Investing.com -- Wells Fargo maintained its $215 price target on Workday Inc. ahead of the company's second-quarter results, noting that potential private equity deal headlines will likely have more impact on shares near-term than quarterly numbers.

The firm said Workday's platform value and position with enterprise customers supports the likelihood of a deal completion. About two-thirds of Fortune 500 companies use Workday, with more than 80 million users on the platform.

Wells Fargo expects a mixed second-quarter setup, with revenue guidance remaining conservative but tougher contracted remaining performance obligation comparisons potentially affecting third-quarter and second-half outlook. The firm anticipates shares will remain range-bound.

The bank's channel checks revealed consolidation in Workday's partner ecosystem, with at least seven boutique firms sold during the first half of 2026, including Intecrowd, Argano, Lumi, Commit, Syssero, EMD, and LRB Group. Partners identified the mid-market as the most promising growth area for Workday, though also the most competitive.

Workday faces headwinds on contracted remaining performance obligation comparisons for the rest of the year as it laps early renewals, testing environments, and merger impacts from Paradox and Sana acquisitions. Wells Fargo expects 150 basis points, 200 basis points, and 225 basis points of headwinds in second through fourth quarters on contracted remaining performance obligation growth.

The firm sees room for a second-quarter revenue beat of about 100 basis points and potential upside for the rest of the year with a possible 50 basis point full-year raise. Margins could also increase by 50 to 100 basis points.

Workday shares trade at 5 times enterprise value to sales and 15 times enterprise value to free cash flow on Wells Fargo's next-twelve-months estimate.