's market capitalization increased by 3.55% to $96.7 billion [5] - Airbnb's market capitalization grew by 5.64% to $828 million [5]