Workday Inc.: 1Q27 Preview: Seasonally Small but Low Sentiment Pairs Well with Stable Print

研报英文原文证据摘录

Workday Inc.: 1Q27 Preview: Seasonally Small but Low Sentiment Pairs Well with Stable Print

Equity Research

U.S. Software

20 May 2026

Workday Inc.

1Q27 Preview: Seasonally Small

but Low Sentiment Pairs Well with

WDAY OVERWEIGHTStable Print

Unchanged

We see potential for Q1 to reinvite interest for WDAY but are U.S. Software POSITIVE

unsure it will be a catalyst itself. Q1 is seasonally small and Unchanged

top-line upside remains limited, but we see muted Price Target USDUnchanged200.00

sentiment/valuation levels overly accounting for this and Price (19-May-26) USD 129.34

expect Q1 to reiterate WDAY's profitable growth story is Potential Upside/Downside +54.6% Source: Bloomberg, Barclays Research

intact.

Market Cap (USD mn) 32294

Sentiment for WDAY and the broader application software space remains depressed entering Q1 Shares Outstanding (mn) 249.69

with current valuation levels implying structural challenges, in our view (WDAY ~9.5x CY27E P/ Free Float (%) 98.08

FCF, ~2.8x Sales). We are not sure results itself will be a significant catalyst as Q1 is the 52 Wk Avg Daily Volume (mn) 3.7

seasonally smallest bookings quarter and the overall spending environment for back-office Dividend Yield (%) N/A

seems consistent at best (see Technology: 1H26 CIO Survey: 2026 Outlook Maintained, 4/20/26). Return on Equity TTM (%) 8.23

However, WDAY is entering the year with a growing portfolio of AI (e.g. Sana, Paradox, Current BVPS (USD) 30.12

PipeDream) and adjacent HCM/Fins solutions (e.g. Evisort) that give the company cross-sell Source: Bloomberg

opportunities and allow WDAY to tap into new budgets. We see potential for this to allow WDAY

to maintain healthy, low double-digit growth rates for longer than what currently depressed Price Performance Exchange-Nasdaq