Workday Stock Down 43% Trades Under 15x Earnings Despite 18% Growth
Workday shares have fallen 43% from record highs to trade below 15 times next-year earnings estimates despite analysts projecting 18% revenue growth. Polen Capital sold its position in Q4 2025 citing decelerating revenue growth in both human capital management and its newer financial suite.
1. Jim Cramer Highlights Undervaluation
Jim Cramer noted that Workday’s stock has plunged 43% from its peak and now trades at under 15 times this year’s earnings estimates, even as analysts foresee an 18% revenue growth rate. He pointed to the company’s leading human capital management and corporate finance software as reasons it may be undervalued.
2. Polen Capital Exits Over Slowing Growth
In its Q4 2025 investor letter, Polen Capital disclosed it sold its entire Workday position, citing a deceleration in revenue growth. The firm noted that the mature core HCM business faces cyclical headwinds while the newer financials suite is expanding slower than expected.
3. Technical Oversold Conditions Create Dip Opportunity
Workday shares dropped 25.7% over four weeks, entering technically oversold territory, which some traders view as exhaustion of heavy selling pressure. This has coincided with a consensus among analysts to revise earnings estimates higher, fueling discussion of a potential trend reversal.
4. Bear Market Valuation Fuels Bargain Discussions
Since reaching a record high of $310 in 2024, Workday stock has slid to around $155, its lowest level in over a year. This bear market decline has prompted some investors to label the shares a bargain as software stock valuations continue to adjust.