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Workday’s modelled fair value holds steady at US$179.22, with no shift in the central price target despite updated assumptions in the valuation model. This stability comes as Street research turns more cautious overall, with several firms cutting targets or moving to Neutral or Hold, while others highlight potential upside from AI related execution and long term investments. As you read on, you will see how these mixed signals fit together and how to keep track of the evolving story around the stock.
Stay updated as the Fair Value for Workday shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Workday.
What Wall Street Has Been Saying 🐂 Bullish Takeaways
Several firms, including Deutsche Bank, Oppenheimer, Mizuho, BMO Capital and Cantor Fitzgerald, still rate the stock positively even after lowering price targets. This points to ongoing interest in the long term opportunity despite revised forecasts.
Oppenheimer, BTIG, Guggenheim and Wells Fargo highlight Workday’s AI related efforts. BTIG and Guggenheim focus on potential AI monetization and growth, while Wells Fargo and Cantor Fitzgerald cite AI traction and positioning as reasons to maintain constructive views.
Rosenblatt’s upgrade to Buy with a US$180 target, together with positive comments from Wells Fargo and Baird on disruption risk and AI fears, indicates that some analysts view recent share price moves and sector pressure as creating a more attractive entry point.
🐻 Bearish Takeaways
Citi, UBS, DA Davidson, Goldman Sachs, Rothschild & Co Redburn and TD Cowen have Neutral or Hold ratings with lower targets. They point to decelerating sales trends, mixed demand checks, and what Goldman calls a transitional period that may take time to play out.
Jefferies, Evercore ISI, Citizens and TD Cowen flag execution and leadership risk after CEO changes and a shift toward AI investment. Jefferies and Evercore ISI explicitly lower medium term expectations and warn that near term catalysts may be limited.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives!
NasdaqGS:WDAY 1-Year Stock Price Chart
See how Workday’s fair value stacks up across multiple valuation models — not just analyst targets.
What’s in the News
Co founder Aneel Bhusri is set to return as CEO on February 6, 2026, while current CEO Carl Eschenbach will step down and remain as strategic advisor. The company framed this as continuity for its AI focused direction.
Workday issued fiscal 2027 guidance, calling for subscription revenue of US$2.335b in Q1 2027 and US$9.925b to US$9.950b for the full year, with stated growth of 13% for the quarter and 12% to 13% for the year.
The company completed two share repurchase tranches, buying back 9,382,713 shares for about US$2.10b under authorizations announced in May and September 2025.
Workday rolled out Sana from Workday worldwide and announced new integrations and partnerships, including QGenda, Insperity HRScale, Exclaimer, AppZen and MRI Software, to extend its HR and finance use cases across sectors.
Story Continues
How This Changes the Fair Value For Workday
Fair value remains at US$179.22, with no adjustment to the central valuation estimate.
Revenue growth assumption is about 11.07%, in line with prior expectations.
Net profit margin assumption is about 15.76%, indicating a stable longer term margin outlook in the model.
Future P/E multiple is 25.66x, compared with 25.61x previously.
Discount rate is 8.85%, compared with 8.77% previously.
Never Miss an Update: Follow The Narrative
Narratives link a company’s business story to a financial forecast and fair value, so you can see how product moves, leadership changes and market conditions connect to the numbers. They update automatically when new information comes through, so the story you are following stays current.
Head over to the Simply Wall St Community and follow the Narrative on Workday to stay up to date on:
How adoption of AI powered HR and finance products, plus acquisitions such as Paradox and Flowise, feed into cross sell and upsell opportunities and higher average contract values.
What expansion into financial management, federal government, and global markets like the UK, Germany, Japan and India could mean for revenue diversity and multi year backlog.
Key risks around intensifying competition from AI focused SaaS entrants and incumbents, rising regulatory and data privacy demands, and the profit impact of sustained R&D and M&A spending.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include WDAY.
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