Workday (WDAY) PT Raised to $345 at Goldman Sachs
Goldman Sachs analyst Kash Rangan raised the price target on Workday (NASDAQ: WDAY) to $345.00 (from $310.00) while maintaining a Buy rating.
The analyst comments "We reiterate our Buy rating and raise our PT to $345 ($310 prior) after Workday reported solid F4Q25 results (in-line with the pre-announcement), with Subscription Revenue +15.9% yoy (+0.7% vs. Consensus), OpM of 26.4% (+130bps), cRPO +15.6% yoy (+130bps), and FCFM of 46% (+500bps). The stock is +12% AH as, underneath the hood, Workday reiterated FY26 revenue guidance with backlog validating 2H revenue re-acceleration (record quarter of RPO/cRPO sequential net dollars added), raised FY26 OpM guidance +50bps, and showed momentum across growth pillars. We are increasingly positive on the following: 1) Full suite becoming a meaningful growth contributor, driving 30% of net new wins and with >2,000 customers, 2) Continued success in AI upsells, with 30% of customer expansion involving AI SKUs and Recruiting Agent NNACV nearly doubling qoq. As noted post-the launch of Agent System of Record, we are encouraged by Workday's pace of AI innovation and potential for pricing leverage, and 3) Partners are rapidly becoming a core aspect of Workday's selling motion, sourcing more than 15% of NNACV (vs. 10% in F3Q24). We also welcome the seasoned additions to Workday's leadership team, Rob Enslin and Gerrit Kazmaier. While investors fear Workday's customer base could be exposed to AI-induced headcount contraction, with the help of AI tools, the company should be able to retain and further monetize their base. We believe that if AI can help contribute to durable growth (alongside further margin leverage) the stock could re-rate in-line with Rule of 40+ peers that trade at 9x EV/CY26 Sales (vs. WDAY 7x)."