Workday Inc. (NASDAQ:WDAY) Quarterly Earnings Preview

• Workday Inc. (NASDAQ:WDAY) is expected to report a significant 19.4% increase in EPS and a 12.2% year-over-year revenue growth.
• The company's financial stability is underscored by no earnings estimate revisions over the past 30 days and a strong financial position with a debt-to-equity ratio of 0.38.
• Workday's valuation metrics, including a P/E ratio of approximately 125.76 and a price-to-sales ratio of about 7.06, reflect high investor expectations for future growth.

Workday Inc. (NASDAQ:WDAY), a leading provider of cloud-based software solutions, specializing in Human Capital Management (HCM) and financial management, is set to release its quarterly earnings on August 21, 2025. Analysts are estimating an earnings per share (EPS) of $2.09 and projected revenue of $2.34 billion. Workday competes with other software giants like Oracle and SAP in the enterprise software market.

Workday's anticipated EPS of $2.09 represents a significant 19.4% increase from the same period last year. This growth is largely driven by the rising demand for its AI-powered solutions in the HCM and finance sectors. The company's revenue is expected to reach $2.34 billion, marking a 12.2% year-over-year increase. This growth highlights Workday's ability to capitalize on the increasing need for cloud-based solutions.

The stability in Workday's earnings estimates, with no revisions over the past 30 days, suggests confidence among analysts in the company's performance. This stability is important as it often influences investor behavior and can impact the short-term price performance of the stock. Historically, Workday's stock has shown a positive one-day return following earnings announcements 55% of the time over the past five years, as highlighted by Forbes.

Workday's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 125.76, indicating that investors are willing to pay a premium for its earnings. The price-to-sales ratio stands at about 7.06, while the enterprise value to sales ratio is around 7.33. These figures suggest that investors have high expectations for Workday's future growth.

Workday maintains a strong financial position with a debt-to-equity ratio of 0.38, indicating a relatively low level of debt compared to equity. The company's current ratio of 2.01 suggests it has a strong ability to cover its short-term liabilities with its short-term assets. These metrics reflect Workday's financial health and its capacity to sustain growth in the competitive cloud software market.