$WDAY (-1,83%)

Double-digit growth in orders on hand - and AI is the driving force

The order backlog increased by 17.6% to USD 25.37 billion. The value of orders to be fulfilled in the next 12 months climbed by 16.4% to USD 7.91 billion.

Growth is likely to continue or accelerate in the near future.

The forecast for subscription sales in the current financial year was increased slightly from USD 8.80 billion to USD 8.82 billion. In addition, Workday is forecasting an operating margin of 29.0% instead of 28.5%.

According to the Management Board, more than three quarters of all new orders and around one third of all new orders from existing customers now include one or more AI products.

The order value of AI products has more than doubled over the course of the year.

In the last quarter, Workday won several major customers in the AI segment, including Trinity Health, Chipotle and Cox Health.

To further fuel growth in this area, Workday is acquiring Paradox, a specialist in simplifying application and recruitment processes. This acquisition provides Workday with an AI-powered suite that simplifies the entire process, from employee sourcing to hiring to onboarding.

Outlook and valuation

According to consensus estimates, free cash flow is expected to increase by 22% to USD 8.90 per share this year. As FCF rose by 25 % in the first half of the year, this seems plausible.

Despite the strong quarterly figures and the increase in the forecast, the share is trading vorbörslich 4.09 % in the red at USD 218.28.

Workday thus has a forward P/FCF of 24.5, which is easily justifiable in view of the double-digit growth rates and the high predictability of the business.

In the last five years, the P/FCF has averaged 60, which was certainly a bit too much of a good thing, but it also shows how much the share was loved at times and how out of fashion it has become.

Fundamentally, relatively little has changed during this time. Sales growth has been almost stable at 12-13% per year since the 2021 financial year (1/2021) and FCF growth has averaged 18%.

The current financial year is therefore average or just above, but the valuation is not, as Workday is currently being traded as an AI loser. There is a fear that software companies will be disrupted by the dozen in the future

Workday share: Chart from 22.08.2025, price: USD 227.58 - symbol: WDAY | Source: TWS

If the share falls below USD 220 in regular trading, further losses towards USD 210 or USD 200 must be expected.

Below USD 200 there would be a Verkaufssignal with possible price targets at USD 176 and 159.

If, on the other hand, the stock quickly returns above USD 220, the bulls will once again have the advantage. Possible Kursziele on the upside are USD 240 and 250.

https://www.lynxbroker.de/boerse/boerse-kurse/aktien/workday-aktie/workday-analyse/?a=3355991664&utm_medium=email&utm_source=newsletter&utm_campaign=newsletter-boersenblick&newsletter=true&mc-rss-cache-bypass=2025082506&goal=0_d93daae099-8f709ff3a8-410756260#workday-ki-geschaeft-hat-sich-kurzerhand-verdoppelt

Greetings from your vacation!

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$WDAY (-1,83%)

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

https://www.lynxbroker.de/boerse/boerse-kurse/aktien/workday-aktie/workday-analyse/?a=3355991664&utm_medium=email&utm_source=newsletter&utm_campaign=newsletter-boersenblick&newsletter=true&mc-rss-cache-bypass=2025052607&goal=0_d93daae099-8acccb8cd2-410756260#wachstum-satt-aktie-schwach-was-ist-los-bei-workday

Numerous exciting quarterly figures are due this week. Particularly in focus: Palo Alto Networks ($PANW (-0,28%)), Snowflake ($SNOW (-1,78%)), Target ($TGT (+0,09%)), Intuit ($INTU (-1,02%)), Workday ($WDAY (-1,83%)), Deckers Outdoor ($DECK (-0,69%)) and BJ's Wholesale ($BJ (-0,3%)).

⸻

📅 Monday (19.05.)

- Trip.com ($TCOM)

- ZIM Integrated Shipping ($ZIM)

- 8x8 ($EGHT)

- Gilat Satellite ($GILT)

- Agilysys ($AGYS)

- Compugen ($CGEN)

- Transcat ($TRNS)

📅 Tuesday (20.05.)

