Workday (NASDAQ:WDAY) Given New $210.00 Price Target at TD Cowen

Key Points

• TD Cowen lowered Workday’s price target to $210 from $220 and maintained a “hold” rating, implying about 3.46% upside from the stock’s $202.98 price. The broader analyst consensus is also “hold,” with an average target of $204.49.
• Workday reported quarterly results above expectations, with EPS of $2.75 versus the $2.61 consensus and revenue of $2.65 billion, up 12.8% year over year.
• Forward guidance remains a concern: Fiscal 2027 revenue guidance of $9.9 billion to $10.0 billion is below analyst expectations, contributing to mixed analyst views despite strong earnings and growing AI-related demand.

Workday (NASDAQ:WDAY - Get Free Report) had its price target lowered by equities research analysts at TD Cowen from $220.00 to $210.00 in a report issued on Friday,Benzinga reports. The firm presently has a "hold" rating on the software maker's stock. TD Cowen's target price would indicate a potential upside of 3.46% from the stock's current price.

Other analysts have also issued research reports about the stock. Barclays boosted their target price on shares of Workday from $200.00 to $224.00 and gave the company an "overweight" rating in a research note on Friday. Capital One Financial set a $219.00 price target on shares of Workday and gave the company an "equal weight" rating in a report on Friday. Stifel Nicolaus set a $160.00 price objective on shares of Workday in a research report on Friday. Sanford C. Bernstein increased their price objective on shares of Workday from $216.00 to $238.00 and gave the stock an "outperform" rating in a research note on Friday. Finally, The Goldman Sachs Group cut their target price on shares of Workday from $206.00 to $151.00 and set a "neutral" rating on the stock in a report on Tuesday, May 26th. Twenty analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $204.49.

Workday Stock Performance

Shares of WDAY traded up $9.41 during mid-day trading on Friday, hitting $202.98. The stock had a trading volume of 2,155,078 shares, compared to its average volume of 5,071,383. Workday has a fifty-two week low of $110.36 and a fifty-two week high of $249.85. 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 cap of $50.14 billion, a PE ratio of 63.43, a PEG ratio of 2.03 and a beta of 1.08. The company's fifty day simple moving average is $155.95 and its two-hundred day simple moving average is $140.36.

Workday (NASDAQ:WDAY - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The software maker reported $2.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.61 by $0.14. Workday had a return on equity of 14.75% and a net margin of 8.60%.The business had revenue of $2.65 billion for the quarter, compared to analyst estimates of $2.64 billion. During the same period in the prior year, the company posted $2.21 EPS. The business's revenue was up 12.8% compared to the same quarter last year. On average, equities analysts expect that Workday will post 5.38 earnings per share for the current year.

Insider Transactions at Workday

In other Workday news, CFO Zane Rowe sold 6,000 shares of the business's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $143.70, for a total transaction of $862,200.00. Following the completion of the transaction, the chief financial officer directly owned 288,460 shares of the company's stock, valued at $41,451,702. The trade was a 2.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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, CAO Mark S. Garfield sold 918 shares of the company's stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $142.19, for a total transaction of $130,530.42. Following the completion of the transaction, the chief accounting officer owned 73,718 shares of the company's stock, valued at approximately $10,481,962.42. This trade represents a 1.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 875,020 shares of company stock worth $113,938,503 over the last 90 days. Corporate insiders own 18.64% of the company's stock.

Institutional Trading of Workday

Several hedge funds have recently added to or reduced their stakes in the business. Rakuten Securities Inc. acquired a new position in shares of Workday during the second quarter valued at $25,000. Measured Wealth Private Client Group LLC bought a new position in Workday in the 3rd quarter valued at about $26,000. DT Investment Partners LLC bought a new position in Workday in the 4th quarter valued at about $27,000. LRI Investments LLC acquired a new position in Workday during the 4th quarter valued at about $29,000. Finally, JPL Wealth Management LLC bought a new stake in shares of Workday during the 3rd quarter worth about $30,000. Institutional investors own 89.81% of the company's stock.

Trending Headlines about Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Strong Q2 results: Workday reported adjusted earnings of $2.75 per share, above the $2.61 consensus estimate, while revenue rose 12.8% year over year to $2.649 billion. Subscription revenue increased 13.9% to $2.471 billion, and net income rose sharply to $632 million from $228 million a year earlier. Workday Fiscal 2027 Second-Quarter Results
• Positive Sentiment: AI adoption is supporting demand: Management said AI-related offerings accounted for more than 25% of new contract value, reinforcing the company’s positioning as an enterprise AI platform for HR, finance, and IT. Workday Q2 Earnings Call Highlights
• Positive Sentiment: Capital returns and analyst support: Workday authorized a $4 billion share-repurchase program. Following the earnings report, BMO raised its target to $230 with an “outperform” rating, while Needham raised its target to $230 with a “buy” rating; KeyCorp and Monness Crespi also lifted their targets. Analysts Revise Workday Forecasts
• Neutral Sentiment: Analyst views remain mixed: DA Davidson and Piper Sandler raised their targets to $190 but retained neutral ratings, while Cantor Fitzgerald reduced its target to $205 despite maintaining an overweight rating. This indicates optimism about valuation recovery but limited consensus on near-term upside.
• Negative Sentiment: Forward growth guidance is a concern: Workday’s fiscal 2027 revenue outlook of $9.9 billion to $10.0 billion is below the roughly $10.7 billion analyst consensus, and third-quarter revenue guidance also trails expectations. Investors are concerned that another guidance reduction could offset the quarterly beat. Workday Outlook Meets Estimates

About Workday

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.

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