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 (16)
- NEW: Material weakness in internal controls in latest filing: The term "material weakness" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 55 filing(s).
- Operating cash flow exceeds net income: OCF is 1.56x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Deferred revenue growing — future revenue visibility: Deferred revenue grew +41.3% to $1.09B, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
- 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 285.2% to 213.0%. This may signal reduced innovation investment — potentially impacting long-term competitive position. Compare with peer R&D trends.
- NEW: Restructuring: Restructuring appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
- 6 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 3 new risk-language term(s) detected in filing text: Material weakness in internal controls, Restructuring, Off-balance sheet arrangements.
- Price $135.40 — downtrend (below 200-DMA); 1-month momentum negative.
- RSI(14) 54.63.
- Composite risk: Elevated.
- Leverage debt/equity 0.45 (moderate).
- NEW: Material weakness in internal controls in latest filing: The term "material weakness" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 55 filing(s).
- Operating cash flow exceeds net income: OCF is 1.56x 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.
Full WDAY analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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