
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday has demonstrated significant growth in subscription revenue, reporting a year-over-year increase of 14.5%, while strategically shifting professional services to partners to optimize operations. The company's revenue trajectory has been impressive, with total revenue anticipated to grow from $1.57 billion in FY2017 to $8.45 billion by FY2025, alongside a substantial improvement in free cash flow from $228 million to $2.19 billion, and operating margins enhancing from 14% to 26%. Additionally, the company has been proactive in share repurchases, allocating $803 million in the recent quarter with plans for an additional $3.6 billion by the end of FY27, further reinforcing a positive outlook for long-term financial strength.
Bears say
Workday's outlook is negatively impacted by materially slowing growth and the potential disruption from generative AI, which could commoditize its business offerings and alter monetization strategies unfavorably. The company's reliance on achieving manageable revenue targets, combined with the risks of underperformance in large enterprise deals and market traction, raises concerns about its future financial performance. Additionally, future revenue forecasts suggest a trend of lower growth with higher earnings per share, indicating caution about sustaining robust financial health in an evolving market landscape.
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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