Cantor Fitzgerald reiterated an Overweight rating and $160 price target on Workday (NASDAQ:WDAY) after quarterly results. The stock trades at $121.85, down 55% over the past year.
The firm noted good but not fantastic results. Management kept fiscal 2027 subscription growth guidance at 12-13% but raised the operating margin outlook by 50 basis points.
AI adoption is accelerating: new annual contract value from Agentic AI grew over 200% year-over-year. Agentic AI annual recurring revenue is approaching $500 million.
Over 25% of expansion contract value came from AI, and AI-inclusive deals were 50% larger on average.
