Workday (WDAY) Beats Q1 Earnings and Revenue Estimates

Core Viewpoint - Workday reported quarterly earnings of $2.23 per share, exceeding the Zacks Consensus Estimate of $1.99 per share, and showing an increase from $1.74 per share a year ago, representing an earnings surprise of 12.06% [1][2] Financial Performance - Workday's revenues for the quarter ended April 2025 were $2.24 billion, surpassing the Zacks Consensus Estimate by 1.10%, and up from $1.99 billion year-over-year [2] - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] Stock Performance - Workday shares have increased approximately 4.1% since the beginning of the year, while the S&P 500 has declined by 0.6% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $2.02 for the coming quarter and $8.40 for the current fiscal year [7] - The estimate revisions trend for Workday is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Workday belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8] - Guidewire Software, another company in the same industry, is expected to report quarterly earnings of $0.46 per share, reflecting a year-over-year increase of 76.9% [9]