We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Workday Set to Report Q2 Results: Will Revenue Growth Boost Earnings?
Read MoreHide Full Article
Key Takeaways
WDAY to report Q2 results on Aug. 21, subscription services revenues are projected to grow 13.5% YOY.
Strong focus on AI integration across Workday product suite is a major growth driver.
Healthy traction in multiple verticals like education, financial services, retail will likely boost net sales.
Workday, Inc. (WDAY - Free Report) is set to release second-quarter fiscal 2026 results on Aug. 21, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 9.75%, while in the last reported quarter, it delivered an earnings surprise of 12.06%.
Based in Pleasanton, CA, WDAY is expected to have recorded higher revenues on the back of solid demand for its human capital management and financial management solutions across different end markets. A strong focus on AI integration across the portfolio is a positive.
Factors at Play
During the quarter, Workday launched a powerful expansion of its AI-driven capabilities with a new wave of Illuminate Agents, designed to significantly enhance productivity across Human Resource Management and finance functions. Built on the company’s industry-leading foundation of responsible AI, these purpose-built agents aim to enhance productivity and enable smarter, faster decision-making through a contextual understanding of business data.
The company also rolled out a new unified AI developer toolset. The toolset is designed to empower developers to easily customize, configure and connect AI apps and agents on the Workday platform. The solution also includes AI Developer Copilot, a conversational AI companion that helps developers code faster. Such initiatives are expected to have boosted Workday’s commercial prospects.
During the quarter, Seattle University has opted to deploy Workday HCM, Financial Management and Workday Student solutions in its operations. Its aim is to unify HR, finance, and student information systems into the Workday cloud platform and streamline everyday tasks for the entire campus community. This is likely to have a favorable impact on third-quarter earnings.
Our estimate for Subscription Services revenues is pegged at $2.16 billion, suggesting 13.5% year-over-year growth. Our estimate for Professional Services revenues is pegged at $180 million.
For the July quarter, the Zacks Consensus Estimate for revenues is pegged at $2.34 billion, suggesting an increase from the year-ago quarter’s reported figure of $2.09 billion. The consensus estimate for adjusted earnings per share is pegged at $2.09, indicating an increase from $1.75 reported in the prior year.
Earnings Whispers for Workday Stock
Our proven model does not conclusively predict an earnings beat for Workday for the fiscal second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here.
WDAY’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.99. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Workday currently carries a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Gap (GAP - Free Report) is scheduled to report quarterly numbers on Aug. 28. It has an Earnings ESP of +1.52% and currently carries a Zacks Rank of 3.
Walmart (WMT - Free Report) is set to release quarterly numbers on Aug. 21. It currently has an Earnings ESP of +1.26% and a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Workday Set to Report Q2 Results: Will Revenue Growth Boost Earnings?
Key Takeaways
Workday, Inc. (WDAY - Free Report) is set to release second-quarter fiscal 2026 results on Aug. 21, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 9.75%, while in the last reported quarter, it delivered an earnings surprise of 12.06%.
Based in Pleasanton, CA, WDAY is expected to have recorded higher revenues on the back of solid demand for its human capital management and financial management solutions across different end markets. A strong focus on AI integration across the portfolio is a positive.
Factors at Play
During the quarter, Workday launched a powerful expansion of its AI-driven capabilities with a new wave of Illuminate Agents, designed to significantly enhance productivity across Human Resource Management and finance functions. Built on the company’s industry-leading foundation of responsible AI, these purpose-built agents aim to enhance productivity and enable smarter, faster decision-making through a contextual understanding of business data.
The company also rolled out a new unified AI developer toolset. The toolset is designed to empower developers to easily customize, configure and connect AI apps and agents on the Workday platform. The solution also includes AI Developer Copilot, a conversational AI companion that helps developers code faster. Such initiatives are expected to have boosted Workday’s commercial prospects.
During the quarter, Seattle University has opted to deploy Workday HCM, Financial Management and Workday Student solutions in its operations. Its aim is to unify HR, finance, and student information systems into the Workday cloud platform and streamline everyday tasks for the entire campus community. This is likely to have a favorable impact on third-quarter earnings.
Our estimate for Subscription Services revenues is pegged at $2.16 billion, suggesting 13.5% year-over-year growth. Our estimate for Professional Services revenues is pegged at $180 million.
For the July quarter, the Zacks Consensus Estimate for revenues is pegged at $2.34 billion, suggesting an increase from the year-ago quarter’s reported figure of $2.09 billion. The consensus estimate for adjusted earnings per share is pegged at $2.09, indicating an increase from $1.75 reported in the prior year.
Earnings Whispers for Workday Stock
Our proven model does not conclusively predict an earnings beat for Workday for the fiscal second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here.
WDAY’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.99. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Workday, Inc. Price and EPS Surprise
Workday, Inc. price-eps-surprise | Workday, Inc. Quote
Zacks Rank: Workday currently carries a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Electromed, Inc. (ELMD - Free Report) is set to release quarterly numbers on Aug. 26. It has an Earnings ESP of +2.33% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap (GAP - Free Report) is scheduled to report quarterly numbers on Aug. 28. It has an Earnings ESP of +1.52% and currently carries a Zacks Rank of 3.
Walmart (WMT - Free Report) is set to release quarterly numbers on Aug. 21. It currently has an Earnings ESP of +1.26% and a Zacks Rank #2.