
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
The analysis of Workday's recent financial performance highlights several positive indicators contributing to a favorable outlook on the stock. Notably, the company's new annual contract value (ACV) for the Recruiting Agent nearly doubled quarter-over-quarter, showcasing significant growth in their core recruiting solutions, while full-suite adoption from new clients represents over 30% of new business. Additionally, the planned increase in non-GAAP operating margins to 28% for FY26, coupled with a subscription revenue growth target of approximately 15%, underscores Workday's commitment to balancing profitability with long-term growth and enhanced competitive positioning in the industry.
Bears say
Workday's financial outlook includes a subscription revenue guidance of $2.05 billion for F1Q25, representing a modest 13% year-over-year growth and falling short of consensus expectations. The company is maintaining its full-year FY26 revenue guidance at $8.8 billion, although concerns regarding a potential slowdown in growth have surfaced, evidenced by a 7% decline in new annual contract value (ACV) year-over-year. Additionally, the FY26 operating cash flow guidance of $2.75 billion is below market consensus, compounded by significant cash outflows related to restructuring, indicating potential challenges in maintaining profitability and growth.
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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