How Does Workday Generate Its Revenue?
Workday builds enterprise software for managing finance and human resources. Its platform is used by organizations to run core administrative workflows, including payroll and planning. The company sells cloud-based applications and related services to business customers. With a market value around USD 33.1 billion, it sits in the large-cap tier of enterprise software.
Are Workday Margins Supporting Growth?
FundamentalsFor the year ended January 31, 2026, reported in USD, revenue was USD 9.55 billion, with EBIT of USD 721 million and net income of USD 693 million. Revenue grew 13.1% year over year, alongside a 75.70% gross margin and a 13.47% operating margin on a trailing basis.
Cash was USD 1.50 billion at period end. Depreciation and amortization were USD 347 million and capital spending was USD 162 million, producing a cash flow proxy of about USD 617.6 million under the stated methodology.
Is Workday Fairly Valued by the Market?
DCF / MultiplesAt USD 130.88, the stock sits below a DCF range that runs from USD 80.19 in a weaker outcome to USD 139.54 centrally and USD 216.73 in a stronger outcome. The pricing also comes with a 26.70 trailing P/E and 21.17 EV/EBITDA, which reflects current earnings and cash expectations in the market quote.
Valuation Hinges on Profit Stability
TakeawayThe price looks like it’s treating durability as a given. That can work if margins and cash generation keep compounding. If profitability stalls, the valuation tension shows up quickly. The mispricing, if any, sits in how stable those economics really are.