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Investing.com - Oppenheimer has reiterated an Outperform rating on {{32361|{{32361|{{32361|{{32361|{{32361|Workday}}}}}}}} (NASDAQ:WDAY)}}, a $59.2 billion market cap software company, with a price target of $300.00 ahead of its fiscal second-quarter earnings report due in 6 days. According to InvestingPro data, the stock is currently trading below its Fair Value, with analysts’ targets ranging from $235 to $340.
The research firm noted that expectations for {{32361|{{32361|{{32361|{{32361|{{32361|Workday}}}}}}}}}} remain low, while its field checks have been "decent." InvestingPro analysis shows the company trading at high valuation multiples, with strong financial health metrics and impressive revenue growth of ~15% year-over-year.
Oppenheimer believes Workday maintains a durable margin growth and cash generation outlook, though it cautions that the upcoming F2Q update is unlikely to be significantly influenced by major new catalysts.
The firm expressed increasing confidence that Workday’s full-year outlook remains intact, but suggested management might withhold some of the potential F2Q upside to reflect current macro challenges, idiosyncratic risks, and general conservatism.
Oppenheimer concluded that Workday’s estimates may not change meaningfully following the earnings update, limiting the potential for the report to materially improve investor sentiment on the stock heading into the second half of fiscal year 2026.
In other recent news, Workday has been active with several significant developments. The company announced the acquisition of Flowise, a low-code platform designed to enhance AI agent-building capabilities, aiming to provide more tools for human resources and finance functions. Additionally, Evercore ISI has maintained its Outperform rating on Workday, expecting a slight overperformance against the subscription revenue guidance of $2.16 billion, which represents a 13.5% growth. In contrast, UBS has lowered its price target for Workday to $250 from $285, maintaining a Neutral rating due to concerns over softening demand in the human capital management sector.
Meanwhile, Cantor Fitzgerald has initiated coverage on Workday with an Overweight rating and a price target of $265, expressing confidence despite market concerns about slowing growth and potential AI disruptions. Guggenheim reiterated its Neutral rating, noting the challenging business environment Workday operates in, particularly with large transformational projects becoming less prioritized. These recent developments highlight the varied perspectives from analysts regarding Workday’s future performance and strategic direction.
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