Are Wall Street Analysts Predicting Workday Stock Will Climb or Sink?

Valued at a market cap of $36.2 billion, Workday, Inc. (WDAY) is a Pleasanton, California-based company that provides enterprise cloud applications. It offers a suite of financial management applications, human capital management applications, and spend management solutions that help organizations to streamline supplier selection and contract management. 

This tech company has notably lagged the broader market over the past 52 weeks. Shares of WDAY have declined 47.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained around 13%. Moreover, on a YTD basis, the stock is down 35.8%, while SPX has risen marginally. 

Narrowing the focus, WDAY has also underperformed the iShares Expanded Tech-Software Sector ETF (IGV), which declined 22.3% over the past 52 weeks and 23.6% on a YTD basis. 

On Feb. 9, WDAY announced that its co-founder and current Executive Chair, Aneel Bhusri, will return as Chief Executive Officer as the company moves into its next phase, with a strong focus on leadership in the fast-evolving AI landscape. Meanwhile, Carl Eschenbach will step down from his roles as CEO and board member after guiding Workday through a period marked by global expansion, broader industry reach, and improved operational discipline. He will remain involved as a strategic advisor to the CEO, supporting Bhusri and the company during the transition. Despite the leadership update, the company’s shares declined 5.1%, pressured by broader headwinds in the technology sector. 

For the current fiscal year, ending in January, analysts expect WDAY’s EPS to grow 142.6% year over year to $4.10. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion.   

Among the 42 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 26 “Strong Buy,” three "Moderate Buy,” and 13 "Hold” ratings. 

The configuration is less bullish than two months ago, with 27 analysts suggesting a “Strong Buy” rating.  

On Feb. 20, The Toronto-Dominion Bank (TD) maintained a “Buy" rating on WDAY but lowered its price target to $200, indicating a 45.1% potential upside from the current levels. 

The mean price target of $250.81 suggests an 82% potential upside from the current levels, while its Street-high price target of $328 suggests an ambitious 138% potential upside from the current levels.