Workday (WDAY) Sees Strong Q2 Results but Analyst Cuts Target to $285

Workday, Inc. (NASDAQ:WDAY) is one of the Hot AI Stocks to Keep on Your Radar. On August 22, KeyBanc analyst Jason Celino lowered the price target on the stock to $285.00 (from $325.00) while maintaining an Overweight rating.

Workday surpassed expectations for current remaining performance obligations (cRPO), subscription revenue, and operating margin in its second-quarter fiscal results. However, “heightened uncertainty around near-term to mid-term growth trajectory” has led to a price target reduction.

The company raised its fiscal year 2026 subscription revenue guidance by $15 million. However, the firm noted this increase comes majorly from the Paradox acquisition, an AI-powered hiring solution, instead of organic growth.

“That said, F3Q cRPO growth guide of 15.5%, which excludes Paradox, came in a tad better, and the Company is raising OM to 29% and OCF guidance to $2.85B, above cons. 28.7% and $2.75B, respectively. While we lower our PT to $285 (based on 22x FY27 FCF) to reflect the heightened uncertainty around NT-MT growth trajectory, we are encouraged by Workday’s continued focus on profitability. Remain OW.”

Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.

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