- Palo Alto Networks ($PANW)

- Bilibili ($BILI)

- Tuya ($TUYA)

- Modine ($MOD)

- Toll Brothers ($TOL)

- Viking Holdings ($VIK)

- Amer Sports ($AS)

- Arbe Robotics ($ARBE)

- XPeng ($XPEV)

- Full Truck Alliance ($YMM)

- XP Inc ($XP)

📅 Wednesday (21.05.)

- Target ($TGT)

- TJX Companies ($TJX)

- Baidu ($BIDU)

- Medtronic ($MDT)

- Wix.com ($WIX)

- Urban Outfitters ($URBN)

- Domo ($DOMO)

- American Superconductor ($AMSC)

- Qifu Technology ($QFIN)

📅 Thursday (22.05.)

- Analog Devices ($ADI)

- BJ's Wholesale ($BJ)

- Deckers Outdoor ($DECK)

- Autodesk ($ADSK)

- Intuit ($INTU)

- Workday ($WDAY)

- Ross Stores ($ROST)

- Advance Auto Parts ($AAP)

- Lightspeed Commerce ($LSPD)

- TD Bank ($TD)

- Keysight Technologies ($KEYS)

📅 Friday (23.05.)

- Booz Allen Hamilton ($BAH)

🔗 Full overview: earningswhispers.com/calendar

No inclusion in the S&P 500 - These stocks are now plummeting! $COIN (-0,04%)
$TTD (-11,98%)
$APP (+1,23%)

Investors are fleeing the stocks of their recently celebrated favorites such as AppLovin or Coinbase on Monday. Double digits at times!

Summarized for you

Investors flee AppLovin and Coinbase shares.

AppLovin and The Trade Desk fall sharply, up to -17.5%.

S&P 500 rebalancing influences share prices significantly.

In contrast, shares of Apollo Global Management and Workday gained as their inclusion in the S&P 500 was announced. Workday gained up to eight percent on the trading floor. $APO (-0,57%)
$WDAY (-1,83%)

https://www.wallstreet-online.de/nachricht/18801086-anleger-ergreifen-flucht-aufnahme-s-p-500-aktien-knallen-runter

$PAYC (-0,59%) The provider of cloud-based HCM systems has started a 52-week high today.

After a difficult year in terms of share price, the direction is right again 🤩

A slump occurred on Halloween 2023, which could not be corrected in the following months. Exactly one year later, on Halloween 2024, the quarterly figures and the further outlook were again received more favorably by the market.

Since then, the share price has stabilized and it looks as if it will continue to head north 📈

The 200GLD was broken upwards by the 50GLD in November. In the meantime, the 100GLD is also lining up with the upward-turning 200GLD 🚀

The 52-week high underlines the company's strong market performance and reflects investor confidence and the successful implementation of its business strategies.

In other recent news, Paycom Software reported impressive year-over-year revenue growth of 11%, reaching $452 million in the third quarter. BMO Capital Markets and Piper Sandler raised their price targets for Paycom.

CEO Chad Richison emphasized that September was the strongest revenue month in Paycom's history, mainly due to the acquisition of new key accounts. For the fourth quarter, Paycom remains cautious, pointing to unpredictable bonus payments and interest rate fluctuations as potential challenges. These recent developments reflect Paycom's strategic focus on automation solutions and the continued momentum in the market.

My follow-on purchases in May and June 2024 have proven to be good follow-on purchases in hindsight (you only know afterwards😅). As I was convinced by Paycom, I deliberately improved my buy-in.

This allowed me to turn the position from a significant loss position into a +40% return position.

A few days ago I reduced the position by about 1/4 (from 43 to 33 shares). With this size, the position can now remain in the portfolio.

Who has the $PAYC (-0,59%) or the big competitors such as $WDAY (-1,83%) in the portfolio or on the watchlist?

Source: Paycom IR and Investing.com