Core 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]

Core Viewpoint - Workday is laying off approximately 400 employees, representing about 2% of its workforce, to realign resources and focus on top priorities [1] Group 1: Layoffs and Workforce Changes - The layoffs will primarily impact non-revenue-generating roles within the global customer service team [1] - Workday plans to continue hiring in strategic areas and locations despite the layoffs [1] Group 2: Market and Investor Sentiment - Recent developments in artificial intelligence have negatively affected investor outlook for many software companies, including Workday [2] - Shares of Workday have decreased by about 34% compared to a year ago [3] Group 3: Legal Issues - Workday is facing a class-action lawsuit alleging discrimination in its AI hiring practices based on race, age, and disability, which the company denies [3]

Core Viewpoint - Workday's stock experienced a significant increase of 5.6% to $170.15, following a period of 23.4% loss over the past four weeks, driven by strong trading volume [1] Group 1: Product Developments - The recent uptrend in Workday's stock is attributed to the launch of the Military Skills Mapper, a feature aimed at helping organizations identify and hire military veterans by translating their military skills into civilian equivalents [2] Group 2: Financial Performance Expectations - Workday is projected to report quarterly earnings of $2.30 per share, reflecting a year-over-year increase of 19.8%, with revenues expected to reach $2.52 billion, up 14.1% from the previous year [4] - The consensus EPS estimate for Workday has remained stable over the last 30 days, indicating that stock price movements may be influenced by trends in earnings estimate revisions [5] Group 3: Market Position and Demand - Workday continues to see high demand for its Human Capital Management (HCM) and financial management solutions, with its cloud-based business model and expanding product portfolio serving as key growth drivers [3] - The company's offerings in Workday Prism Analytics and Adaptive Insights for business planning are expected to contribute positively to its growth trajectory [3]

Workday is cutting about about 400 employees, saying it will help the software company better invest in priority areas https://t.co/dFoBDC63BY ...

Core Insights - Three Link Solutions has announced its status as an Innovation Partner with Workday, enhancing its collaboration and relationship with the company [1] Group 1: Partnership Details - The partnership signifies a deeper collaboration between Three Link and Workday, expanding the value delivered to Workday customers [1] - Three Link is now recognized as both an Innovation Partner and a Services Partner for Workday [1]

Core Insights - Advanced Micro Devices (AMD) is expected to report Q4 2025 earnings on February 3, 2026, with Wall Street anticipating an EPS of $1.32 and revenue of approximately $9.6 billion, reflecting 21% year-over-year growth in EPS and 25% in revenue [1] - AMD shares have increased by 115% over the past year, significantly outperforming the broader technology sector [1] Financial Expectations - Expected gross margin is 54.5% [1] - Data center revenue is projected to exceed $4 billion [1] - Consensus revenue is around $9.6 billion, with EPS consensus at $1.32 [1] - A meaningful earnings beat would require EPS of at least $1.40 and revenue exceeding $9.8 billion [1] Historical Performance - AMD has beaten or met earnings estimates in six of the past seven quarters, with an average surprise of approximately 8% [1] - In Q3 2025, AMD reported a 10.3% earnings surprise, with earnings of $0.75 compared to an estimate of $0.68 [1] - Q2 2025 saw an exceptional 1,180% earnings beat, with actual earnings of $0.54 against an expected loss [1] Recent Developments - Management guided Q4 revenue to approximately $9.6 billion with a gross margin of 54.5% [1] - The client and gaming segments generated $4 billion in combined revenue, up 73% year-over-year, driven by record Ryzen processor sales [1] - Data center revenue reached $4.3 billion, up 22% year-over-year, fueled by demand for EPYC processors and Instinct AI accelerators from major clients like OpenAI, Oracle, and IBM [1] Analyst Sentiment - HSBC raised its price target for AMD to $335 from $300, citing structural acceleration in server CPU demand driven by AI workloads [1] - Zacks Investment Research noted AMD's stock performance of 107.1% over the past year, compared to NVIDIA's 63.8%, indicating AMD's competitive position in AI accelerators [1] - The average analyst price target is $289.23, suggesting a 17% upside from current levels, with 41 out of 53 analysts rating it as Buy or Strong Buy [1] Potential Stock Movements - Bull case triggers include positive management commentary on MI500 series GPU ramp and data center revenue surpassing $4.5 billion [1] - Bear case triggers involve cautious 2026 guidance and revenue misses below $9.4 billion, particularly in the Data Center segment [1] - Wild cards include potential China export restrictions and broader concerns about AI infrastructure spending [1] Market Confidence - The options market indicates a 91.5% probability that AMD will beat consensus estimates, reflecting strong investor confidence [1] - Analysts are focused on sustaining data center revenue growth above $4.3 billion, which is critical for justifying AMD's premium valuation [1] Valuation Context - AMD trades at 37.31x forward earnings, a premium to the semiconductor sector average, justified by a 60.3% year-over-year earnings growth [1] - The company's PEG ratio of 0.51 suggests that the growth rate supports current multiples, although any guidance disappointment could lead to multiple compression [1]

