Workday, Inc. (WDAY) develops cloud-based software for human capital management and financial operations, enabling enterprises to efficiently handle HR, payroll, recruiting, and finance tasks. Headquartered in Pleasanton, California, it serves as the central hub directing global product development, engineering, and strategic initiatives. The company has a market capitalization of $34.94 billion, making it a “large-cap” stock.
Workday’s shares reached a 52-week low of $117.76 on Feb. 25, but are up 15.5% from that level. The stock has been struggling on Wall Street due to subdued fiscal 2027 subscription revenue guidance. Investors are also concerned that artificial intelligence (AI) will disrupt traditional SaaS models.
Over the past three months, Workday’s stock has declined 37.8%. On the other hand, the Dow Jones Industrial Average ($DOWI) is down only by 5.3% over the same period.
Over the past 52 weeks, Workday’s stock has been down 45.7%, while it has dropped 41.8% over the past six months. The Dow Jones Industrial Average is up 8.6% over the past 52 weeks but has declined 1.6% over the past six months. The stock has been trading below its 200-day moving average since October 2025 and its 50-day moving average since November 2025.
On Feb. 24, Workday reported better-than-expected fourth-quarter results for fiscal 2026 (quarter ended Jan. 31). The company’s total revenues increased 14.5% year-over-year (YOY) to $2.53 billion, based on its subscription service revenue increasing by 15.7% YOY to $2.36 billion.
For fiscal 2027, Workday expects its subscription revenues to grow 12%-13% to $9.93 billion-$9.95 billion. However, this is slower than the 14.4% subscription revenue the company recorded in fiscal 2026. Wall Street analysts expect its profit to grow by 10.9% YOY to $5.11 per diluted share for the current fiscal year.
We compare Workday’s performance with that of another software application stock, Atlassian Corporation (TEAM), which has declined 67.4% over the past 52 weeks and 56.4% over the past six months. Therefore, WDAY has been an outperformer over these periods.
Wall Street analysts are moderately bullish on Workday’s stock. The stock has a consensus rating of “Moderate Buy” from the 42 analysts covering it. The mean price target of $188.70 implies a 38.8% upside from current levels. The Street-high price target of $328 indicates a 141.2% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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