Workday (WDAY) Earns Buy Rating as BTIG Calls Outlook "De-Risked"

Workday, Inc. (NASDAQ:WDAY) is included among the 12 Best Long Term US Stocks to Buy Now.

On December 17, BTIG started coverage of Workday, Inc. (NASDAQ:WDAY) with a Buy rating and a $285 price target. According to the analyst, the stock has gone nowhere for about two years, despite annual subscription revenue growing 16% and free cash flow rising about 18%. BTIG views next year’s numbers as “de-risked.”

Workday, Inc. (NASDAQ:WDAY) shares are down nearly 14% so far in 2025. Software stocks have struggled this year as investors worry that generative AI tools, especially those that can write code quickly, could disrupt established players. Workday has been leaning into that shift. It rolled out several AI agents this year and added new capabilities through small acquisitions.

In early November, the company closed its $1.1 billion purchase of Sana, an AI-driven learning software firm. Even so, the stock stayed under pressure, which further picked up after the third-quarter earnings. For the fiscal year ending January 2026, Workday, Inc. (NASDAQ:WDAY) forecast $8.83 billion in subscription revenue. That points to about 14.4% growth. The catch is that the outlook only increased by $13 million from the guidance issued in August.

Finance chief Zane Rowe told analysts on the earnings call that the updated figure includes contributions from Sana and a contract with the US Defense Intelligence Agency.

Workday, Inc. (NASDAQ:WDAY) is best known for its cloud-based software used in finance, human resources, and student information systems.

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.