Piper Sandler Issues Pessimistic Forecast for Workday (NASDAQ:WDAY) Stock Price

Workday (NASDAQ:WDAY) had its price target decreased by investment analysts at Piper Sandler from $200.00 to $135.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm currently has a “neutral” rating on the software maker’s stock. Piper Sandler’s price target points to a potential upside of 3.66% from the company’s previous close.

Several other brokerages have also issued reports on WDAY. DA Davidson reduced their target price on Workday from $260.00 to $250.00 and set a “hold” rating on the stock in a research report on Wednesday, November 26th. BMO Capital Markets dropped their price target on Workday from $204.00 to $182.00 and set an “outperform” rating on the stock in a research note on Wednesday. Mizuho cut shares of Workday from a “strong-buy” rating to a “hold” rating in a research note on Monday. BTIG Research dropped their target price on shares of Workday from $230.00 to $175.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Citizens Jmp cut shares of Workday from an “outperform” rating to a “market perform” rating in a report on Wednesday, February 18th. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and sixteen have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $233.16.

Workday Trading Up 0.8%

NASDAQ:WDAY opened at $130.23 on Wednesday. The stock has a market capitalization of $34.25 billion, a price-to-earnings ratio of 54.72, a PEG ratio of 1.11 and a beta of 1.13. Workday has a 52 week low of $125.83 and a 52 week high of $281.00. The company has a quick ratio of 1.83, a current ratio of 1.83 and a debt-to-equity ratio of 0.34. The firm has a 50 day moving average of $184.46 and a 200 day moving average of $213.51.

Workday (NASDAQ:WDAY) last issued its quarterly earnings results on Tuesday, February 24th. The software maker reported $2.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.32 by $0.15. Workday had a return on equity of 10.50% and a net margin of 6.95%.The business had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.52 billion. During the same period in the prior year, the firm posted $1.92 earnings per share. The business’s quarterly revenue was up 14.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Workday will post 2.63 earnings per share for the current fiscal year.

Insider Activity at Workday

In related news, CFO Zane Rowe sold 6,000 shares of the firm’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $208.75, for a total transaction of $1,252,500.00. Following the sale, the chief financial officer directly owned 159,158 shares of the company’s stock, valued at $33,224,232.50. This trade represents a 3.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Carl M. Eschenbach sold 3,125 shares of Workday stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $210.00, for a total value of $656,250.00. Following the transaction, the chief executive officer owned 17,097 shares of the company’s stock, valued at approximately $3,590,370. This represents a 15.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 370,321 shares of company stock valued at $78,866,401 over the last ninety days. Corporate insiders own 20.00% of the company’s stock.

Institutional Investors Weigh In On Workday

A number of hedge funds and other institutional investors have recently made changes to their positions in WDAY. Rakuten Securities Inc. acquired a new position in shares of Workday in the 2nd quarter valued at $25,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Workday during the 3rd quarter worth about $26,000. DT Investment Partners LLC acquired a new stake in shares of Workday during the 4th quarter valued at about $27,000. LRI Investments LLC acquired a new stake in shares of Workday during the 4th quarter valued at about $29,000. Finally, JPL Wealth Management LLC purchased a new position in shares of Workday in the 3rd quarter valued at about $30,000. Institutional investors and hedge funds own 89.81% of the company’s stock.

Key Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Q4 beats — Workday reported better‑than‑expected fiscal Q4 results: revenue and EPS topped consensus and subscription revenue grew year‑over‑year, underpinned by strong cash flow. Workday Q4 results press release
• Positive Sentiment: Analyst buy thesis remains for some — Needham reaffirmed a Buy and kept a $300 price target, arguing AI investments offer long‑term upside despite near‑term headwinds. Needham buy rating
• Neutral Sentiment: Leadership/AI strategy — Workday has emphasized agentic AI as a growth driver and recently brought back a founder CEO, a strategic pivot that could help execution but adds uncertainty about near‑term priorities. CEO return and AI focus
• Neutral Sentiment: Broader software sell‑off — The pullback in software names and macro uncertainty amplified the reaction to Workday’s guidance, meaning market moves reflect sector trends as well as company specifics. Software sector pressure
• Negative Sentiment: Guidance miss — Management forecast FY‑2027 subscription revenue below Street estimates (and guided for slower subscription growth), signaling weaker new‑client wins as corporate tech spend moderates. Revenue guidance below estimates
• Negative Sentiment: Margins and AI investment cost — Workday warned of margin pressure as it accelerates AI investments and guidance for adjusted operating income was cautious, pressuring investor sentiment about near‑term profitability. Margin outlook and AI costs
• Negative Sentiment: Analyst reactions — Several brokers pared targets or downgraded WDAY (Jefferies, Mizuho among them); JPMorgan lowered its target too, increasing near‑term selling pressure. Jefferies cut Mizuho downgrade (summary) JPM price‑target move (summary)

About Workday

Workday, Inc (NASDAQ: WDAY) is a provider of cloud-based enterprise applications focused on human capital management (HCM) and financial management. Founded in 2005 by Dave Duffield and Aneel Bhusri following their tenure at PeopleSoft, the company develops software-as-a-service solutions that help organizations manage workforce and financial processes in a unified, cloud-native environment. Workday’s platform emphasizes continuous updates, data security, and a configurable architecture aimed at large and mid-sized enterprises.

The company’s product portfolio centers on Workday Human Capital Management and Workday Financial Management, with additional offerings for payroll, talent management, workforce planning and analytics.