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On Saturday, BNP Paribas (OTC:BNPQY) Exane reiterated an Outperform rating on Workday stock, with a steady price target of $280.00. According to InvestingPro data, the stock has experienced a significant 12.8% decline over the past week, while analyst targets range from $250 to $340. Stefan J. Slowinski of BNP Paribas Exane provided insights into the company’s prospects, acknowledging the current challenges while expressing optimism for future growth. Slowinski noted the absence of a "beat and raise" in the recent earnings report and recognized investor concerns due to weak billings.
Despite these issues, the analyst remains hopeful for a revenue growth re-acceleration for Workday through the rest of the year. InvestingPro analysis shows strong fundamentals with a "GOOD" Financial Health score and 27 analysts revising earnings estimates upward. This anticipation is based on several factors including ramping product deliverables, the introduction of Workday Wellness, and a potential contribution from AI technologies. Slowinski’s outlook suggests that these developments could support the company’s target for ’mid-teens’ growth, aligning with the company’s historical 18% revenue CAGR over the past five years.
In the evaluation of Workday’s financial position, Slowinski pointed out that the company’s shares are currently trading at approximately a 4% FY26 free cash flow yield. This metric, supported by InvestingPro data showing $2.3 billion in levered free cash flow and a healthy current ratio of 2.07, along with the potential for Workday to drive further operating leverage, underpins the analyst’s positive stance on the stock’s risk/reward balance at current levels. For deeper insights into Workday’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Workday, listed on (NASDAQ:WDAY), is a provider of enterprise cloud applications for finance and human resources. The company has been focusing on expanding its product offerings and leveraging new technologies to bolster its market position, maintaining a strong 75.7% gross profit margin. The endorsement from BNP Paribas Exane reflects confidence in Workday’s strategic initiatives and its ability to navigate through the current challenges to achieve long-term growth.
In other recent news, Workday reported first-quarter fiscal 2026 earnings that surpassed analysts’ expectations, with an earnings per share of $2.23 compared to the forecasted $2.01. The company also exceeded revenue forecasts, reporting $2.24 billion against the expected $2.22 billion, marking a 13% year-over-year increase. Despite these positive results, there was a notable decline in Workday’s stock price in after-hours trading. RBC Capital Markets maintained its Outperform rating on Workday shares, keeping a price target of $340, while Piper Sandler increased its price target to $255 but maintained a Neutral rating. TD Cowen adjusted its outlook by lowering the price target to $310, yet continued to advocate a Buy rating. Analysts from JMP confirmed a Market Outperform rating with a steady price target of $315, despite concerns about slower billing growth. Analysts highlighted Workday’s progress in artificial intelligence, noting early adoption trends and the momentum in its partner network. Concerns remain about the external environment, particularly policy and tariff changes, which could impact Workday’s performance in certain sectors.
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