Workday (WDAY) PT Raised to $160 at Stifel Amid Increased AI Adoption

Stifel analyst Brad Reback raised the price target on Workday (NASDAQ: WDAY) to $160.00 (from $115.00) while maintaining a Hold rating.

The analyst commented, "WDAY posted largely in-line results amid increased AI adoption among their customer base, with >5,500 customers using one or more organic agent (>35% Q/Q) and AI products now making up >25% of new ACV closed in the quarter. That said, while FY27 revenue guidance was slightly narrowed to the upside, management optimistically provided their initial FY28 revenue target at ~11%, which we believe implies a marginally softer outlook vs. their initial targets given at the September 2025 Analyst Day. Additionally, Q3 cRPO guidance of 11%-12% came in below the Street’s 14% expectation, with management attributing part of the gap to lapping the Paradox acquisition, which contributed more than one point to prior-year growth. Overall, while the quarter pointed to near-term stability, we remain concerned regarding how the company will monetize in an increasingly headless application world and potential HCM AI-native vendor competition. TP to $160."

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