Workday stock drops 30% YTD but shows strong AI growth and solid financials, making it a buy opportunity.

Workday's stock has declined 30% year-to-date despite steady revenue and strong demand. The company is seeing significant growth from AI-driven products, with annual recurring revenue from AI solutions nearing $500 million and agentic AI contract values tripling year-over-year. Workday maintains over 97% gross retention and has expanded its operating margin beyond targets. Valued at 3.1x EV/FY27 revenue and 10.3x EV/FY27 free cash flow, the stock offers a relatively low-risk entry point for long-term investors amid market volatility.