Anticipated Highlights of Workday's Q2 2025 Financial Report
Workday, Inc. (WDAY), a leading enterprise software company based in Pleasanton, California, is preparing to release its Q2 earnings report on August 28, 2022. Ahead of this event, the company enjoys a robust analyst consensus, with a "Buy" rating and an average price target around $297 to $301.
As of mid-2025, 37 analysts cover Workday, with most giving it a "Buy" or "Moderate Buy" rating and very few or no sell ratings. The average analyst price targets range from about $296.88 to $301.08, forecasting roughly a 24-26% price increase over the next year.
For instance, 27 analysts yield a consensus rating of "Buy" with an average price target of $301.08, forecasting a 24.55% increase. Another source reports 28 brokerages giving a "Moderate Buy" consensus with a twelve-month price target of $296.88. Earlier analysis also mentions 31 buy ratings with no sell ratings and an average target price around $297.42.
This bullish sentiment indicates analyst confidence in Workday's strong future performance and potential stock appreciation heading into and beyond the August 2022 earnings report. At the time, the stock price was roughly in the $235–$240 range, so the consensus targets suggested significant upside potential.
However, not all analysts share the same optimistic outlook. Piper Sandler Companies downgraded Workday's stock from "Neutral" to "Underweight" citing valuation concerns and potential near-term growth headwinds as reasons for the downgrade.
Workday offers cloud-native solutions for human capital management (HCM), financial management, planning, analytics, and ERP. The company serves various industries such as technology, healthcare, education, government, and finance.
In terms of financial projections, analysts expect Workday to report an EPS of $3.51 for fiscal 2025, up 107.7% from $1.69 in fiscal 2024. For fiscal 2026, Workday's EPS is expected to grow 36.2% year over year to $4.78.
Workday is scheduled to report its Q2 earnings on Thursday, Aug. 28. Analysts anticipate the company to report an EPS of $0.80 per share for Q2, a 116.2% increase from the $0.37 per share reported in the year-ago quarter.
It's important to note that the information and data in this article are solely for informational purposes. The article does not constitute investment advice or a recommendation to buy, sell, or hold any security.
As of the time of writing, Kritika Sarmah did not have positions in any of the securities mentioned in the article. Over the past year, WDAY shares have climbed 8%, underperforming the S&P 500 Index's 17.3% gains and the Technology Select Sector SPDR Fund's 21.1% returns.
Among the 37 analysts covering the stock, 24 recommend a "Strong Buy", three suggest a "Moderate Buy", and nine advise a "Hold". Despite the downgrade from Piper Sandler Companies, analysts remain highly bullish about WDAY stock's future prospects, with an overall "Strong Buy" rating.
Business analysts anticipate Workday's financial growth, forecasting a 107.7% EPS increase from fiscal 2024 to fiscal 2025, followed by a 36.2% year-over-year growth in fiscal 2026. This tech-oriented enterprise software company, serving sectors like finance, technology, healthcare, education, and government, enjoys a robust analyst consensus of a "Strong Buy" rating for its stock. Despite underperforming the S&P 500 Index and the Technology Select Sector SPDR Fund, analyst optimism for Workday's stock future prospects remains high.
