Workday (NASDAQ:WDAY) Given New $205.00 Price Target at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald lowered Workday’s price target from $220 to $205 but maintained an “overweight” rating, implying roughly 5.9% upside from the reported $193.57 share price. The broader analyst consensus remains “Hold,” with a $196.03 average target.
• Workday exceeded quarterly expectations, reporting adjusted EPS of $2.75 versus the $2.61 consensus and revenue of $2.65 billion, up 12.8% year over year. Subscription revenue grew 13.9%, while AI offerings accounted for more than 25% of new contract value.
• Investors face a mixed outlook: Workday authorized an additional $4 billion share repurchase, but projected subscription-revenue growth near 11% for fiscal 2028 suggests continued deceleration, raising valuation concerns amid substantial insider selling.

Workday (NASDAQ:WDAY - Get Free Report) had its price objective dropped by analysts at Cantor Fitzgerald from $220.00 to $205.00 in a report issued on Friday,Benzinga reports. The firm presently has an "overweight" rating on the software maker's stock. Cantor Fitzgerald's price objective indicates a potential upside of 5.90% from the company's current price.

A number of other equities analysts also recently commented on the stock. Summit Redstone set a $275.00 price objective on shares of Workday in a research note on Wednesday, May 27th. Bank of America upped their target price on Workday from $140.00 to $205.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. CLSA assumed coverage on Workday in a research report on Monday, July 20th. They set an "underperform" rating and a $92.00 price target for the company. UBS Group raised their price target on Workday from $140.00 to $220.00 and gave the company a "neutral" rating in a research note on Friday, August 14th. Finally, Piper Sandler boosted their price target on Workday from $145.00 to $190.00 and gave the stock a "neutral" rating in a research report on Friday. Twenty equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $196.03.

Workday Price Performance

NASDAQ WDAY opened at $193.57 on Friday. The firm's 50 day moving average is $155.95 and its 200-day moving average is $140.36. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $47.81 billion, a PE ratio of 60.49, a price-to-earnings-growth ratio of 2.03 and a beta of 1.08. Workday has a 12-month low of $110.36 and a 12-month high of $249.85.

Workday (NASDAQ:WDAY - Get Free Report) last announced its earnings results on Thursday, August 27th. The software maker reported $2.75 EPS for the quarter, topping the consensus estimate of $2.61 by $0.14. The business had revenue of $2.65 billion during the quarter, compared to analysts' expectations of $2.64 billion. Workday had a net margin of 8.60% and a return on equity of 14.75%. The firm's revenue was up 12.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.21 earnings per share. Equities research analysts anticipate that Workday will post 5.38 earnings per share for the current fiscal year.

Insider Buying and Selling at Workday

In related news, insider Robert Enslin sold 5,374 shares of the company's stock in a transaction dated Sunday, July 5th. The shares were sold at an average price of $134.90, for a total transaction of $724,952.60. Following the completion of the sale, the insider owned 239,469 shares of the company's stock, valued at $32,304,368.10. This represents a 2.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Zane Rowe sold 6,000 shares of the stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $143.70, for a total transaction of $862,200.00. Following the sale, the chief financial officer owned 288,460 shares in the company, valued at $41,451,702. The trade was a 2.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 875,020 shares of company stock valued at $113,938,503 in the last three months. Corporate insiders own 18.64% of the company's stock.

Hedge Funds Weigh In On Workday

Hedge funds and other institutional investors have recently made changes to their positions in the company. Rakuten Securities Inc. acquired a new stake in shares of Workday during the 2nd quarter worth approximately $25,000. Measured Wealth Private Client Group LLC acquired a new position in Workday during the third quarter valued at approximately $26,000. JPL Wealth Management LLC acquired a new position in Workday during the third quarter valued at approximately $30,000. DT Investment Partners LLC bought a new stake in Workday during the fourth quarter worth $27,000. Finally, LRI Investments LLC acquired a new stake in shares of Workday in the 4th quarter valued at $29,000. 89.81% of the stock is currently owned by institutional investors and hedge funds.

Workday News Summary

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday reported fiscal Q2 adjusted EPS of $2.75, above the roughly $2.61–$2.62 consensus, while revenue reached $2.649 billion, slightly exceeding estimates and increasing 12.8% year over year. Workday Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Subscription revenue climbed 13.9% to $2.471 billion. Management also said AI-related offerings represented more than 25% of new contract value, reinforcing the company’s positioning in enterprise AI for HR, finance and IT. Workday Fiscal 2027 Second-Quarter Results
• Positive Sentiment: Profitability was a major strength: net income reportedly rose to $632 million from $228 million a year earlier, while operating profit increased 26.2%. Workday also authorized an additional $4 billion share repurchase, which could support per-share results and signal confidence in cash generation. Workday Reports Higher Profit and Revenue
• Positive Sentiment: Canaccord Genuity raised its price target to $225, adding to bullish sentiment following the earnings beat. Canaccord Raises Workday Price Target
• Neutral Sentiment: Management’s outlook broadly met expectations and targets at least two points of non-GAAP margin expansion, but investors are watching whether AI adoption can offset slower growth in the coming years. Workday Signals Future Growth and Margin Targets
• Negative Sentiment: Workday’s projected subscription-revenue growth near 11% for fiscal 2028 implies continued deceleration from current levels, raising valuation concerns for a stock trading at a premium earnings multiple. Workday Outlook Despite AI Demand
• Negative Sentiment: Recent insider activity was heavily weighted toward selling, including substantial sales by founder David Duffield. While such transactions may be planned, they can weigh on investor sentiment.

Workday Company Profile

Workday, Inc NASDAQ: WDAY is a provider of cloud-based enterprise applications focused on human capital management (HCM) and financial management. Founded in 2005 by Dave Duffield and Aneel Bhusri following their tenure at PeopleSoft, the company develops software-as-a-service solutions that help organizations manage workforce and financial processes in a unified, cloud-native environment. Workday's platform emphasizes continuous updates, data security, and a configurable architecture aimed at large and mid-sized enterprises.

The company's product portfolio centers on Workday Human Capital Management and Workday Financial Management, with additional offerings for payroll, talent management, workforce planning and analytics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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