WDAY

WDAY

Workday, Inc.

Recurring SaaS

★ Quality 20/100
Overvalued

Price today

$195.79

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charlieapp.co

What this business is made of

20qualityReturnsMoatBalance sheetPricing power *Reinvestment
* This axis is an estimate: we don't have the figure that measures it for this company.

The business

The nervous system of HR and finance that nobody wants to replace.

Workday sells cloud software for human capital management (HCM) and finance, aimed at large enterprises. It charges a recurring annual subscription based on headcount. It closed FY2026 with $9.6B in revenue and $2.8B in free cash flow.

Migrating the payroll and finance system of a 50,000-employee corporation is expensive, slow, and risky. That creates high switching costs and strong retention. But it competes against SAP and Oracle, which have more muscle and deeper pockets.

Revenue history

$5.1B
2022
$6.2B
2023
$7.3B
2024
$8.4B
2025
$9.6B
2026
CAGR 5 años: +17%

From $5.1B to $9.6B in 4 years — nearly 1.9x its size. Selling more and more is the base of everything else.

Where each $100 of sales goes

Revenue $9.6B · FY2026

Costs and operations$8.9B · 93%
Net profit$693M · 7%

Of every $100 in sales, $93 goes to costs and operations; $7 is left as net profit (7% margin).

Catalysts and risks

AI expansion across the platform with separately charged modules since 2025.

International growth, today less than 25% of revenue.

FCF margin near 30% that keeps climbing with scale.

⚠️

Slowing growth: from the historical 20%+ toward 15%.

⚠️

Oracle and SAP going after the same customer with integrated bundles.

⚠️

Net income of only $0.7B on $9.6B — it relies on stock-based compensation to look good.

Charlie's note

Sticky business with customers who don't move easily. The problem is the price: you pay a lot for growth that isn't what it used to be. Good business, demanding valuation.

Analysis · June 2026

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