Workday Inc. (NASDAQ:WDAY)

Gross profit margin

The gross profit margin demonstrated a steady upward trend over the observed time frame. Starting from approximately 70.48%, it progressively increased to about 75.64%. This indicates consistent improvement in the company's core profitability, reflecting effective management of production or service delivery costs relative to revenue.

Operating profit margin

The operating profit margin showed a significant recovery over the periods analyzed. Initially, the margin was deeply negative at around -13.7%, but it gradually improved, crossing into positive territory around the period of October 2023. From there, it continued an upward trajectory, reaching approximately 6.73% by the end of the data set. This improvement suggests enhanced control over operating expenses and possibly revenue growth or operational efficiencies.

Net profit margin

The net profit margin displayed volatility but an overall positive trend by the end of the series. The margin began with a negative value near -13.68%, fluctuated with intermittent declines and recoveries, and notably peaked at 19.87% in January 2024 before stabilizing around 6.95% in the latest periods. The exceptional peak indicates a possible one-time gain or accounting adjustment, after which profitability settled to a solid positive range.

Return on equity (ROE)

Return on equity mirrored the pattern observed in net profit margin. Initially negative at -20.09%, ROE improved steadily to reach a high point of approximately 18.79% in early 2025, before tapering to around 7.23% in the final quarter. This recovery signifies enhanced shareholder value generation, likely driven by improved net income and efficient equity use.

Return on assets (ROA)

Return on assets followed a similar trajectory to ROE but at lower magnitudes, starting at approximately -7.23% and improving to nearly 9.87% by early 2025. Subsequent fluctuations brought the ROA to around 3.62% in the last reported period. These changes suggest better asset utilization and overall profitability improvements, albeit with some variability.

Summary

Overall, the financial ratios indicate a company that has transitioned from a challenging profitability position towards consistent and improved financial health. The steady rise in gross profit margin combined with the marked recovery in operating and net profit margins underscores improved operational efficiency and financial management. High peaks in profitability ratios point to potential extraordinary items or developments, while recent stabilization suggests sustainable operational improvements. The enhancements in ROE and ROA corroborate the effective use of equity and assets to generate earnings, aligning with the positive margin trends.

Revenue Trends

The company's revenues have shown a consistent upward trend over the entire period under review. Starting at approximately $1,018 million in April 2020, revenues increased steadily each quarter, reaching $2,432 million by October 2025. This growth reflects a strong and sustained increase in the company's sales activity over the nearly six-year period.

Gross Profit Trends

Gross profit figures have mirrored the revenue growth pattern, rising from $713 million in April 2020 to $1,841 million by October 2025. The gross profit increased steadily across all the quarters, indicating effective management of the cost of goods sold relative to sales. The gap between gross profit and revenues widened slightly over time, signaling improved profitability on a gross basis.

Gross Profit Margin Analysis

The gross profit margin showed a gradual, consistent improvement, increasing from approximately 70.48% in April 2020 to around 75.64% by October 2025. This indicates that the company has been able to enhance its cost efficiency or adjust its pricing strategy to increase the proportion of revenues retained after direct costs. The sustained margin improvement over multiple years suggests a strengthening operational efficiency or a favorable product mix.

Overall Financial Performance

The data indicate a solid performance trajectory with steady revenue growth complemented by increasing gross profit and expanding gross margin. This combination suggests that the company has not only grown in size but also improved in profitability, maintaining a robust position through efficient cost management and possibly pricing power. No significant fluctuations or deteriorations are visible, pointing to stability and consistent positive momentum in operational performance.

The financial data reveals several noteworthy trends over the analyzed periods. Revenues exhibit a consistent upward trajectory, growing steadily from approximately 1,018 million US dollars in April 2020 to about 2,432 million US dollars by October 2025. This continuous increase reflects sustained business expansion and robust sales performance.

Operating income (loss) demonstrates considerable volatility during the initial quarters but shows marked improvement over time. Initially, the company experienced significant operating losses, with the lowest point around -144 million US dollars in April 2020. However, moving forward, losses reduced substantially, transitioning into positive territory starting around October 2021. From that point onwards, operating income generally increased, peaking notably at 259 million US dollars in October 2025. This trend suggests effective cost management and improved operational efficiency.

The operating profit margin supports these observations, as it builds progressively from negative double-digit percentages in early 2020 (around -13.7%) to positive margins beginning in late 2022. The margin improves steadily, reaching over 6% by October 2025. This upward shift indicates enhanced profitability relative to revenues, underscoring the company's successful transformation from operating losses to sustainable profits.

Revenues

Show a consistent growth pattern, nearly doubling over the analyzed time frame, reflecting expanding business operations and increasing market demand.

Operating Income (Loss)

Initially characterized by losses, the metric gradually improved, turning positive in late 2021, and thereafter demonstrating significant growth, signifying operational stabilization and improving earnings quality.

Operating Profit Margin

Transitions from negative to positive values, indicating an evolution in the company's profitability and cost structure management, with margins improving steadily to over 6% by the end of the period.

Overall, the data portrays a company undergoing a positive financial turnaround, transitioning from losses to robust profitability while maintaining a steady increase in revenues. The improving operating profit margin corroborates the efficiency gains achieved, reinforcing the positive outlook for future financial performance if current trends continue.

The financial data indicates several notable trends across the reported periods, reflecting changes in profitability, revenue growth, and margin dynamics.

