The Goldman Sachs Group Has Lowered Expectations for Workday (NASDAQ:WDAY) Stock Price

Workday (NASDAQ:WDAY) had its price target reduced by equities researchers at The Goldman Sachs Group from $238.00 to $206.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a “neutral” rating on the software maker’s stock. The Goldman Sachs Group’s price objective suggests a potential upside of 59.16% from the company’s current price.

Several other brokerages also recently commented on WDAY. Royal Bank Of Canada dropped their target price on shares of Workday from $220.00 to $180.00 and set an “outperform” rating on the stock in a report on Wednesday. Wall Street Zen upgraded shares of Workday from a “buy” rating to a “strong-buy” rating in a report on Saturday, February 14th. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price objective on shares of Workday in a research note on Wednesday. Citizens Jmp cut Workday from an “outperform” rating to a “market perform” rating in a research report on Wednesday, February 18th. Finally, Stifel Nicolaus set a $175.00 target price on Workday in a research note on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and sixteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Workday presently has an average rating of “Moderate Buy” and an average price target of $212.66.

Workday Stock Down 0.6%

Shares of NASDAQ WDAY traded down $0.80 during mid-day trading on Wednesday, reaching $129.43. 12,968,375 shares of the company traded hands, compared to its average volume of 4,726,654. The company’s fifty day moving average is $184.46 and its two-hundred day moving average is $213.51. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.83 and a current ratio of 1.83. Workday has a fifty-two week low of $117.76 and a fifty-two week high of $281.00. The stock has a market cap of $34.04 billion, a PE ratio of 54.46, a price-to-earnings-growth ratio of 1.11 and a beta of 1.13.

Workday (NASDAQ:WDAY) last announced its earnings results on Tuesday, February 24th. The software maker reported $2.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.32 by $0.15. Workday had a return on equity of 10.50% and a net margin of 6.95%.The firm had revenue of $2.53 billion during the quarter, compared to analysts’ expectations of $2.52 billion. During the same quarter in the prior year, the business earned $1.92 earnings per share. The company’s revenue was up 14.5% on a year-over-year basis. On average, analysts expect that Workday will post 2.63 earnings per share for the current year.

Insider Activity at Workday

In other news, CAO Mark S. Garfield sold 953 shares of the business’s stock in a transaction that occurred on Thursday, January 8th. The stock was sold at an average price of $209.56, for a total transaction of $199,710.68. Following the sale, the chief accounting officer directly owned 35,336 shares in the company, valued at approximately $7,405,012.16. The trade was a 2.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Richard Harry Sauer sold 1,130 shares of the company’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $210.00, for a total value of $237,300.00. Following the completion of the transaction, the insider owned 85,398 shares of the company’s stock, valued at $17,933,580. The trade was a 1.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 370,321 shares of company stock worth $78,866,401 in the last three months. Company insiders own 20.00% of the company’s stock.

Institutional Investors Weigh In On Workday

Several large investors have recently made changes to their positions in the company. Rakuten Securities Inc. bought a new position in Workday during the 2nd quarter valued at about $25,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Workday during the third quarter worth approximately $26,000. DT Investment Partners LLC bought a new position in shares of Workday in the fourth quarter valued at approximately $27,000. LRI Investments LLC bought a new position in shares of Workday in the fourth quarter valued at approximately $29,000. Finally, JPL Wealth Management LLC acquired a new position in shares of Workday in the 3rd quarter worth approximately $30,000. Institutional investors own 89.81% of the company’s stock.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Q4 beat — Workday reported stronger-than-expected fiscal Q4 results with EPS and revenue above consensus, driven by solid subscription growth and rising backlog, supporting the longer-term growth story. Workday Q4 Earnings Beat
• Positive Sentiment: Bull thesis & catalyst — Management is leaning into agentic AI as a growth catalyst and some firms (e.g., Needham) reaffirm Buy with high price targets, signaling conviction in longer-term upside despite near-term headwinds. Needham Buy Rating
• Neutral Sentiment: Macro / sector noise — The stock is trading amid broader software/AI-driven volatility; sector sentiment and macro uncertainty are amplifying reactions to guidance rather than fundamentals alone. Market Context
• Negative Sentiment: Guidance miss — Workday guided FY27 subscription revenue below Street estimates (slower new client wins amid corporate spending caution), which triggered an after-hours selloff and renewed investor concern about near-term growth. Reuters: Guidance Below Estimates
• Negative Sentiment: Margin pressure from AI investment — Analysts flagged that accelerated AI spending will compress near-term margins (and operating income guidance disappointed), which weighed on sentiment despite the quarter’s beat. MarketWatch: Cost of Competing in AI
• Negative Sentiment: Analyst cuts and downgrades — Multiple banks trimmed price targets or downgraded WDAY (Piper Sandler, BMO, BTIG, TD Cowen, Evercore, Mizuho, Rosenblatt, Wells Fargo, JPMorgan moves noted), increasing near-term selling pressure and raising uncertainty around consensus estimates. Benzinga: Analyst Activity

Workday Company Profile

Workday, Inc (NASDAQ: WDAY) is a provider of cloud-based enterprise applications focused on human capital management (HCM) and financial management. Founded in 2005 by Dave Duffield and Aneel Bhusri following their tenure at PeopleSoft, the company develops software-as-a-service solutions that help organizations manage workforce and financial processes in a unified, cloud-native environment. Workday’s platform emphasizes continuous updates, data security, and a configurable architecture aimed at large and mid-sized enterprises.

The company’s product portfolio centers on Workday Human Capital Management and Workday Financial Management, with additional offerings for payroll, talent management, workforce planning and analytics.