Key Stats for Workday Stock
- Price Change for $WDAY stock: -3%
- Current Share Price: $221
- 52-Week High: $294
- $WDAY Stock Price Target: $283
What Happened?
Workday (WDAY) stock declined almost 3% despite reporting second-quarter earnings that topped analyst expectations.
The enterprise software company posted adjusted earnings of $2.21 per share versus the $2.12 consensus estimate, while revenue of $2.35 billion slightly exceeded the $2.34 billion forecast.
However, investors focused on Workday’s cautious forward guidance and warnings about specific market segments.
CEO Carl Eschenbach highlighted challenges in the state and local government (SLED) sector, citing funding uncertainties as organizations grapple with budget constraints.
Workday also noted pressure in higher education, particularly affecting universities with healthcare systems that are experiencing funding pullbacks.
Despite these headwinds, Workday announced the acquisition of Paradox, an AI-powered recruiting platform, signaling continued investment in artificial intelligence capabilities that now drive over 100% year-over-year growth in AI product sales.
See analysts’ growth forecasts and price targets for Workday stock (It’s free!) >>>
What the Market Is Telling Us About Workday Stock
The market’s muted reaction to WDAY stock suggests investors are weighing Workday’s solid execution against sector-specific challenges that could impact future growth.
While Workday maintained its full-year guidance and demonstrated strong momentum in AI adoption, with over 70% of new customers purchasing AI solutions, concerns about the SLED and higher education segments appear to be dampening enthusiasm.
The tech stock’s 12% year-to-date decline, compared to the Nasdaq’s 9% gain, reflects ongoing investor caution around enterprise software valuations.
However, with 65% of Fortune 500 companies as customers and accelerating AI revenue, Workday’s fundamental position remains strong despite near-term headwinds in specific verticals.
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
