WDAY - Workday's Revised Guidance: Why The Sell-Off Appears Overblown
2024-05-24 04:17:04 ET
Summary
- Workday's stock dropped 10% after updating its guidance and reporting Q1 2025 results, but the market is overreacting.
- Despite a slight deceleration in backlog, Workday's fundamentals, including strong financials and consistent free cash flow growth, support a bullish outlook.
- Workday is expected to achieve $2.2 billion in non-GAAP operating profits this year, reflecting a 25% operating margin, and has a solid growth potential with a 17% compound annual growth rate for subscription revenue.
Investment Thesis
Workday ( WDAY ) updated its guidance together with its fiscal Q1 2025 results. And the stock dropped 10%. That's the headline....
Workday's Revised Guidance: Why The Sell-Off Appears Overblown