Workday(US:WDAY) ZACKS·2026-02-06 15:01Core Viewpoint - Workday's stock has underperformed recently, with a return of -24.3% over the past month compared to the S&P 500's -1.5% and the Zacks Internet - Software industry's -11.1% [1] Earnings Estimates Revisions - Workday is expected to post earnings of $2.30 per share for the current quarter, reflecting a year-over-year increase of +19.8% [4] - The consensus earnings estimate for the current fiscal year is $9.07, indicating a year-over-year change of +24.3%, with a slight increase of +0.2% over the last 30 days [4] - For the next fiscal year, the consensus estimate is $10.57, representing a +16.5% change from the previous year, with a +0.1% adjustment in the last month [5] - The Zacks Rank for Workday is 2 (Buy), indicating a positive outlook based on earnings estimate revisions [6] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $2.52 billion, showing a year-over-year increase of +14.1% [10] - For the current fiscal year, the revenue estimate is $9.54 billion (+13% year-over-year), and for the next fiscal year, it is $10.7 billion (+12.1% year-over-year) [10] Last Reported Results and Surprise History - Workday reported revenues of $2.43 billion in the last quarter, a +12.6% increase year-over-year, with an EPS of $2.32 compared to $1.89 a year ago [11] - The company exceeded the Zacks Consensus Estimate for revenues by +0.7% and for EPS by +8.92% [11] - Workday has consistently beaten consensus EPS and revenue estimates in the last four quarters [12] Valuation - Workday is graded D on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [14][15] Bottom Line - The Zacks Rank 2 suggests that Workday may outperform the broader market in the near term, despite recent underperformance [17]