Interactive Brokers shares jump as it secures spot in S&P 500
Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating and $275.00 price target on Workday (NASDAQ:WDAY), currently trading at $227.58, following the company’s second-quarter results for fiscal year 2026. According to InvestingPro data, the company maintains a GOOD financial health score, with analysts projecting continued profitability this year.
Workday delivered strong quarterly performance with positive results across subscription revenue, backlog, and margins, maintaining an impressive 75.58% gross profit margin. The company has raised its fiscal year 2026 subscription revenue guidance to $8.815 billion, representing 14.2% year-over-year growth, a 20 basis point increase from previous guidance, building on its robust 13.94% revenue growth in the last twelve months.
The revised guidance primarily reflects Workday’s pending acquisition of Paradox for $1 billion in cash. Without the Paradox acquisition, the fiscal year guidance would have remained at $8.800 billion, despite the solid second-quarter results and easing foreign exchange headwinds. With a healthy current ratio of 2.1, Workday holds more cash than debt on its balance sheet, positioning it well for strategic acquisitions. For deeper insights into Workday’s financial position and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
Growth drivers for Workday remain intact, including momentum in its financial management solutions with notable customer wins, partner strength with 20% of net-new annual contract value being partner sourced, international expansion, and continued artificial intelligence attachment with over 70% of new customers.
The Paradox acquisition is expected to enhance Workday’s AI-powered recruiting suite by adding a mobile-first, candidate-centric platform for front-line industries, further reinforcing the company’s artificial intelligence offerings ahead of the Workday Rising event in September.
In other recent news, Workday’s second-quarter financial results have prompted several analysts to adjust their price targets and ratings. Oppenheimer reduced its price target to $270 while maintaining an Outperform rating, citing "group multiples compression" rather than fundamental business concerns. Needham reiterated a Buy rating with a $300 price target, noting that Workday slightly exceeded consensus estimates due to early renewals. Stifel lowered its price target to $255, maintaining a Hold rating, and pointed out a lack of acceleration in business momentum despite a modest revenue beat.
DA Davidson also adjusted its price target to $225, keeping a Neutral rating, following Workday’s healthy earnings beat but unchanged forward guidance. BMO Capital decreased its price target to $285, maintaining an Outperform rating, and commented on solid expense execution amid an uneven macroeconomic environment. These recent developments reflect varying analyst perspectives on Workday’s financial performance and future outlook.
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