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    How Strong Q2 Results, New Deals, And Buybacks At Workday (WDAY) Have Changed Its Investment Story

    Simply Wall St·09/05/2026 02:24:30
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    • In late August 2026, Workday reported second-quarter revenue of US$2.65 billion and net income of US$632 million, alongside updated subscription revenue guidance and a new US$4.00 billion share repurchase authorization.
    • At the same time, Workday highlighted expanding adoption of its unified HR and finance platform across U.S. state and local governments, plus new ecosystem partnerships with Bright Horizons, BDO Canada, and Salary.com that deepen its role in customers’ core operations.
    • Next, we’ll examine how this combination of strong earnings and expanding public-sector adoption affects Workday’s existing investment narrative.

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    Workday Investment Narrative Recap

    To own Workday, you need to believe its unified HR and finance cloud, increasingly infused with AI, can stay mission critical even as competition and regulation intensify. The latest earnings beat, higher subscription guidance, and new US$4.00 billion buyback help the near term story, but they do not remove the key risk that rising R&D and AI investments may not translate into lasting pricing power or margin improvement.

    Among the recent announcements, the wave of new state and local government wins across the U.S. stands out. These long-term public sector deployments align closely with the consensus catalyst of customers replacing legacy on-premise systems with Workday’s cloud platform, reinforcing its role in regulated, mission critical workloads while also exposing the company more directly to funding volatility and policy shifts in these sectors.

    Yet behind the strong quarter, investors should still be aware of how heavier AI spending and expansion into regulated sectors could...

    Read the full narrative on Workday (it's free!)

    Workday's narrative projects $13.4 billion revenue and $2.1 billion earnings by 2029. This requires 10.9% yearly revenue growth and a roughly $1.3 billion earnings increase from $847.0 million today.

    Uncover how Workday's forecasts yield a $171.14 fair value, a 13% downside to its current price.

    Exploring Other Perspectives

    WDAY 1-Year Stock Price Chart
    WDAY 1-Year Stock Price Chart

    Some of the most optimistic analysts were already assuming Workday could reach about US$14.3 billion in revenue and US$3.3 billion in earnings by 2029, so this new public sector momentum and AI focused ecosystem news may either strengthen that bullish view or highlight how much has to go right for those expectations to hold up.

    Explore 11 other fair value estimates on Workday - why the stock might be worth 13% less than the current price!

    Form Your Own Verdict

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

    • A great starting point for your Workday research is our analysis highlighting 3 key rewards that could impact your investment decision.
    • Our free Workday research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Workday's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.