Workday Eyes 14.1% Q4 Revenue Growth After 12.6% Increase Last Quarter
Workday delivered $2.43 billion in revenue last quarter, a 12.6% increase that topped analysts’ billings and EBITDA estimates. For Q4, the market forecasts 14.1% revenue growth while shares have slid 27.9% this month versus a 17.1% peer decline, with an average price target of $241.43.
1. Strong Q3 Results
Workday reported $2.43 billion in revenue for Q3, marking a 12.6% year-on-year increase that outpaced analysts’ projections for billings and EBITDA. The company’s consistent overperformance underscores its resilience in enterprise software demand.
2. Q4 Revenue Forecast
Analysts project 14.1% revenue growth for Q4, roughly matching the 15% gain achieved in the same quarter last year. Estimate revisions have been minimal over the past month, indicating confidence in the company’s growth trajectory.
3. Peer Performance Context
In the finance and HR software segment, Bill.com posted 14.4% revenue growth with a 3.7% beat, and Workiva delivered 19.5% growth topping estimates by 1.6%, driving respective share rallies of 37.2% and 3.6%. These results provide a benchmark for Workday’s upcoming report.
4. Share Movement and Valuation
Workday shares have declined 27.9% over the past month, outpacing an average 17.1% drop among peers. Analysts maintain an average price target of $241.43, suggesting significant upside from current levels.