Why Workday (WDAY) is a Top Growth Stock for the Long-Term

Zacks Investment Research highlights Workday Inc. (WDAY) as a potentially strong growth stock, citing its 'A' Growth Style Score and a projected 16% year-over-year earnings increase for the current fiscal year. The consensus earnings estimate for fiscal year 2026 has risen by $0.03 to $8.47 per share following upward revisions by two analysts in the last 60 days; WDAY also has a VGM Score of B and an average earnings surprise of 9.8%.

Analysis

Workday Inc. (WDAY), a provider of enterprise cloud applications for finance and human resources, is identified by Zacks Investment Research as a stock with notable growth attributes despite its current #3 (Hold) rating. The company exhibits a strong 'A' Growth Style Score, supported by a forecast of 16% year-over-year earnings growth for the current fiscal year. Further reinforcing this outlook, the Zacks Consensus Estimate for WDAY's fiscal 2026 earnings per share has increased by $0.03 to $8.47 over the past 60 days, driven by two upward analyst revisions. Workday has also demonstrated a pattern of exceeding expectations, evidenced by an average earnings surprise of 9.8%. While the #3 (Hold) rank suggests a neutral short-term outlook according to the Zacks model, its 'B' VGM Score and strong 'A' Growth Score meet Zacks' criteria for identifying potential upside, positioning WDAY as a stock for investors to watch closely for sustained performance.

Key Decisions for Investors

• Growth-oriented investors should note WDAY's 'A' Growth Style Score and its projected 16% current-year earnings growth, alongside positive FY2026 estimate revisions, as key positive indicators.
• Investors should weigh the Zacks #3 (Hold) rating against the strong 'A' Growth and 'B' VGM scores, potentially considering WDAY for a portfolio but exercising more diligence than for a #1 (Strong Buy) or #2 (Buy) ranked stock.
• Continue to monitor WDAY's earnings reports for sustained outperformance, as indicated by its 9.8% average earnings surprise, and watch for any changes in analyst earnings estimates or the overall Zacks Rank to gauge shifts in its investment profile.