
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday is a leading company in cloud Enterprise Resource Planning (ERP) solutions, with strong penetration in the office of the Chief Human Resources Officer and the office of the Chief Financial Officer. Its recent CEO change may have caused some short-term conservatism in its guidance, but with a large TAM, continued cloud adoption and growing AI capabilities, it presents compelling long-term growth opportunities. Currently trading at just 7.7x FY28E EV/FCF and with strong revenue and margin expansion potential, the risk-reward for investors is favorable.
Bears say
Workday is facing a few fundamental challenges which explain my negative outlook. Firstly, their subscription revenue has slowed down due to lower subscription growth and operating margin guidance for FY27. Secondly, there is potential for their business model to be disrupted by generative AI, which could reduce customer headcount and negatively affect their pricing structure. Lastly, the company has recently issued lower guidance for subscription and FCF growth, indicating a focus on investments rather than immediate profitability. These factors, combined with potential market and macroeconomic conditions, could hinder the company's growth and pose risks for investors.
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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