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 Surges on Strong FY2026 Results and CEO Leadership Transition
- Subscription revenues hit $8.833 billion for fiscal 2026, growing 14.5% annually, with the company expanding its customer base to include Boston Children's Hospital, State of New York Unified Court System, and major expansions with Accenture, Anthropic, and eBay
- CEO Aneel Bhusri returned to lead the company after the compensation committee certified his performance stock unit award of 9,182 shares for the prior fiscal period, signaling leadership stability and renewed strategic focus
- Analyst consensus remains deeply bullish with 27 buy ratings and zero sell ratings, positioning the stock for potential significant appreciation as the company continues scaling its AI-powered workforce solutions platform
Zscaler Shares Struggle Despite Analyst Optimism as Price-Target Cuts Offset Growth Catalysts
- Analyst price-target cuts following fiscal Q2 2026 earnings have weighed on sentiment, offsetting earlier upgrades tied to an AI-security partnership with HCLTech and broader data-center security sector momentum
- The consensus Moderate Buy rating with a $267.92 average price target suggests analyst faith in the company's fundamentals, yet the market's 50%+ decline from the year's peak indicates persistent investor skepticism about near-term execution or macro headwinds
- The stock's sharp pullback from multi-year highs reflects a broader rotation in cybersecurity and AI-infrastructure names, signaling that growth narratives alone are insufficient to support elevated valuations in the current rate environment
Workday Stock Surges on Strong FY2026 Results and CEO Leadership Transition
- Subscription revenues hit $8.833 billion for fiscal 2026, growing 14.5% annually, with the company expanding its customer base to include Boston Children's Hospital, State of New York Unified Court System, and major expansions with Accenture, Anthropic, and eBay
- CEO Aneel Bhusri returned to lead the company after the compensation committee certified his performance stock unit award of 9,182 shares for the prior fiscal period, signaling leadership stability and renewed strategic focus
- Analyst consensus remains deeply bullish with 27 buy ratings and zero sell ratings, positioning the stock for potential significant appreciation as the company continues scaling its AI-powered workforce solutions platform
Zscaler Shares Struggle Despite Analyst Optimism as Price-Target Cuts Offset Growth Catalysts
- Analyst price-target cuts following fiscal Q2 2026 earnings have weighed on sentiment, offsetting earlier upgrades tied to an AI-security partnership with HCLTech and broader data-center security sector momentum
- The consensus Moderate Buy rating with a $267.92 average price target suggests analyst faith in the company's fundamentals, yet the market's 50%+ decline from the year's peak indicates persistent investor skepticism about near-term execution or macro headwinds
- The stock's sharp pullback from multi-year highs reflects a broader rotation in cybersecurity and AI-infrastructure names, signaling that growth narratives alone are insufficient to support elevated valuations in the current rate environment
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's next earnings announcement is estimated to occur between May 21 and May 26, 2026, with some sources projecting May 20 or May 28, 2026 as the specific date. The company has not yet officially confirmed the exact date, but these estimates are based on historical earnings release patterns. This earnings report will cover Workday's fiscal 2027 first quarter ending April 30, 2026. Investors should monitor the company's investor relations website for official confirmation of the precise announcement date.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) is scheduled to announce its next earnings report on May 28, 2026, covering the Q1 fiscal 2026 quarter. The company typically releases earnings after market close on the announced date. Based on historical patterns, analysts expect the company to report earnings per share in line with recent performance, which has consistently exceeded expectations. Investors should monitor the company's guidance and forward-looking statements during the earnings call for insights into future growth prospects.
Workday (WDAY) Next Earnings Date
Workday's next earnings announcement is estimated to occur between May 21 and May 26, 2026, with some sources projecting May 20 or May 28, 2026 as the specific date. The company has not yet officially confirmed the exact date, but these estimates are based on historical earnings release patterns. This earnings report will cover Workday's fiscal 2027 first quarter ending April 30, 2026. Investors should monitor the company's investor relations website for official confirmation of the precise announcement date.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) is scheduled to announce its next earnings report on May 28, 2026, covering the Q1 fiscal 2026 quarter. The company typically releases earnings after market close on the announced date. Based on historical patterns, analysts expect the company to report earnings per share in line with recent performance, which has consistently exceeded expectations. Investors should monitor the company's guidance and forward-looking statements during the earnings call for insights into future growth prospects.
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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