
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday has demonstrated robust revenue growth, with subscription revenue increasing by 14.5% year-over-year, and total revenue projected to rise significantly under ASC 606, from $1.57 billion in FY2017 to $8.45 billion by FY2025, reflecting a shifting business model towards increased efficiency and partner collaboration. The company has also notably improved its financial health, with free cash flow surging from $228 million to an anticipated $2.19 billion, and operating margins enhancing from 14% to 26%, setting a strong foundation for future profitability. Furthermore, operational indicators suggest a favorable trend, with raised operating cash flow guidance and positive developments in international markets, positioning Workday to benefit from an eventual rebound in IT spending.
Bears say
Workday has experienced a significant slowdown in growth, with concerns that this trend could worsen, adversely impacting margins. The potential disruption posed by generative AI may commoditize its service offerings, challenging the company's business model and revenue monetization strategies. Additionally, the forecasted subscription revenue growth for FY27 presents a cautious outlook, emphasizing risks related to enterprise deal performance and international market traction.
This aggregate rating is based on analysts' research of Workday and is not a guaranteed prediction by Public.com or investment advice.
Workday (WDAY) Analyst Forecast & Price Prediction
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