Will Revenue Growth Boost Earnings?

Workday, Inc. WDAY is set to release fourth-quarter fiscal 2026 results on Feb. 24, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 9.11%, while in the last reported quarter, it delivered an earnings surprise of 8.92%.

Based in Pleasanton, CA, WDAY is expected to have recorded higher revenues on the back of solid demand for its human capital management and financial management solutions across different end markets. A strong focus on AI integration across the portfolio is a positive.

During the quarter, Workday has expanded Workday GO, its all-in-one “Workday for All” solution. The offering simplifies deployment with preconfigured tools, unified workflows, and scalable features, helping organizations streamline HR and finance operations while accelerating digital transformation and improving operational efficiency.

It has also introduced the Workday EU Sovereign Cloud, enabling enterprises to adopt AI with full EU data residency and control. The offering helps organizations meet strict regulatory and compliance requirements while securely leveraging advanced analytics and AI capabilities to drive innovation and operational efficiency.

In the to be reported quarter, U.S. Tech Force joined forces with Workday to facilitate the hiring of a modern workforce with skills in AI and other advanced technologies. Apart from the government sector, Workday is also witnessing solid momentum in the retail and hospitality sector with several customer wins during the quarter. These factors are likely to have benefited Workday’s fiscal fourth-quarter performance.

WDAY completed the acquisition of Sana, strengthening its AI-driven learning and employee development capabilities. The deal enhances Workday’s human capital management platform, enabling more personalized training, faster upskilling and improved workforce engagement for customers. This will likely get reflected in the upcoming quarters.

For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $2.52 billion, suggesting an increase from the year-ago quarter’s reported figure of $2.21 billion. The consensus estimate for adjusted earnings per share is pegged at $2.3, indicating an increase from $1.92 reported in the prior year.

Our proven model does not conclusively predict an earnings beat for Workday for the fiscal fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here.

WDAY’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.