William Blair Upgrades Workday (NASDAQ:WDAY) to Strong-Buy

Key Points

• William Blair upgraded Workday to “strong-buy,” adding to a generally positive analyst tone around the stock. The broader consensus remains Moderate Buy, with a MarketBeat average price target of $189.48.
• Workday rose 5.2% and recently reported stronger-than-expected quarterly results, with EPS of $2.66 and revenue of $2.54 billion, both ahead of estimates. Revenue climbed 13.5% year over year, and management lifted full-year non-GAAP operating margin guidance to 30.5%.
• Analyst opinions remain mixed despite the upbeat quarter, with some firms cutting price targets over valuation and execution concerns. At the same time, investors are watching Workday’s AI monetization and customer adoption trends, which analysts say are starting to contribute to contract value.

Workday (NASDAQ:WDAY - Get Free Report) was upgraded by investment analysts at William Blair to a "strong-buy" rating in a note issued to investors on Friday,Zacks.com reports.

Several other research firms have also weighed in on WDAY. Needham & Company LLC reduced their price target on shares of Workday from $300.00 to $180.00 and set a "buy" rating for the company in a research report on Friday. TD Cowen reaffirmed a "hold" rating on shares of Workday in a report on Friday. Citigroup reaffirmed a "market perform" rating on shares of Workday in a report on Friday. Mizuho lowered their target price on shares of Workday from $275.00 to $210.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 25th. Finally, Barclays raised shares of Workday from an "overweight" rating to a "buy" rating in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Workday presently has an average rating of "Moderate Buy" and a consensus price target of $189.48.

Workday Stock Up 5.2%

Shares of NASDAQ WDAY opened at $128.14 on Friday. The company has a market capitalization of $32.93 billion, a P/E ratio of 40.04, a price-to-earnings-growth ratio of 1.18 and a beta of 1.04. Workday has a 52-week low of $110.36 and a 52-week high of $257.09. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.32. The company's 50 day moving average price is $125.91 and its 200-day moving average price is $169.28.

Workday (NASDAQ:WDAY - Get Free Report) last released its earnings results on Thursday, May 21st. The software maker reported $2.66 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.51 by $0.15. Workday had a net margin of 8.60% and a return on equity of 13.92%. The company had revenue of $2.54 billion for the quarter, compared to the consensus estimate of $2.52 billion. During the same quarter in the previous year, the company earned $2.23 EPS. Workday's quarterly revenue was up 13.5% compared to the same quarter last year. Equities analysts forecast that Workday will post 5.11 earnings per share for the current year.

Insider Transactions at Workday

In other Workday news, major shareholder David A. Duffield sold 107,500 shares of the business's stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $129.76, for a total value of $13,949,200.00. Following the completion of the transaction, the insider owned 105,049 shares of the company's stock, valued at approximately $13,631,158.24. The trade was a 50.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gerrit S. Kazmaier sold 9,356 shares of the business's stock in a transaction dated Tuesday, April 7th. The shares were sold at an average price of $128.39, for a total value of $1,201,216.84. Following the sale, the insider owned 165,074 shares of the company's stock, valued at approximately $21,193,850.86. This represents a 5.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last three months, insiders sold 989,814 shares of company stock valued at $131,576,291. 18.64% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. First Eagle Investment Management LLC purchased a new stake in shares of Workday during the 3rd quarter worth approximately $556,252,000. Phoenix Financial Ltd. purchased a new stake in Workday during the 3rd quarter valued at $2,000,000. Robeco Institutional Asset Management B.V. raised its holdings in Workday by 18.3% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 571,766 shares of the software maker's stock valued at $122,804,000 after buying an additional 88,384 shares during the period. Sienna Gestion purchased a new stake in Workday during the 3rd quarter valued at $7,948,000. Finally, Summit Global Investments purchased a new stake in Workday during the 3rd quarter valued at $2,080,000. 89.81% of the stock is currently owned by institutional investors.

Key Headlines Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday posted Q1 adjusted EPS of $2.66 versus estimates of $2.49, while revenue rose 13.5% year over year to $2.54 billion, topping forecasts. Workday Announces Fiscal 2027 First Quarter Financial Results
• Positive Sentiment: Management raised its full-year non-GAAP operating margin guidance to 30.5%, signaling stronger profitability and helping fuel the stock’s rebound. Workday pops as Q1 results guidance top estimates
• Positive Sentiment: Analysts highlighted growing AI monetization, noting that Workday’s AI features and agentic roadmap are starting to show up in contract value and customer adoption. Workday's AI Momentum Continues as Solid Q1 Results Posted, RBC Says
• Positive Sentiment: Several Wall Street firms responded with constructive commentary and price-target updates after the beat, reinforcing sentiment that the quarter was solid and the setup remains favorable. These Analysts Revise Their Forecasts On Workday Following Q1 Results
• Neutral Sentiment: Some analysts remain cautious, calling the post-earnings move more of a relief rally and noting that the stock is still expensive relative to fundamentals. WDAY Stock’s Gains Following Q1 Beat Fails to Unite Wall Street – This Analyst Believes Post-Earnings Rise Feels More Like Relief Rally
• Negative Sentiment: Citi and other firms trimmed price targets, reflecting lingering concerns about valuation and execution even after the strong quarter. Workday Rallies On 'Low Bar' Beat As AI Starts To Show Up In Contract Value

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.

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