
Workday (WDAY) Stock Forecast & Price Target
Workday (WDAY) Analyst Ratings
Bulls say
Workday's subscription revenue demonstrated robust growth with a year-over-year increase of 15.7% in F4Q, reaching $2.36 billion, supported by both inorganic factors and one-time revenue contributions. The company's focus on innovation and expansion within its sales organization is expected to drive significant growth, particularly in new customer acquisitions and international markets, forecasting a bull-case revenue of over $12.5 billion by FY28. Additionally, the strong performance in the 12-month subscription backlog, which grew by 15.8% year-over-year, reflects a solid demand trajectory that is slightly ahead of market expectations, contributing to a positive outlook for the company's financial performance.
Bears say
Workday has provided guidance indicating a sequential decline in subscription revenue for the first fiscal quarter, with projections of $2.355 billion reflecting a -1.1% quarter-over-quarter reduction, contrary to previous expectations of flat growth. Additionally, the company's full-year free cash flow growth forecast of 15% falls short of the consensus estimate of 16.8%, demonstrating a broader trend of underperformance relative to market expectations. Moreover, the downward revision of FY27 subscription growth guidance to 12-13%, alongside a reduction in projected revenue, suggests increased competitive pressure in the marketplace, contributing to a negative sentiment regarding Workday's financial outlook.
This aggregate rating is based on analysts' research of Workday and is not a guaranteed prediction by Public.com or investment advice.
Workday (WDAY) Analyst Forecast & Price Prediction
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