
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday has demonstrated a significant shift in its revenue growth, with approximately 60% of this growth now coming from existing customers, up from 50% the previous year, indicating a strong performance in cross-selling initiatives. The company's Total Addressable Market (TAM) has expanded substantially, with an 18% increase to over $160 billion, highlighting the increasing demand for its solutions and potential for further growth. Additionally, Workday is set to enhance its operating margins by nearly 1,000 basis points from FY23 to FY26, showcasing an improving profitability trajectory alongside robust subscription revenue growth, particularly in its Human Capital Management and Financial Management segments.
Bears say
The analysis indicates a negative outlook for Workday's stock primarily due to potential pressures on customer retention that could arise from competitive positioning and operational issues. There are significant downside risks, including underperformance in large enterprise deals and limited traction in international markets, which could adversely affect revenue growth and overall financial stability. Additionally, despite a reduction in near-term subscription revenue growth guidance and potential concerns regarding reported revenue figures, the emphasis on strategic product announcements may not sufficiently mitigate investor concerns about long-term performance.
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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