Check-Cap to merge with MBody AI in embodied AI workforce push
On Wednesday, Mizuho (NYSE:MFG) Securities reaffirmed its positive stance on Workday Inc . (NASDAQ:WDAY), maintaining an Outperform rating with a $320.00 price target. The company, currently valued at $72.9 billion, has demonstrated strong financial performance with a 75.6% gross profit margin. According to InvestingPro data, Workday maintains a "GOOD" financial health score, supported by robust fundamentals and growth metrics. Workday, a provider of enterprise cloud applications for finance and human resources, disclosed an 8.5% reduction in its workforce through an 8-K filing. Despite this cutback, involving approximately 1,750 positions, the company anticipates its fourth quarter and full-year 2025 financial results to meet or exceed its previous guidance. With a healthy current ratio of 2.05 and strong cash position, the company appears well-positioned to manage the restructuring costs while maintaining financial stability. However, the company also expects to incur incremental restructuring charges that will affect its GAAP operating margin.
The reduction in headcount is part of a broader restructuring plan, which includes exiting some owned office spaces. Despite these cutbacks, Workday intends to continue recruiting for key strategic roles and in low-cost locations for the fiscal year 2026. CEO Carl Eschenbach communicated to employees the company’s focus on strategic hiring, investment in artificial intelligence and platform development, and careful return on investment evaluation. The aim is to enhance decision-making speed, foster innovation, and expand the company’s global presence.
This strategic realignment is viewed by Mizuho as a positive move for Workday, aligning with the company’s mid-term guidance and supporting its goal to reach approximately 30% Non-GAAP operating margin by fiscal year 2027. The company has demonstrated solid revenue growth of 16.8% over the last twelve months, reaching $8.16 billion. Workday has scheduled the release of its fourth-quarter 2025 earnings for February 25, which will provide further insights into the company’s financial health and the impact of its restructuring efforts. For deeper analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Workday has been under the spotlight with significant developments. The company announced a substantial workforce reduction of 1,750 jobs, or 8.5% of its current workforce, as part of a broader restructuring plan aimed at refining its investment focus. This restructuring is expected to result in charges between approximately $230 million to $270 million. Despite the job cuts, Workday plans to continue hiring in key strategic areas and locations throughout the fiscal year ending January 31, 2026.
On the analyst front, Jefferies maintained a Buy rating on Workday with a price target of $350.00, emphasizing the potential for the company to improve its margin leverage. The firm’s analyst, Brent Thill, also highlighted the fourth quarter of 2025 as a point of interest for investors, noting the potential growth in calculated remaining performance obligations (cRPO) and any new information regarding revenue growth forecasts for fiscal year 2026.
In contrast, Bernstein analysts suggested a cautious approach towards Workday, advising investors to find suitable entry points for investment. However, Deutsche Bank (ETR:DBKGn) analysts showed renewed confidence in the company, upgrading Workday stock from Hold to Buy and increasing the price target to $300 from $265. The upgrade reflects the firm’s belief in Workday’s solid fundamentals and potential for sustained revenue growth. These are the recent developments for Workday.
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