
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday's subscription revenue exhibited strong growth of 14.5% year-over-year, while the company's shift towards partnering for professional services reflects a strategic realignment. The transition from ASC 605 to ASC 606 highlights a remarkable increase in total revenue from $1.57 billion to $8.45 billion, alongside an improvement in free cash flow from $228 million to $2.19 billion and an enhancement of operating margins from 14% to 26%. Additionally, the raised operating cash flow guidance for FY26 to $2.9 billion and significant share repurchase activities, amounting to $803 million in the quarter and a planned $3.6 billion by the end of FY27, further demonstrate Workday's commitment to returning value to shareholders amid their ongoing international expansion and modest growth in customer headcount.
Bears say
Workday has experienced a notable slowdown in growth, raising concerns about the sustainability of its financial performance and indicating potential further declines. The introduction of generative AI poses a risk to its business model by potentially commoditizing its offerings and altering customer value monetization unfavorably. Additionally, multiple downside risks, such as underperformance in large enterprise deals and decreased traction in international markets, contribute to an overall negative outlook for the company's future revenue and earnings projections.
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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