Pleasanton, California-based Workday, Inc. (WDAY) is a leading global provider of enterprise cloud applications designed to help organizations manage their human capital, financial operations, and business planning. It is valued at a market cap of $31.9 billion.
This software company has significantly underperformed the broader market over the past 52 weeks. Shares of WDAY have fallen 48% over this time frame, while the broader S&P 500 Index ($SPX) has soared 26.8%. Moreover, on a YTD basis, the stock is down 42%, compared to SPX’s 9.7% rise.
Narrowing the focus, WDAY has also notably lagged the State Street Technology Select Sector SPDR ETF’s (XLK) 58.9% rise over the past 52 weeks and 28.1% YTD uptick.
On May 21, WDAY delivered stronger-than-expected Q1 results, and its shares surged 5.2% in the following trading session. The company’s revenue increased 13.5% year-over-year to $2.5 billion, topping analyst estimates by a slight margin. Moreover, its adjusted EPS of $2.66 came in 6.8% ahead of consensus expectations. Management credited the solid performance to improving momentum in its core operations and strong demand for its AI-driven agent solutions, which are enabling customers to streamline and automate HR and finance functions.
For the current fiscal year, ending in January 2027, analysts expect WDAY’s EPS to grow 11.3% year over year to $5.13. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 41 analysts covering the stock, the consensus rating is a "Moderate Buy," which is based on 22 “Strong Buy,” three "Moderate Buy,” and 16 “Hold” ratings.
The configuration is slightly less bullish than a month ago, with 23 analysts suggesting a “Strong Buy” rating.
On May 26, Guggenheim analyst John Difucci maintained a “Buy” rating on WDAY and set a price target of $275, indicating a 120.9% potential upside from the current levels.
The mean price target of $182.11 suggests a 46.3% premium to its current price levels, while its Street-high price target of $328 implies a 163.5% potential upside.
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