Workday, Inc. (WDAY) Down More Than 7.85% Since Q3 2026 Results, Here's What You Need to Know

Workday, Inc. (NASDAQ:WDAY) is one of the Best SaaS Stocks to Buy Right Now. The share price of Workday, Inc. (NASDAQ:WDAY) fell by more than 7.85% a day after its fiscal Q3 2026 earnings release on November 25. The stock also remains down by 10.73% on a year-to-date basis. On December 1, Robert Simmons, CFA from Rosenblatt Securities, initiated a Hold rating on the stock with a price target of $45.

Analyst Simmons maintained a cautiously optimistic outlook on the stock based on the company’s future prospects and the market position. He noted that Workday, Inc.’s (NASDAQ:WDAY) core business, Human Capital Management, is expected to grow at a slower rate due to increased competition and market saturation. On the other hand, while the other businesses of the company are expected to grow at a faster pace, Simmons argues that they haven’t shown any substantial impact on the overall growth of the company.

Simmons highlighted that he remains optimistic regarding Workday’s future prospects, driven by its strong margins. However, the stock currently trades at a premium to its peers. Therefore, Simmons initiated a Hold rating on the stock and is waiting for a better entry point.

During fiscal Q3 2026, Workday, Inc. (NASDAQ:WDAY) grew its revenue by 12.59% year-over-year to reach $2.43 billion, surpassing estimates by $14.54 million. The EPS of $2.32 also topped consensus by $0.15. Management attributed the performance to its diversity of businesses and momentum across its AI portfolio.

Workday, Inc. (NASDAQ:WDAY) offers an enterprise AI platform that manages people, money, and agents.

While we acknowledge the potential of WDAY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.