Core Insights - Workday, Inc. has launched the Military Skills Mapper, a feature in Workday Recruiting aimed at helping organizations identify and hire military veterans by translating their military experience into civilian-equivalent skills [1][3][5] Group 1: Military Skills Mapper Overview - The Military Skills Mapper will assist employers in understanding how military experience aligns with modern business needs, addressing the challenge of translating military qualifications into civilian job descriptions [2][3] - This feature is expected to empower organizations to tap into a motivated and capable talent pool of veterans, supporting their commitments to hire and retain military personnel [3][4] Group 2: Functionality and Benefits - The Military Skills Mapper will analyze a veteran's service background against job descriptions to generate a tailored list of relevant civilian skills, enhancing the application experience for veterans [5][6] - By integrating this capability into Workday Recruiting, hiring teams will gain a more accurate understanding of veteran capabilities without needing external tools, thus streamlining the hiring process [6] Group 3: Availability and Company Background - The Military Skills Mapper is anticipated to be available to Workday Recruiting customers in fall 2026 [7] - Workday is an enterprise AI platform that unifies HR and Finance, serving over 11,000 organizations globally, including more than 65% of the Fortune 500 [8]

Core Viewpoint - Workday, Inc. will announce its fiscal 2026 fourth quarter and full year financial results on February 24, 2026, after market close, followed by a conference call to discuss the results and business outlook [1]. Group 1: Financial Results Announcement - The financial results announcement is scheduled for February 24, 2026, after market close [1]. - A conference call will take place at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to review the financial results [1]. Group 2: Webcast Information - A live webcast of the conference call will be available on the Workday Investor Relations site [2]. - The replay of the webcast will be accessible for a minimum of 90 days following the conference call [2]. Group 3: Company Overview - Workday is an enterprise AI platform that integrates HR and Finance, empowering organizations to make informed decisions [3]. - The platform is utilized by over 11,000 organizations globally, including more than 65% of the Fortune 500 [3].

Core Insights - Workday, Inc. is a significant player in the enterprise cloud applications sector, focusing on software solutions for finance and human resources, competing with Oracle and SAP [1] - Piper Sandler has adjusted Workday's rating to Neutral and revised the price target from $235 to $200, indicating a more cautious outlook on the stock's future performance [2][6] Company Performance - The current stock price of Workday is $173.38, reflecting a decrease of 1.28% or $2.25, with intraday fluctuations between $172.61 and $177.81 [2] - Workday's market capitalization is approximately $46.29 billion, with a trading volume of 4,857,521 shares on the day of reporting [5][6] - Over the past year, Workday's stock has experienced significant volatility, with a high of $283.68 and a low of $169.01 [5] Investor Activity - Bank of New York Mellon Corp has reduced its stake in Workday by 3.2%, now holding 1,344,923 shares valued at $323.8 million, which aligns with Piper Sandler's conservative stance [3][6] - Other investors, such as Verdence Capital Advisors LLC and Perennial Investment Advisors LLC, have made adjustments to their holdings, with Verdence increasing its stake by 1.0% and Perennial expanding by 2.8% [4]

Core Viewpoint - SAP's stock experienced a significant decline of 15% on January 29, attributed primarily to lower-than-expected cloud backlog growth of 16% in Q4, compared to analyst expectations of 26% [2][4]. Financial Performance - Q4 revenue reached €9.7 billion, an increase from €9.4 billion year-over-year, while operating profit surged to €2.6 billion from €2 billion [3]. - Full-year 2025 cloud revenue increased by 26% on a constant currency basis to €21.02 billion, with Cloud ERP Suite revenue rising by 32% to €18.12 billion [3]. - Non-IFRS operating profit grew by 28% to €10.42 billion, and free cash flow nearly doubled, increasing by 95% to €8.24 billion [3][9]. Backlog and Growth Concerns - The current cloud backlog stands at €21.1 billion ($25.3 billion), growing at 16%, which raises concerns about future revenue conversion [4][5]. - Total cloud backlog reached €77.29 billion, up 30%, but the slower growth in backlog has led to doubts about SAP's growth narrative [5]. - CEO Christian Klein indicated that the backlog growth is expected to "slightly decelerate" in 2026, with cloud revenue growth projected between 23-25% [6]. Market Reaction and Valuation - SAP's stock is trading at levels not seen since mid-2024, with a current price of $200, reflecting a 27 times trailing adjusted earnings multiple, lower than its historical average of 35 times [10][11]. - Despite the apparent undervaluation, the market remains skeptical, as a €10 billion share repurchase program initiated in February 2026 is viewed as insufficient to address the underlying growth concerns [12]. Competitive Landscape - SAP competes with major players like Oracle, Salesforce, Microsoft, and Workday, with its primary strength in Cloud ERP [13]. - The 32% increase in Cloud ERP Suite revenue indicates a strong product-market fit, but hesitance from large enterprises to commit may signal broader industry challenges [13]. Investment Dilemma - The recent decline raises questions about whether this represents a buying opportunity or a broken narrative, as the fundamentals remain solid but growth expectations have been reset [14][16]. - Investors must weigh the potential for robust growth in SAP's cloud transition against concerns about economic uncertainties and AI capabilities impacting cloud adoption [15][16].