Workday share: Chart from 23.05.2025, price: USD 272.07 - symbol: WDAY | Source: TWS
Workday is trading down 6.90% in pre-market trading at USD 253.30. If the price decline is confirmed in regular trading, the next target could be the Unterstützung USD 250 could be targeted next.
If this support is broken, there is further downside potential towards USD 235 and USD 220.
However, if Workday does not fall below USD 250, the spook could already be over.
Outlook and valuation
For the second quarter, Workday is forecasting subscription sales of USD 2.16 billion, which would correspond to an increase of 13.5%.
The operating margin (non-GAAP) is expected to rise to 28%, up from 24.9% a year ago.
For the full financial year, subscription revenues are expected to increase by 14% to USD 8.80 billion and the forecast for the operating margin (non-GAAP) has been raised from 28.0% to 28.5%.
The strong first quarter and the outlook suggest that the previous consensus estimates may be too low.
Previously, earnings were expected to rise 18% this year to USD 8.60 per share.
In response to the better-than-expected quarterly figures and the increase in the forecast, the share price rose nachbörslich fell by 6.90 % to USD 253.30.
Workday therefore has a forward P/E of 29.5, which is easily justifiable in relation to the growth rates and business model.
In addition, further share buybacks with a volume of USD 1.0 billion have been agreed. To date, the buybacks have not yet been sufficient to lead to a decline in the number of shares, but they do compensate for the share-based payments (SBC).
The company has the necessary small change for this, as it most recently had cash reserves (cash, cash equivalents and marketable securities) of USD 7.97 billion
