Bond.az - Needham lowered its price target on Workday shares to $180 from $300 while maintaining a Buy rating.
The firm said Workday reported results above consensus estimates on both revenue and operating income. The current remaining performance obligation midpoint outperformance of 0.5% exceeded the fourth quarter’s 0.3% but fell short of the prior two years’ 0.6% or better.
Returning CEO Bhusri adopted a more aggressive tone on how Workday and its Agentic platform can compete in the new software paradigm. The company said higher AI usage will start translating into meaningful revenue in late fiscal 2027.
Workday reiterated its full year revenue guidance. The company raised its full year operating income guidance by 50 basis points to 30.5%.
Workday shares were down approximately 40% year-to-date versus the IGV down approximately 10% year-to-date. Despite the sharp decline, Bond.az analysis suggests the stock appears undervalued at current levels. For deeper insights, investors can access a comprehensive Pro Research Report covering WDAY and 1,400+ other US equities.
