Workday, Inc.

HCM/financials SaaS leader with huge free cash flow and strong growth; GAAP margins still modest.

Strengths

• Huge free cash flow — FCF $2.78B (100th), FCF margin 29.1%
• Strong growth and earnings — revenue +13.1%, net income +31.7% (88th)
• Improving profitability — per 10-K

Risks

• Modest GAAP margins — operating margin 7.5% on stock comp
• Competitive HCM/ERP market — per 10-K
• Macro-sensitive enterprise deal cycles — per 10-K

Notable findings

• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC, TIGER GLOBAL MANAGEMENT LLC, Bridgewater Associates, LP
• Exec changeRecent 8-K item 5.02 8-K ↗
• Customer concentration~92% of revenue from one customer/distributor — Subscription services revenues accounted for approximately 92% of our total revenues for the fiscal year ended January 31, 2026, and represented 97% of our total unearned revenue as of January 31, 202
• ImpairmentRecent 8-K item 2.06 8-K ↗
• Strong balance sheetStrong balance sheet — $5.4B cash & investments
• Insider sellingInsider selling — 132 open-market sale(s) by 7 insider(s) (cluster of 7 insiders, ~$275M, last 6mo) Form 4 ↗
• Notable holderHeld by 5 notable fund(s): STATE STREET CORP, GOLDMAN SACHS GROUP INC, CITADEL ADVISORS LLC +2 more (as of 2026-03-31)
• New fund positionNotable fund(s) opened this quarter: RENAISSANCE TECHNOLOGIES LLC