
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday's recent financial performance indicates a strong upward trajectory, highlighted by a nearly doubling of new annual contract value (ACV) from Q3 to Q4, as well as a robust increase in the average selling price (ASP) of its core Recruiting solution. The company reported a noteworthy increase in full-suite adoption from new clients, contributing over 30% of new business during the quarter, alongside a strategic focus on improving operating margins, which are now projected to be 28% for FY26. Additionally, subscription revenue growth is anticipated to be approximately 15% for FY26, supported by a consistent 14% compound annual growth rate in core customers over the past four years, further enhancing Workday's competitive position in the software market.
Bears say
Workday's first quarter fiscal year 2025 subscription revenue guidance of $2.05 billion, representing a 13% year-over-year increase, came in slightly below consensus expectations, indicating potential challenges in meeting growth forecasts. Additionally, the company's New Annual Contract Value (ACV) experienced a 7% decline year-over-year, raising concerns about future revenue performance, especially given that FY26 operating cash flow guidance was also below market expectations. Furthermore, significant cash outflows related to restructuring further contributed to a cautious outlook, underscoring the challenges Workday faces in achieving sustained growth amid market pressures.
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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