Key Stats for WDAY Stock
- Today’s Performance: 12%
- 52-Week Range: $110 to $257
- Valuation Model Target Price: around $208
- Implied Upside: 42%
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What Happened?
Workday Inc. stock rose about 12% today, finishing near $146 per share as investors warmed back up to the idea that the company can be more than a slower-growth enterprise software name. The market debate is whether Workday’s AI push can help revive growth while margins improve, especially as it competes with Oracle, SAP, ServiceNow, and Microsoft for enterprise HR, finance, workflow, and AI automation budgets.
The stock moved higher because Workday beat expectations, raised its profitability outlook, and showed healthier demand for its HR, finance, and AI software than investors feared. Workday’s platform helps large companies manage employees, payroll, financial planning, and business workflows, which makes subscription growth important because it supports recurring revenue. Total revenue rose 13.5% year over year to $2.542 billion, subscription revenue grew 14.3% to $2.354 billion, and non-GAAP EPS came in at $2.66. Workday also reported 12-month subscription revenue backlog of $8.806 billion, up 15.5%, while non-GAAP operating margin reached 31.8%, giving investors a stronger profit story even as growth remains in the low-teens range.
This week, Workday’s Q1 fiscal 2027 earnings call showed better momentum in both the core business and AI, with CEO Aneel Bhusri saying it was the company’s “best first quarter of new ACV growth in 5 years.” Agentic AI new ACV grew more than 200% year over year, Workday approached $500 million in ARR from agentic AI solutions, and more than 4,000 customers were using at least one organically developed agent. Management also raised fiscal 2027 non-GAAP operating margin guidance to 30.5% while reiterating subscription revenue guidance of about $9.93 billion to $9.95 billion, signaling that Workday is trying to pair AI-led growth with stronger profitability.
Analyst updates added more context to the rally, even though Wall Street’s reaction was mixed. Wells Fargo raised its price target to $185 from $180, Jefferies raised its target to $140 from $115, KeyBanc lifted its target to $158 from $155, and Piper Sandler raised its target to $145 from $135. Citi cut its target to $139 from $148, Needham lowered its target to $180 from $300, and Goldman Sachs set a $151 target while keeping a Neutral rating.
Overall, the stock rose because earnings, AI traction, and higher margins helped offset mixed analyst reactions, but the next test is whether Workday can turn early AI adoption into durable growth through 2026.
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Is Workday Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth CAGR: 11%
- Operating Margins: 32%
- Exit P/E Multiple: 13x
Workday’s growth has cooled from its earlier high-growth phase, but analysts still expect low-double-digit revenue growth as large companies keep spending on HR, finance, planning, and payroll systems.
The biggest business driver is whether Workday can expand deeper inside existing customers through financial management, AI agents, and industry-specific products that increase customer spending without relying on a major wave of new logo wins.
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AI matters because Workday is using its large base of HR and finance data to automate business processes, which could help defend its position against Oracle, SAP, ServiceNow, and Microsoft while opening new revenue streams.
Margin expansion is also central because stronger operating leverage can support earnings growth even if revenue growth stays near 11% instead of returning to the 20% range.
Based on the model’s target price of around $208, Workday appears undervalued, with future performance likely driven by subscription durability, AI monetization, enterprise renewals, and continued margin improvement through 2026 and beyond.
How Much Upside Does Workday Stock Have From Here?
Investors can estimate Workday’s potential share price, or what any stock could be worth, in under a minute using TIKR’s New Valuation Model tool.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
