Capital One downgraded Workday to ‘Equalweight’ from ‘Overweight’ while keeping a $219 price target.
- Citi raised its price target to $201 but maintained a ‘Neutral’ rating and warned about the potential for another “guide down.”
- Morgan Stanley said the fiscal 2028 outlook “set a growth floor and likely mark a clearing event.”
- Barclays stated that while the “quarter itself was fine,” mixed guidance is likely to “raise questions.”
Workday (WDAY) shares dipped in pre-market trade Friday even after the enterprise software company reported second-quarter results that topped Wall Street expectations, amid mixed guidance and divided analyst views.
In a note to investors cited by TheFly, Capital One downgraded Workday to ‘Equalweight’ from ‘Overweight’ while maintaining its $219 price target. Meanwhile, Citi, Barclays, Morgan Stanley and Wells Fargo all raised their targets, although their commentary ranged from cautious to bullish.
WDAY stock fell 2.2% in pre-market trade. On Stocktwits, retail sentiment around the shares improved to ‘neutral’ from ‘bearish’ territory over the past day, and chatter increased to ‘high’ from ‘normal’ levels.
Workday Analyst Price Targets Show A Wide Range
Citi lifted its price target to $201 from $139 but kept a ‘Neutral’ rating, saying the quarter delivered a “more modest subscription revenue beat” and warning about the potential for another “guide down.”
Barclays also raised its target to $224 from $200 and maintained an ‘Overweight’ rating. The firm expects a “muted” reaction to the results, saying the “quarter itself was fine and suggests solid execution in a stable macro, but mixed guidance will raise questions.”
Morgan Stanley took the most cautious stance in the group. Analyst Adam Wood raised the price target to $180 from $145 but retained an ‘Underweight’ rating. He said Workday’s in-line quarter and early fiscal 2028 guidance “set a growth floor and likely mark a clearing event,” but said the firm continues to favor other companies with more direct AI exposure.
Meanwhile, Wells Fargo was among the more bullish analysts. It raised its target to $225 from $215 and maintained an ‘Overweight’ rating. Analyst Michael Turrin said management’s surprise fiscal 2028 guidance helped anchor the firm’s model, even though the third-quarter cRPO guidance came in below expectations. Wells Fargo continues to view Workday as a high-quality asset with increasing terminal value.
| Analyst | Previous Price Target | New Price Target | Rating |
| Morgan Stanley | $145 | $180 | ‘Underweight’ |
| Citi | $139 | $201 | ‘Neutral’ |
| Capital One | $219 | $219 | ‘Equalweight’ |
| Barclays | $200 | $224 | ‘Overweight’ |
| Wells Fargo | $215 | $225 | ‘Overweight’ |
Silver Lake Speculation Continues
Workday reported earnings per share (EPS) of $2.75, beating analysts' expectations of $2.61, as per Koyfin. Revenue came in at $2.64 billion, in line with the consensus estimate.
For the third quarter (Q3), Workday estimated subscription revenue of $2.5 billion, and between $9.94 billion and $9.95 billion for the full fiscal year.
Beyond earnings and AI, some retail investors on Stocktwits also focused on recent reports involving private equity firm Silver Lake. Workday co-founder and executive chairman Aneel Bhusri declined to comment on the matter during the earnings call, saying the company would act in its customers' best interests.
His response prompted speculation among some Stocktwits users that discussions may have taken place. However, Workday did not confirm any offer, transaction, or negotiations with Silver Lake.
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WDAY stock has fallen 10% year-to-date and over 13% in the last 12 months.
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