What changed
$WDAY — WATCHLIST 📊 | 6 MONTHS THESIS
🧭 Conviction: MED
Workday, Inc. provides enterprise cloud applications in the United States and internationally.
🎯 FQ1 FY2027 (ends Apr) | reported May 21 | Rev $2.5B | EPS $2.66 vs $2.52 🟢 | Margin 13.3%
💡 The market is pricing in continued growth deceleration, as reflected in the low multiple. The beat was modest and likely priced in; my variant view is that consensus is more accurate than the bulls think, leaving little room for positive repricing.
🏢 Business Quality: 7 — dominant enterprise SaaS platform for HCM/finance with sticky recurring revenue, but growth maturity and competitive pressure limit upside./10
📊 Valuation: Mixed: non-GAAP P/E 12.2x looks cheap vs. sector (20–30x), but GAAP P/E is 150x and FCF yield is ~2%, making it expensive on cash-based metrics.
🔮 Catalyst: Next quarterly report (Q2 FY2027, expected late Aug 2026)
⚖️ Watchlist: The beat and single-digit P/E look tempting, but a shrinking backlog warns of a value t