Workday, Inc. (WDAY)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Graham's insistence on price versus defensible value, and Buffett's preference for a business that earns good returns on capital. Workday sells enterprise cloud applications for finance and spend management; the supplied figures cannot prove a moat, so I judge what is filed. In fiscal Q2 2027, the quarter ended 2026-07-31, revenue was $2.6B, net income $632.0M, and diluted EPS $2.57, versus $2.3B, $228.0M and $0.84 in fiscal Q2 2026. That is real operating momentum, and trailing free cash flow of $2.8B gives a 5.5% FCF yield against the $51.4B market cap. The balance sheet looks acceptable: debt-to-equity 0.58 and an Altman Z-score of 3.52, while FairStock's Piotroski score is a middling 5/9. But the price at the 2026-10-26 close of $208.50 is rich: P/E 42.55, P/B 7.77, EV/EBITDA 31.16, and the Graham Number is only $54.36, a negative margin of safety of 286.30%. ROE is 16.01%, but ROCE is just 4.51%, so the capital returns are not uniformly excellent. FairStock labels it a TURNAROUND because it returned to profit after a loss within three years. I see growth, but not a Graham bargain; the margin of safety is absent unless future growth proves durable.

In plain English: Workday sells cloud software that helps companies manage finances and spending. The business looks financially strong: sales and profit are growing, and it produces plenty of cash. But at $208.50, the stock looks expensive compared with its profits and assets, so it does not offer an old-fashioned bargain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer