
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday's fourth-quarter subscription revenue experienced a year-over-year growth of 15.7%, reaching $2.36 billion, surpassing guidance and indicating strong demand for its services. The company demonstrated robust operational efficiency with improved margin performance, while also expanding its sales organization to capitalize on new business opportunities across various segments and international markets. Furthermore, a 15.8% year-over-year growth in the 12-month subscription backlog reflects healthy future revenue streams, supporting a positive long-term outlook for Workday.
Bears say
Workday's financial outlook is overshadowed by several concerning factors, including a guidance reduction for F1Q subscription revenue, now expected to be $2.355 billion, reflecting a sequential decline of 1.1% and indicating a shortfall attributed to delays in deal closures. Furthermore, the company's full-year free cash flow growth guidance has been adjusted down to 15%, falling short of consensus expectations of 16.8%, further signaling underperformance. The downward revision of subscription revenue growth for FY27, now projected at 12-13% rather than the previously higher estimate, coupled with a compressing valuation multiple to below 8x out-year EV/FCF, underscores increasing competitive challenges in the broader software market.
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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