Gross Retention

WDAY▲ long

500 bpsmedium4mo horizon

Thesis

Workday's HR and finance data model gives it an architectural advantage in enterprise AI adoption that competitors stitching together applications cannot match. With 92.6% subscription revenue, the Insperity partnership unlocks mid-market distribution while agents that touch payroll, benefits, and financial approvals require governed context only Workday's unified platform provides.

What would prove this wrong

Workday subscription revenue growth falls below 15% in any quarter through FY2027

Unwind Conditions

[falsified]Workday reports subscription revenue growth below 15% in any quarterly filing through FY2027
[risk stop]Close drops 15% from open price

Status

2026-08-24pending review

Financial Analytics

Quantitative context for the qualitative thesis. Valuation is not the argument — it is the landscape against which the thesis plays out.

$200.15

MCap 49.4B

EV 48.9B

Rev +13.5% YoY (+15.4% CAGR)

80% of 52w high

Valuation

62.5x

P/E Trailing

15.8x

P/E Forward

2.4x

PE / Comp Median

vs Peers

SAP SE

PE 27.9xGM 74%

Oracle Corporation

PE 24.4xGM 66%

Automatic Data Processing, Inc.

PE 26.0xGM 49%

MedianPE 26.0x

Margins

75.8%

Gross

13.3%

Operating

8.6%

Net

Trendstable

Cash Flow & DCF

FCF Yield6.3%

DCF Sanity Check+76%

$352.33 implied

Current: $200.15 · WACC: 0.1% · Terminal: 3%

Sanity check only — not a price target.

Data as of 2026-08-24 14:14 UTC · Source: Yahoo Finance (via yfinance)

Evaluation

No evaluation data available.