The Goldman Sachs Group Cuts Workday (NASDAQ:WDAY) Price Target to $206.00

Workday (NASDAQ:WDAY) had its price objective reduced by investment analysts at The Goldman Sachs Group from $238.00 to $206.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has a “neutral” rating on the software maker’s stock. The Goldman Sachs Group’s price objective indicates a potential upside of 59.16% from the company’s previous close.

Several other research firms have also recently weighed in on WDAY. Oppenheimer dropped their price objective on shares of Workday from $270.00 to $200.00 and set an “outperform” rating for the company in a research report on Tuesday, February 17th. Stifel Nicolaus set a $175.00 target price on Workday in a research note on Monday, February 9th. DA Davidson set a $125.00 target price on Workday in a research report on Wednesday. Royal Bank Of Canada decreased their price target on Workday from $220.00 to $180.00 and set an “outperform” rating on the stock in a report on Wednesday. Finally, Morgan Stanley lowered their price objective on Workday from $280.00 to $200.00 and set an “equal weight” rating for the company in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat.com, Workday has an average rating of “Moderate Buy” and an average target price of $212.66.

Workday Price Performance

Shares of Workday stock traded down $0.80 during trading on Wednesday, reaching $129.43. The company’s stock had a trading volume of 12,968,375 shares, compared to its average volume of 4,726,654. The stock has a 50-day moving average price of $184.46 and a two-hundred day moving average price of $213.51. The stock has a market capitalization of $34.04 billion, a P/E ratio of 54.46, a price-to-earnings-growth ratio of 1.11 and a beta of 1.13. The company has a current ratio of 1.83, a quick ratio of 1.83 and a debt-to-equity ratio of 0.34. Workday has a one year low of $117.76 and a one year high of $281.00.

Workday (NASDAQ:WDAY) last posted its quarterly earnings data on Tuesday, February 24th. The software maker reported $2.47 earnings per share for the quarter, beating the consensus estimate of $2.32 by $0.15. Workday had a net margin of 6.95% and a return on equity of 10.50%. The firm had revenue of $2.53 billion during the quarter, compared to analysts’ expectations of $2.52 billion. During the same quarter last year, the company posted $1.92 EPS. The company’s quarterly revenue was up 14.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Workday will post 2.63 EPS for the current fiscal year.

Insider Buying and Selling at Workday

In other news, CFO Zane Rowe sold 6,000 shares of Workday stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $208.75, for a total transaction of $1,252,500.00. Following the transaction, the chief financial officer directly owned 159,158 shares of the company’s stock, valued at $33,224,232.50. This trade represents a 3.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Gerrit S. Kazmaier sold 6,547 shares of the stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $218.77, for a total value of $1,432,287.19. Following the completion of the sale, the insider owned 111,353 shares of the company’s stock, valued at $24,360,695.81. This trade represents a 5.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 370,321 shares of company stock worth $78,866,401 over the last ninety days. 20.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Workday

Several institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC boosted its holdings in shares of Workday by 230.2% in the fourth quarter. Brighton Jones LLC now owns 4,005 shares of the software maker’s stock valued at $1,033,000 after buying an additional 2,792 shares during the period. Empowered Funds LLC lifted its position in Workday by 12.1% in the 1st quarter. Empowered Funds LLC now owns 11,142 shares of the software maker’s stock valued at $2,602,000 after acquiring an additional 1,206 shares in the last quarter. Geneos Wealth Management Inc. boosted its stake in Workday by 211.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 187 shares of the software maker’s stock worth $44,000 after purchasing an additional 127 shares during the period. Sivia Capital Partners LLC acquired a new position in Workday in the 2nd quarter worth $281,000. Finally, D.A. Davidson & CO. increased its holdings in Workday by 8.6% during the 2nd quarter. D.A. Davidson & CO. now owns 1,738 shares of the software maker’s stock worth $417,000 after purchasing an additional 137 shares in the last quarter. 89.81% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Workday

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

About Workday

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.