Workday Stock Falls Despite Market Gain: What You Need to Know

Workday (WDAY) stock sank 1.59% to $237.20, underperforming the S&P 500's 0.07% gain. The company is expected to post an EPS of $2.09 and quarterly revenue of $2.34 billion in its upcoming earnings disclosure, representing 19.43% and 12.22% growth, respectively. Analysts are optimistic about Workday's performance, with a Zacks Rank of #3 (Hold) and a Forward P/E ratio of 27.69, which is lower than the industry average of 29.49.

Title: Workday Stock Slips Despite Positive Earnings Forecasts

Workday (WDAY) stock ended the recent trading session at $237.20, demonstrating a -1.59% change from the preceding day's closing price. This performance was underwhelming compared to the S&P 500's daily gain of 0.07% [3]. The company is expected to post an EPS of $2.09 and quarterly revenue of $2.34 billion in its upcoming earnings disclosure, representing 19.43% and 12.22% growth, respectively [3].

Analysts remain optimistic about Workday's performance, with a Zacks Rank of #3 (Hold) and a Forward P/E ratio of 27.69. This ratio is lower than the industry average of 29.49 [3]. Additionally, Workday has a PEG ratio of 1.47, which is lower than the industry average of 2.22 [3].

Workday's stock has appreciated by 3.24% over the past month, underperforming the Computer and Technology sector's gain of 8.22% and the S&P 500's gain of 5.71% [3]. The company's Zacks Consensus Estimates predict full-year earnings of $8.7 per share and revenue of $9.5 billion, representing year-over-year changes of +19.18% and +12.44%, respectively [3].

Despite the recent dip, Workday's stock has shown signs of resilience, with analysts forecasting growth in earnings and revenue. The company's ability to generate pre-tax profits and reinvest in its business has been noted, with an ROCE of 5.1% [2]. However, the stock has only returned 33% to shareholders over the last five years, indicating room for improvement in valuation and other metrics [2].

Investors should continue to monitor Workday's performance, especially with upcoming earnings disclosures and potential analyst revisions. The company's ability to generate returns and reinvest in its business presents opportunities for growth, but the current valuation and other metrics may need to improve for a more significant stock performance.

References
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TL21A:0-buzz-nasdaq-top-and-bottom-performing-stocks-at-about-11-01-a-m-edt-on-2025-07-24/
[2] https://finance.yahoo.com/news/return-trends-workday-nasdaq-wday-120036564.html
[3] https://finance.yahoo.com/news/workday-wday-stock-sinks-market-215003462.html