
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday's fourth quarter subscription revenue demonstrated a strong year-over-year growth of 15.7%, reaching $2.36 billion, which exceeded company guidance and reflects positive momentum despite some one-time revenue contributions. The company's proactive management strategy has enabled an improvement in margin performance while continuing to invest in critical growth areas, suggesting a sustainable path forward. Additionally, the strength in new customer acquisitions, particularly in Financials and international markets, alongside ongoing innovation, positions Workday for high-teens revenue growth in the coming years, further enhancing its competitive stance against traditional legacy providers.
Bears say
The outlook for Workday's stock is negatively influenced by management's guidance of a decline in first-quarter subscription revenue, projecting a 1.1% quarter-over-quarter decrease and indicating potential issues with deferred deals impacting financial performance. Additionally, the company's full-year free cash flow growth forecast of 15% falls short of market expectations, further reflecting weaker-than-anticipated growth prospects. Workday’s revised FY27 subscription growth guidance of 12-13% suggests a reduction in anticipated revenue, contributing to a declining valuation multiple that aligns with concerns over competitive pressures in the industry.
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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