Workday Stock Jumps 7.2% After Selloff. Analysts See $186 Fair Value

Rexielyn Diaz4 minute read
Reviewed by: Thomas Richmond
Last updated Mar 4, 2026

Key Stats for WDAY Stock

  • Price Change for WDAY stock: +7.2%
  • $WDAY Share Price as of March 03: $144
  • 52-Week High: $276
  • $WDAY Stock Price Target: $211

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What Happened?

Workday (WDAY) stock rose 7.2% on March 3, closing at $143.61. The move came after the stock had been under heavy pressure following its latest earnings report and outlook updates.

A week earlier, Workday shares fell sharply after the company forecast fiscal 2027 subscription revenue below Wall Street expectations. Workday cited delayed large enterprise deals across areas like government, higher education, and healthcare.

WDAY Revenues and Total Operating Expenses (TIKR)

Even with the weaker outlook, Workday still reported solid quarterly performance. The company said Q4 subscription revenue rose 15.7% to $2.36 billion, and it posted fiscal 2026 revenue of $9.55 billion, up 13.1%.

Investors have also been digesting leadership changes. In February, Workday announced a CEO transition with co-founder Aneel Bhusri returning as CEO.

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What the Market Is Telling Us About WDAY Stock

The bounce suggests investors saw the post-earnings drop as overdone, even though growth is slowing from prior years. Workday’s guidance miss drove concerns that large-deal cycles are taking longer.

There is also a clear AI narrative embedded in this move. Reuters tied part of the selloff to fears that new AI tools could disrupt traditional enterprise software demand, including HR workflows.

WDAY Guided Valuation (TIKR)

At the same time, Workday is still a scaled subscription business with improving profitability. The company’s LTM gross margin is 75.7%, and its LTM EBIT margin is 10.7% based on your TIKR overview. That margin profile helps explain why investors stepped in after the stock hit multi-year lows.

The stock is also still far below its 52-week high of $276. That gap shows how much expectations have reset since the growth slowdown and AI-driven sentiment shift.

WDAY Revenue and Profitability Trends

Workday’s fundamentals show steady top-line growth and rising operating leverage. Over the last twelve months, revenue was $9.55 billion, up 13.1% year over year.

Gross profit was $7.23 billion, and gross margin held near 75.7% based on the latest fiscal year data. That level of gross margin supports reinvestment in sales and R&D while still expanding operating income.

Operating income rose to $1.02 billion in the most recent fiscal year in your TIKR financials. That’s a meaningful step up from prior years when operating income was far lower or negative. The improvement matters because it shows Workday can scale profitability even as growth normalizes.

Cash generation remains a key driver. Workday produced $2.94 billion in operating cash flow in fiscal 2026, and free cash flow was $2.78 billion in the cash flow statement.

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Should You Invest in Workday, Inc.?

The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.

Pull up WDAY, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.

You can build a free watchlist to track WDAY alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.

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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!

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