Workday is maintaining a buy rating as its adoption of AI significantly drives expansion within its existing customer base. The company's agentic AI has led to over 200% year-over-year growth in new annual contract value, with expansion deals increasing by more than 50% and over 4,000 customers using at least one AI agent. Core subscription revenue grew 14.3% year-over-year, largely fueled by existing customers, and the company has strong backlog visibility. Valuation remains attractive at about 7 times free cash flow for fiscal year 2029, supported by rising margins and robust free cash flow, with potential for accelerated growth if AI monetization strengthens further.
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...
