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Investing.com - TD Cowen has reiterated its Buy rating on Workday (NASDAQ:WDAY) with a price target of $310.00 following the company’s latest earnings report. The software company, currently valued at $60.8 billion, is showing strong financial health according to InvestingPro analysis.
The research firm described Workday’s quarterly results as a "Clean Print" and noted that the company delivered a return to historical contracted remaining performance obligation (cRPO) upside levels after experiencing softer results in the first quarter. With a robust gross profit margin of 75.6% and revenue growth of ~14% over the last twelve months, Workday continues to demonstrate strong operational efficiency.
TD Cowen highlighted that Workday maintained its organic revenue guidance for fiscal year 2026, which still anticipates growth reacceleration in the second half of the year. The firm also mentioned that macroeconomic conditions remain stable outside of the state, local and education (SLED) sector.
The research note pointed to strong artificial intelligence traction at Workday and indicated that more annual recurring revenue (ARR) details are expected at the company’s analyst day next month. TD Cowen also mentioned Workday’s announcement of the Paradox acquisition.
Despite the positive assessment, TD Cowen observed that Workday shares fell 4% in after-hours trading, suggesting that "selling pressure on ’good’ SaaS prints seems to be still lingering," though the firm believes "there should be a strong valuation floor." With analyst targets ranging from $220 to $340, and 10+ additional insights available on InvestingPro, investors can access comprehensive analysis to make informed decisions about this prominent software player.
In other recent news, Workday’s second-quarter earnings report has drawn varied reactions from financial analysts. RBC Capital maintained its Outperform rating and a $340 price target, noting a modest beat in the company’s earnings. However, Piper Sandler lowered its price target to $220, citing a mixed outlook despite the results being "better-than-feared." KeyBanc also reduced its price target to $285, expressing concerns about the company’s near-term to mid-term growth trajectory, even though Workday exceeded expectations in several key financial metrics. Cantor Fitzgerald reiterated its Overweight rating with a $265 price target, highlighting that Workday slightly surpassed analyst consensus for revenue, operating margin, and earnings per share. Bernstein decreased its price target to $304, pointing to unimpressive guidance despite the company delivering in-line results with a slight beat on subscription revenue. These developments reflect a range of perspectives on Workday’s financial health and future prospects.
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