Workday vs Zscaler
This page compares Workday and Zscaler, outlining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.
This page compares Workday and Zscaler, outlining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.
Why It's Moving
Workday Stock Heats Up as Analysts Reaffirm Buy Ratings Amid Steady Earnings Momentum
- Needham & Company reiterated a Buy rating on February 5, spotlighting Workday's recent quarterly beat with EPS of $2.32 versus expectations of $2.17, underscoring resilient growth in enterprise software.
- Zacks upgraded to Rank #2 (Buy) based on stable consensus estimates projecting 19.8% EPS growth to $2.30 and 14.1% revenue rise to $2.52 billion, signaling confidence in sustained demand.
- Workforce restructuring announcement pairs with impairment charges, reflecting strategic realignment to sharpen focus amid a hot market for analytics and planning tools like Prism Analytics.
Zscaler Stock Dives on AI Disruption Fears Despite Strategic Acquisition Push
- Anthropic's Claude Opus 4.6 and OpenAI's Frontier agent launches sparked fears of AI overtaking legacy seat-based models, driving a broad sell-off in cybersecurity stocks.
- Zscaler's buyout of SquareX aims to secure browsers like Chrome and Edge on unmanaged devices, extending zero trust protections without heavy agents amid rising AI-driven risks.
- Stock hit a new 1-year low near $163, down over 22% year-to-date, as sector-wide AI jitters outpaced company-specific positives like upcoming Q2 earnings on February 26.
Workday Stock Heats Up as Analysts Reaffirm Buy Ratings Amid Steady Earnings Momentum
- Needham & Company reiterated a Buy rating on February 5, spotlighting Workday's recent quarterly beat with EPS of $2.32 versus expectations of $2.17, underscoring resilient growth in enterprise software.
- Zacks upgraded to Rank #2 (Buy) based on stable consensus estimates projecting 19.8% EPS growth to $2.30 and 14.1% revenue rise to $2.52 billion, signaling confidence in sustained demand.
- Workforce restructuring announcement pairs with impairment charges, reflecting strategic realignment to sharpen focus amid a hot market for analytics and planning tools like Prism Analytics.
Zscaler Stock Dives on AI Disruption Fears Despite Strategic Acquisition Push
- Anthropic's Claude Opus 4.6 and OpenAI's Frontier agent launches sparked fears of AI overtaking legacy seat-based models, driving a broad sell-off in cybersecurity stocks.
- Zscaler's buyout of SquareX aims to secure browsers like Chrome and Edge on unmanaged devices, extending zero trust protections without heavy agents amid rising AI-driven risks.
- Stock hit a new 1-year low near $163, down over 22% year-to-date, as sector-wide AI jitters outpaced company-specific positives like upcoming Q2 earnings on February 26.
Investment Analysis
Workday
WDAY
Pros
- Workday's fiscal 2025 subscription revenue is projected to grow 17%, reaching $7.703 billion, indicating strong demand for its cloud applications.
- The company maintains a solid non-GAAP operating margin forecast of 25.5%, demonstrating efficient profitability in its core business.
- Analyst consensus strongly supports Workday with a 'Buy' rating and an average price target around $285, reflecting confidence in its growth prospects.
Considerations
- Workday's valuation remains very high with a price-to-earnings ratio over 100, suggesting the stock may be overvalued relative to earnings.
- The stock price has recently shown bearish technical sentiment and is forecasted to decline slightly in the near term.
- The company faces intense competition in the enterprise cloud applications market, which could pressure market share and growth.
Zscaler
ZS
Pros
- Zscaler is a leading provider in cloud security, a sector with strong growth driven by increasing cybersecurity demands.
- The company has demonstrated robust revenue growth and is expanding its customer base in both domestic and international markets.
- Zscaler benefits from a scalable cloud-native platform, which provides competitive advantages and operational efficiencies.
Considerations
- Zscaler operates in a highly competitive and rapidly evolving cybersecurity market, facing risks from larger incumbents and innovative startups.
- Its stock price can be volatile due to sensitivity to macroeconomic factors and tech-sector cycles.
- The company has yet to consistently generate positive net income, reflecting profitability challenges in its growth phase.
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Workday (WDAY) Next Earnings Date
Workday (WDAY)'s next earnings date is estimated for Tuesday, February 24, 2026. This report will cover the company's Q4 fiscal 2026 results, following the typical pattern of late-February releases after market close. The date remains an estimate, as Workday has not yet issued an official confirmation.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) has not confirmed its next earnings date, but estimates point to March 4, 2026, following the company's historical pattern of late February to early March releases for Q2 fiscal results. This report will cover the fiscal quarter ending January 2026. Investors should monitor for official confirmation, as dates can shift slightly based on internal schedules.
Workday (WDAY) Next Earnings Date
Workday (WDAY)'s next earnings date is estimated for Tuesday, February 24, 2026. This report will cover the company's Q4 fiscal 2026 results, following the typical pattern of late-February releases after market close. The date remains an estimate, as Workday has not yet issued an official confirmation.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) has not confirmed its next earnings date, but estimates point to March 4, 2026, following the company's historical pattern of late February to early March releases for Q2 fiscal results. This report will cover the fiscal quarter ending January 2026. Investors should monitor for official confirmation, as dates can shift slightly based on internal schedules.
Which Baskets Do They Appear In?
SaaS & Cloud Computing
Invest in the digital revolution that's reshaping how businesses operate worldwide. This collection of carefully selected stocks represents companies at the forefront of software innovation, cloud technology, and digital transformation.
Published: May 23, 2025
Explore BasketWhich Baskets Do They Appear In?
SaaS & Cloud Computing
Invest in the digital revolution that's reshaping how businesses operate worldwide. This collection of carefully selected stocks represents companies at the forefront of software innovation, cloud technology, and digital transformation.
Published: May 23, 2025
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