Equity Profile

WDAY

Workday, Inc.

Information TechnologyApplication Software$35.8B

Aug20Thu

Pre-Earnings Brief

UpcomingQ2-2027After Close5:00 PM EDT

Company Snapshot

Workday, Inc. is a leading provider of cloud-based software for finance and human resources....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well Workday has managed its costs and revenue.

N/A

Revenue Growth

Revenue growth is essential for understanding the company's ability to expand its market share and attract new customers.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

WDAY Q2-2027 Earnings Preview

Context

Company Snapshot

Workday, Inc. is a leading provider of cloud-based software for finance and human resources. As businesses increasingly shift to digital solutions, Workday's offerings are crucial for organizations looking to streamline operations and improve efficiency in managing their workforce and finances.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+198.49%

Avg Stock Reaction

-0.14%

Last Quarter Recap

In the last quarter, Workday reported an impressive EPS of $2.66, significantly beating expectations by nearly 127%. However, the stock experienced a decline of 3.76% the following day, indicating market caution despite strong earnings.

Management Promises & Guidance

Continued investment in product innovation.
Focus on expanding customer base in key sectors.
Commitment to improving customer experience and support.

Expectations

Wall Street Expectations

Overall, investors are cautiously optimistic about Workday's upcoming earnings, given its strong performance in previous quarters. However, there is uncertainty about whether this trend can continue amidst a competitive landscape.

Bull Case

If Workday can demonstrate strong revenue growth and maintain high customer retention rates, it could signal robust demand for its services, leading to a positive market reaction.

Bear Case

Conversely, if the company fails to meet expectations or shows signs of slowing growth, it could lead to a significant drop in stock price, given the high valuation.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter, and how does it compare to previous quarters?

Given the company's strong track record of beating EPS estimates, this will be a key indicator of ongoing performance and market confidence.

What is the current customer retention rate, and how does it reflect on future growth?

High customer retention is crucial for sustained revenue growth, and any decline could raise concerns about the company's competitive position.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Workday's ability to maintain high customer retention rates, which could lead to stronger-than-expected revenue growth this quarter.

Supporting Evidence

Workday has consistently beaten EPS estimates, indicating strong operational performance.

The options market is pricing in a larger move than historical averages suggest, indicating potential for a surprise.

Recent insider buying suggests confidence in the company's future performance.

Key Risk

If customer retention rates exceed 95%, it could significantly bolster the bullish case.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on whether Workday can sustain its impressive earnings growth while managing costs effectively.

Bull Confirmed If

An EPS of $2.80 or higher, indicating strong profitability and cost management.

Bear Confirmed If

An EPS below $2.40, which could signal potential issues in revenue generation or cost control.

Pre-Earnings Positioning

Options Market

Implied Move

±8.89%

Historical Avg

±1.7%

Pricing rich

The options market is pricing in a significant potential move, indicating that traders expect volatility around the earnings announcement.

Options are pricing ±8.9% while WDAY has averaged ±1.7% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.6%

30d HV

66.6%

Calls (368K)P/C Ratio: 0.50Puts (241K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Information Technology

n=30

Fade rate: 4 of 9 (44%)

This setup has occurred 30 times across Information Technology in the last 2 years. 4 of 9 faded and 5 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 4.3%, with a raw directional average of -0.4% (modestly negative historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Workday beats expectations, history suggests a modest positive reaction, with an average 1-day move of around 1.69%, confirming strong demand.

In-Line / Cautious

If results are in line with expectations, the stock may react cautiously, reflecting uncertainty in future growth prospects.

Miss

A miss on earnings could lead to a more significant decline, with historical patterns suggesting an average drop of around 0.14% after misses.

Preparation

Congressional Activity

House & Senate STOCK Act disclosures over the trailing 6 months.

Trades

2 buys·0 sells

Members

House only

Est. Notional

$2,002.00–$30,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
2

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on customer acquisition strategies and their effectiveness.
2Insights into the competitive landscape and how Workday is positioning itself.
3Details on product innovation and upcoming features.
4Management's outlook on economic conditions affecting business spending.
5Any changes in guidance for the next quarter.

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Company Snapshot

Workday, Inc. is a leading provider of cloud-based software for finance and human resources....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well Workday has managed its costs and revenue.

N/A

Revenue Growth

Revenue growth is essential for understanding the company's ability to expand its market share and attract new customers.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

WDAY Q2-2027 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+198.49%

Avg Stock Reaction

-0.14%

Last Quarter Recap

Management Promises & Guidance

Continued investment in product innovation.
Focus on expanding customer base in key sectors.
Commitment to improving customer experience and support.

Expectations

Wall Street Expectations

Bull Case

If Workday can demonstrate strong revenue growth and maintain high customer retention rates, it could signal robust demand for its services, leading to a positive market reaction.

Bear Case

Conversely, if the company fails to meet expectations or shows signs of slowing growth, it could lead to a significant drop in stock price, given the high valuation.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter, and how does it compare to previous quarters?

Given the company's strong track record of beating EPS estimates, this will be a key indicator of ongoing performance and market confidence.

What is the current customer retention rate, and how does it reflect on future growth?

High customer retention is crucial for sustained revenue growth, and any decline could raise concerns about the company's competitive position.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Workday's ability to maintain high customer retention rates, which could lead to stronger-than-expected revenue growth this quarter.

Supporting Evidence

Workday has consistently beaten EPS estimates, indicating strong operational performance.

The options market is pricing in a larger move than historical averages suggest, indicating potential for a surprise.

Recent insider buying suggests confidence in the company's future performance.

Key Risk

If customer retention rates exceed 95%, it could significantly bolster the bullish case.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on whether Workday can sustain its impressive earnings growth while managing costs effectively.

Bull Confirmed If

An EPS of $2.80 or higher, indicating strong profitability and cost management.

Bear Confirmed If

An EPS below $2.40, which could signal potential issues in revenue generation or cost control.

Pre-Earnings Positioning

Options Market

Implied Move

±8.89%

Historical Avg

±1.7%

Pricing rich

The options market is pricing in a significant potential move, indicating that traders expect volatility around the earnings announcement.

Options are pricing ±8.9% while WDAY has averaged ±1.7% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.6%

30d HV

66.6%

Calls (368K)P/C Ratio: 0.50Puts (241K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Information Technology

n=30

Fade rate: 4 of 9 (44%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Workday beats expectations, history suggests a modest positive reaction, with an average 1-day move of around 1.69%, confirming strong demand.

In-Line / Cautious

If results are in line with expectations, the stock may react cautiously, reflecting uncertainty in future growth prospects.

Miss

A miss on earnings could lead to a more significant decline, with historical patterns suggesting an average drop of around 0.14% after misses.

Preparation

Congressional Activity

House & Senate STOCK Act disclosures over the trailing 6 months.

Trades

2 buys·0 sells

Members

House only

Est. Notional

$2,002.00–$30,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
2

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on customer acquisition strategies and their effectiveness.
2Insights into the competitive landscape and how Workday is positioning itself.
3Details on product innovation and upcoming features.
4Management's outlook on economic conditions affecting business spending.
5Any changes in guidance for the next quarter.