Back to top

Image: Bigstock

Can Workday's AI Expansion Through Sana Boost Its Future Profits?

Read MoreHide Full Article

Key Takeaways

  • Workday introduces Sana, an AI platform to manage HR and finance tasks using automation and a chat interface.
  • Sana offers Find, Act, Build, and Automate functions to access data, complete tasks and create workflows.
  • Sana Self-Service Agent handles over 300 tasks, while Sana Enterprise integrates apps like Gmail & Salesforce.

Workday, Inc. (WDAY - Free Report) has launched Sana, an artificial intelligence (AI) platform that helps companies manage HR and finance work more easily. It includes features like the Sana Self-Service Agent and Sana Enterprise to answer questions and automate tasks. By integrating AI directly into its core system, Workday aims to move beyond traditional assistants and create a solution that can complete tasks automatically.

Sana from Workday uses AI to not only answer questions but also complete HR and finance tasks. Find, Act, Build and Automate are the four key functions through which it works, enabling employees to access information quickly, complete tasks, create reports and easily set up workflows. It is built into Workday’s secure system, ensuring that every action follows existing permissions, compliance rules and organizational policies.

The platform is a new unified AI interface that replaces menus with a chat-like experience, helping employees, managers and leaders use Workday easily and complete tasks faster. The Sana Self-Service Agent, equipped with more than 300 skills, handles everyday tasks like payroll questions, leave tracking and benefits, reducing support requests. Sana Enterprise connects tools like Gmail, Outlook, Salesforce and SharePoint, allowing users to complete tasks across different apps in one conversation.

By combining automation, intelligence and seamless integration through its new AI platform, Workday is positioning itself at the forefront of enterprise AI, representing a major step toward a future where AI becomes an active partner in helping users complete their work more efficiently.

How Competitors Are Advancing in Enterprise AI?

Workday faces competition from Oracle Corporation (ORCL - Free Report) and Automatic Data Processing, Inc. (ADP - Free Report) . Oracle is currently focusing on building AI directly into its cloud applications and databases, especially in HR, finance and supply chain systems. It is also investing heavily in AI infrastructure and data centers to support large-scale AI models and enterprise use. Oracle has signed a cloud deal with OpenAI to provide AI computing power and build large-scale AI data centers for enterprise use.

ADP is using AI to improve HR and payroll by automating tasks and improving accuracy. It is also focusing on AI agents to handle workflows and make HR operations more efficient. ADP has launched new AI agents and partnered with companies to expand its AI-powered HR solutions.

Workday’s Price Performance, Valuation & Estimates

Workday shares have lost 47.6% over the past year compared with the industry’s decline of 5.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, Workday trades at a forward price-to-sales ratio of 3.14, below the industry average of 3.89.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings estimates for fiscal 2027 have remained static at $10.54 over the past 60 days, while the same for fiscal 2028 has declined 1.1% to $12.32.

Zacks Investment Research
Image Source: Zacks Investment Research

Workday currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in