Workday (NASDAQ:WDAY) Price Target Cut to $180.00 by Analysts at Needham & Company LLC

Key Points

• Needham & Company cut its price target on Workday from $300 to $180, while keeping a buy rating. The new target still implies about 47.7% upside from the current share price.
• Workday reported a Q1 earnings and revenue beat, posting EPS of $2.66 versus the $2.49 estimate and revenue of $2.54 billion versus $2.52 billion expected. Revenue rose 13.5% year over year.
• Despite the recent pullback, analyst sentiment remains mixed but generally constructive, with the stock holding a Moderate Buy consensus and an average target price of $193.69. The shares were trading around $121.85, down 3.8% on the day.

Workday (NASDAQ:WDAY - Get Free Report) had its target price reduced by research analysts at Needham & Company LLC from $300.00 to $180.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the software maker's stock. Needham & Company LLC's price objective would suggest a potential upside of 47.72% from the company's current price.

Several other equities research analysts have also recently commented on the company. Jefferies Financial Group reaffirmed a "hold" rating and set a $140.00 target price on shares of Workday in a research note on Friday. Rosenblatt Securities decreased their target price on Workday from $180.00 to $150.00 and set a "buy" rating for the company in a research note on Wednesday, February 25th. TD Cowen cut Workday from a "buy" rating to a "hold" rating and set a $155.00 target price for the company. in a research note on Wednesday, February 25th. Guggenheim decreased their target price on Workday from $285.00 to $275.00 and set a "buy" rating for the company in a research note on Wednesday, February 25th. Finally, Wells Fargo & Company set a $185.00 target price on Workday and gave the stock an "overweight" rating in a research note on Friday. Twenty analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $193.69.

Workday Trading Down 3.8%

Shares of WDAY stock opened at $121.85 on Friday. The stock has a market cap of $31.32 billion, a price-to-earnings ratio of 47.23, a PEG ratio of 1.23 and a beta of 1.04. The stock has a 50-day moving average of $126.10 and a 200-day moving average of $169.57. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. Workday has a 1-year low of $110.36 and a 1-year high of $273.80.

Workday (NASDAQ:WDAY - Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The software maker reported $2.66 earnings per share for the quarter, beating the consensus estimate of $2.49 by $0.17. Workday had a return on equity of 13.37% and a net margin of 7.26%.The company had revenue of $2.54 billion during the quarter, compared to analysts' expectations of $2.52 billion. During the same quarter in the prior year, the firm posted $2.23 earnings per share. The business's quarterly revenue was up 13.5% on a year-over-year basis. On average, equities research analysts forecast that Workday will post 5.11 earnings per share for the current year.

Insider Activity at Workday

In other Workday news, major shareholder David A. Duffield sold 107,500 shares of the stock in a transaction that occurred on 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 transaction, the insider owned 105,049 shares in the company, valued at approximately $13,631,158.24. This represents a 50.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $128.39, for a total value of $1,201,216.84. Following the completion of the transaction, the insider owned 165,074 shares in the company, valued at approximately $21,193,850.86. The trade was a 5.36% decrease in their position. 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. In the last quarter, insiders sold 989,814 shares of company stock worth $131,576,291. Corporate insiders own 18.64% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Western Wealth Management LLC bought a new position in shares of Workday in the first quarter valued at approximately $39,000. Oddo BHF Asset Management Sas lifted its holdings in shares of Workday by 5.7% in the first quarter. Oddo BHF Asset Management Sas now owns 7,019 shares of the software maker's stock valued at $912,000 after purchasing an additional 378 shares in the last quarter. Ashton Thomas Securities LLC lifted its holdings in shares of Workday by 6.2% in the first quarter. Ashton Thomas Securities LLC now owns 2,206 shares of the software maker's stock valued at $287,000 after purchasing an additional 128 shares in the last quarter. Arkadios Wealth Advisors lifted its holdings in shares of Workday by 18.0% in the first quarter. Arkadios Wealth Advisors now owns 5,335 shares of the software maker's stock valued at $693,000 after purchasing an additional 812 shares in the last quarter. Finally, South Dakota Investment Council bought a new position in shares of Workday in the first quarter valued at approximately $948,000. Institutional investors own 89.81% of the company's stock.

Key Stories Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday delivered a clear Q1 beat on earnings and revenue, which is helping drive the stock higher. Workday shares jump as AI demand eases investor concerns
• Positive Sentiment: The company highlighted strong AI momentum, including new agentic AI offerings such as Sana for ITSM and a travel agent, suggesting a path to better monetization and customer adoption. Workday Announces Sana for IT Service Management and New Travel Agent
• Positive Sentiment: Management also raised its margin outlook, and analysts such as William Blair reiterated bullish views, reinforcing confidence that the business can expand profits while growing. Workday: Buy Rating Reaffirmed on Strong Q1 Beat, Rapid AI Monetization, Margin Upgrade and Attractive Valuation
• Neutral Sentiment: Aneel Bhusri returned as CEO during the quarter, a leadership change that may help execution, but investors will still want to see sustained progress in coming quarters.
• Negative Sentiment: Some pre-earnings commentary had flagged execution risk, slower growth trends, and concerns about AI rivals, so the rally may depend on Workday proving this quarter is the start of a stronger trend rather than a one-time beat. Workday execution risk flagged by Jefferies ahead of quarterly earnings

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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