Workday Inc. (WDAY) 10-K Red Flags
Risk signals extracted deterministically from Workday Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (14)
- Material weakness in internal controls: The term "material weakness" "internal control" appears in 5 recent filing(s) (vs 8 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 4.24x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Goodwill is 32% of total assets: Goodwill of $5.23B represents a large share of the balance sheet. If acquired businesses underperform, a non-cash impairment charge could materially impact earnings. Monitor segment performance and acquisition integration metrics.
- R&D intensity declining: R&D as % of revenue fell from 31.1% to 28.0%. This may signal reduced innovation investment — potentially impacting long-term competitive position. Compare with peer R&D trends.
- NEW: Off-balance sheet arrangements: Off-balance sheet arrangements appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: 1 positive signal(s) versus 1 risk signal(s). The filing exhibits more constructive indicators than concerns, though individual risk factors should still be monitored.
- 6 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 1 new risk-language term(s) detected in filing text: Off-balance sheet arrangements.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Composite risk: Elevated.
- Leverage debt/equity 0.45 (moderate).
- Material weakness in internal controls: The term "material weakness" "internal control" appears in 5 recent filing(s) (vs 8 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 4.24x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
Filings & ownership
- Latest annual report (10-K) filed Mar 6, 2026.
- Latest quarterly report (10-Q) filed May 22, 2026.
- 7 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Workday Inc.; broad institutional reporting.
- Recent filers include MAPLELANE CAPITAL, LLC, Luxor Capital Group, LP, Modern Wealth Management, LLC.
- 20 recent 13G passive institutional ownership notices.
Full WDAY analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
View full report →Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.