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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $265.00 price target on Workday (NASDAQ:WDAY), a $60.8 billion market cap company currently trading at $227.58, following the company’s quarterly earnings report. According to InvestingPro data, the company maintains strong financial health with a GOOD overall score.
Workday delivered results that slightly exceeded analyst consensus for revenue, operating margin, and earnings per share, though calculated billings came in below expectations. The company demonstrates robust operational efficiency with a ~76% gross margin and ~14% revenue growth over the last twelve months. Get access to 12 more key insights about Workday with InvestingPro.
The firm highlighted that Workday’s current remaining performance obligations (cRPO) grew 16.4%, surpassing the company’s guidance of 15-16%, with early customer renewals driven by artificial intelligence and other next-generation features.
Despite these positive indicators, Workday only raised its full-year revenue guidance to account for its Paradox acquisition rather than incorporating the second-quarter performance beat, suggesting management conservatism about second-half performance.
Cantor Fitzgerald maintains its positive outlook on Workday, stating that "long-term concerns are overblown, leaving an attractive risk-reward scenario that skews to the upside."
In other recent news, Workday has reported its second-quarter financial results for fiscal year 2026, showing strong performance in subscription revenue, backlog, and margins. The company has raised its fiscal year 2026 subscription revenue guidance to $8.815 billion, indicating a 14.2% year-over-year growth. Despite this, several analysts have adjusted their price targets for Workday. Bernstein lowered its price target to $304, citing unimpressive guidance, while maintaining an Outperform rating. Oppenheimer reduced its price target to $270, attributing the change to "group multiples compression" rather than any fundamental business issues. Stifel also lowered its target to $255, mentioning a lack of acceleration in business momentum, and maintained a Hold rating. Meanwhile, Mizuho (NYSE:MFG) reiterated an Outperform rating with a $275 target, and Needham kept a Buy rating with a $300 target, noting the company’s modest quarter with a slight beat on consensus estimates. These developments reflect a mixed sentiment among analysts regarding Workday’s future performance.
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