Net Income (Loss)

Net income exhibited high volatility over time, initially demonstrating significant losses, including a peak loss of -158 million USD in April 2020. Subsequently, the company experienced a transition from losses to positive earnings, with net income turning positive intermittently from July 2021 onward. A particularly strong upward trend occurred starting January 2024, culminating in a substantial net income of 1188 million USD, followed by consistently positive figures ranging between 68 and 252 million USD in subsequent quarters. This pattern suggests an overall improvement in profitability over time, with a marked acceleration in earnings beginning in early 2024.

Revenues

Revenues displayed steady and consistent growth throughout the entire period. Starting at 1018 million USD in April 2020, revenues increased quarter-over-quarter without any recorded declines, reaching 2432 million USD by October 2025. This represents more than a doubling of revenue over the period analyzed, indicating robust business expansion and effective market penetration or sales growth.

Net Profit Margin

The net profit margin showed considerable fluctuation in the initial years, with negative margins prevalent from April 2020 through January 2023, reflecting losses relative to revenues. Margins gradually approached breakeven in the latter part of this timeframe, turning slightly positive around October 2021 and January 2022 but slipping back to negative figures in some quarters. Beginning January 2024, the profit margin rose sharply, peaking near 19.87% and maintaining strong, positive margins above 5% thereafter. This shift marks a significant improvement in profitability efficiency and cost management relative to revenue.

Overall Insights

The data paints a picture of a company transitioning from periods of financial challenge into sustained profitability and growth. The consistent revenue increase combined with the turnaround from negative to positive net income and margins suggests successful operational scaling, improved cost controls, or enhanced revenue quality. The sharp improvement in profitability metrics starting around early 2024 may reflect strategic changes, such as product mix optimization, increased operational leverage, or other business initiatives leading to better financial outcomes.

Net Income (Loss)

The net income shows significant volatility over the observed periods. Initially, the company experienced substantial losses, with a peak negative value of -158 million USD in April 2020. These losses gradually decreased through late 2020 and early 2021, with occasional positive net income such as 106 million USD in July 2021. However, the income fluctuated between gains and losses through 2022 and early 2023. Starting in mid-2023, a notable upward trend begins, highlighted by a sharp increase resulting in a peak net income of 1188 million USD in January 2024. Following this peak, net income stabilizes at positive values, remaining between 68 million USD and 252 million USD through late 2025, indicating improved profitability and recovery from earlier losses.

Stockholders’ Equity

Stockholders’ equity shows a steady and consistent upward trend across all periods. Beginning at 2602 million USD in April 2020, equity increases progressively through each quarter, reaching a maximum of 9172 million USD in July 2025. There is a minor decline observed towards the last quarter, ending at 8879 million USD in October 2025, but overall the growth in equity reflects continuous capital accumulation and retention of earnings or equity financing efforts supporting the company’s financial structure.

Return on Equity (ROE)

Return on equity exhibited negative values at the start of the period, indicating inefficiency in generating shareholder returns relative to equity, with the lowest ROE recorded at -20.09% in April 2020. There is a gradual improvement throughout 2020 and 2021, moving closer to breakeven and then turning positive around late 2021 and early 2023. From 2023 onwards, ROE improves significantly, peaking at 18.79% in October 2024, which corresponds with the period of substantial net income increase. This suggests enhanced operational performance and profitability. However, a slight decline in ROE is observed after this peak, settling between 5.46% and 7.23% by late 2025, which still reflects a positive return environment relative to earlier years.

The financial data reveals several important trends in profitability, asset growth, and returns over the periods examined. The net income figures demonstrate significant volatility, with periods of loss followed by recovery and growth. Initially, the company experienced substantial losses, with the lowest net income recorded at -158 million USD in April 2020. Over time, net income progressively improved, turning positive in mid-2021 and showing significant spikes in early 2024 and continuing upward through 2025. Notably, the net income peaks at 1188 million USD in January 2024, which is a considerable increase compared to previous quarters, before stabilizing at lower yet positive levels in subsequent periods.

Total assets displayed a consistent increasing trend throughout the timeframe, with growth from 7,228 million USD in April 2020 to a peak of 17,977 million USD in April 2025. Despite minor fluctuations in some quarters, the overall trajectory indicates sustained expansion of the company’s asset base, approximately doubling over five years. This steady increase in assets suggests ongoing investments or acquisitions supporting business growth.

The Return on Assets (ROA) ratio initially reflected negative returns indicative of net losses and inefficiency in asset utilization. ROA improved gradually from -7.23% in April 2020 to a positive 0.48% in October 2023. Following this turnaround, the ROA increased sharply to above 8% in early 2024 and remained strong thereafter, indicating more efficient use of assets to generate profits. Although there is a noticeable drop in ROA to around 3% in mid-2025, the ratio remains positive and shows signs of modest recovery towards the end of the recorded periods.

Profitability

Severe early losses transitioned to a positive earnings trend starting mid-2021, with a significant net income peak in early 2024, followed by sustained positive earnings though at lower levels than the peak.

Asset Growth

Total assets exhibited continuous growth, nearly doubling in size over the five-year span, indicating expansion and increased resource base.

Return on Assets (ROA)

ROA moved from negative values reflecting losses to positive and improving returns, peaking above 9% in early 2024, before stabilizing around 3% towards mid-2025.

Overall, the financial data points to a recovery phase culminating in strong profitability and efficient asset use around 2024, supported by sustained asset growth. The subsequent periods suggest a normalization of performance following the spike in earnings, with the company maintaining positive returns and a solid asset base.