Workday stock price target lowered to $225 from $250 at DA Davidson

Investing.com - DA Davidson has lowered its price target on Workday (NASDAQ:WDAY) to $225 from $250 while maintaining a Neutral rating on the stock. The software giant, currently trading at $227.58, boasts a market capitalization of approximately $61 billion and maintains strong financial health according to InvestingPro metrics.

The adjustment follows Workday’s second-quarter earnings report, which showed a healthy beat on expectations but was accompanied by effectively unchanged forward guidance.

The research firm noted that the unchanged outlook sent Workday shares lower in after-hours trading following the earnings announcement.

DA Davidson analyst Gil Luria, who has assumed coverage of the company, expressed a positive view of Workday’s overall position in the market.

The firm believes Workday has "a large opportunity in front of it" but indicated it would wait for "more clear signs of upside to revenue moving forward" before becoming more bullish on the stock.

In other recent news, Workday reported its fiscal second-quarter 2026 earnings, surpassing analyst expectations with non-GAAP earnings per share of $2.21, compared to the forecasted $2.11. The company also reported revenue of $2.35 billion, slightly above the consensus estimate of $2.34 billion, with a year-over-year growth rate of 13%. Despite these positive earnings results, Workday’s stock faced a decline in after-hours trading, influenced by implied lower guidance for the second half of fiscal 2026. Analysts have responded to these developments with varied outlooks. BMO Capital lowered its price target for Workday to $285, citing a cautious outlook, while maintaining an Outperform rating. Goldman Sachs also adjusted its price target to $280, maintaining a Buy rating, following the company’s subscription revenue growth of 14% and operating margins of 29%. BofA Securities reduced its price target to $265, noting macroeconomic concerns but still holding a Buy rating. Meanwhile, JMP Securities reiterated a Market Outperform rating with a price target of $315, despite the stock’s decline.

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