Workday's stock has fallen over 40% in six months despite solid Q4 results showing 14.5% revenue growth and expanding operating margins. The company projects 11-12% revenue growth and margin expansion through 2027, driven by ongoing AI investments. At a forward P/E of 12.45, the stock presents a compelling risk/reward opportunity, with AI seen as a positive long-term catalyst. The market's fear of AI disruption appears to have overly punished Workday's shares relative to its fundamentals.
Workday received a Strong Buy rating with a target price of $145, reflecting a valuation of 13.5x FY2027 and 11.5x FY2028 earnings amid market pessimism. The company is benefiting from Agentic AI, which has boosted new contract value by over 200% yea...
Workday shares have dropped over 35% in the past year due to concerns that generative AI might replace its HR software platform. However, the company's Q1 2027 results showed a healthy 14.7% year-over-year growth in subscription revenue, indicating o...
