With a market cap of $64.4 billion, Workday, Inc. (WDAY) is a leading enterprise software company based in Pleasanton, California. It offers cloud-native solutions for human capital management (HCM), financial management, planning, analytics, and ERP across industries such as technology, healthcare, education, government, and finance. 

WDAY is set to report its Q2 earnings on Thursday, Aug. 28. Ahead of the event, analysts expect WDAY to report an EPS of $0.80 per share, up 116.2% from a profit of $0.37 per share reported in the year-ago quarter. It has exceeded or met analysts' earnings estimates in two of the past four quarters, while missing on two other occasions. 

For fiscal 2025, analysts expect WDAY to report an EPS of $3.51, up 107.7% from $1.69 in fiscal 2024. Moreover, in fiscal 2026, its EPS is expected to grow 36.2% year over year to $4.78.

Over the past year, WDAY shares climbed 8%, underperforming the S&P 500 Index’s ($SPX) 17.3% gains and the Technology Select Sector SPDR Fund’s (XLK) 21.1% returns over the same time frame.

On July 10, shares of Workday fell more than 4% after Piper Sandler Companies (PIPR) downgraded the stock from “Neutral” to “Underweight,” citing valuation concerns and potential near-term growth headwinds. The firm also lowered its price target to $235, suggesting downside from current price levels. 

Moreover, analysts remain highly bullish about WDAY stock’s future prospects, with a "Strong Buy" rating overall. Among 37 analysts covering the stock, 24 recommend a “Strong Buy,” three suggest a “Moderate Buy,” nine advise a “Hold,” and the remaining analyst gives a “Strong Sell.” WDAY’s mean price of $296.59 implies a premium of 25% from its prevailing price level.