Enterprise software company Workday (NASDAQ: WDAY) will be announcing earnings results this Tuesday after the bell. Here’s what to expect.
Workday met analysts’ revenue expectations last quarter, reporting revenues of $2.35 billion, up 12.6% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but billings in line with analysts’ estimates.
Is Workday a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Workday’s revenue to grow 11.8% year on year to $2.42 billion, slowing from the 15.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Workday has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.9% on average.
Looking at Workday’s peers in the finance and hr software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. BILL delivered year-on-year revenue growth of 10.4%, beating analysts’ expectations by 1.2%, and Marqeta reported revenues up 27.6%, topping estimates by 9.7%. BILL traded up 2.5% following the results while Marqeta was also up 8.9%.
Read our full analysis of BILL’s results here and Marqeta’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the finance and HR software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.7% on average over the last month. Workday is down 5.8% during the same time and is heading into earnings with an average analyst price target of $281.44 (compared to the current share price of $225.28).
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