Workday Stock Retreats As Guidance Overshadows Solid Quarter

by | Feb 25, 2026 | General

Workday, Inc. (NASDAQ:WDAY) shares are trading lower Wednesday. The company fourth-quarter financial results on Tuesday after the market closed.

Double Beat Accompanied By Subscription Strength, Soft Outlook

The company reported adjusted earnings per share of $2.47, beating the consensus estimate of $2.32. In addition, Workday reported revenue of $2.53 billion, beating the consensus estimate of $2.52 billion.

Subscription revenue increased 15.7% year-over-year in the fourth-quarter, outpacing total revenue growth of 14.5%.

“We built Workday to bring innovation back to the worlds of HR and finance, and AI gives us the chance to do it all again,” said Aneel Bhusri, co-founder, CEO and chair, Workday.

“We operate at the heart of the global enterprise, where trust and accuracy matter most. That gives Workday a unique opportunity to bring AI directly into the HR and finance workflows our customers rely on every day and to deliver real, measurable value.”

Looking ahead, the company sees first-quarter revenue of $2.51 billion, versus the consensus estimate of $2.53 billion. Furthermore, Workday expects fiscal-year revenue between $10.63 billion and $10.66 billion, versus the consensus estimate of $10.72 billion.

Consensus Ratings And Analyst Actions

Workday has a consensus rating of Buy and a consensus price target of $237.00. Recent analyst actions include:

  • Piper Sandler analyst Billy Fitzsimmons maintained a Neutral rating on Workday and lowered the price target from $200 to $135.
  • Evercore ISI Group analyst Kirk Materne downgraded Workday from an Outperform to an In-Line rating and lowered the price target from $200 to $160.
  • BTIG analyst Allan Verkhovski maintained a Buy rating on Workday and lowered the price target from $230 to $175.
  • Needham analyst Scott Berg maintained a Buy rating on Workday and maintained a $300 price target.

Workday Stock Falls Lower

WDAY Price Action: At the time of writing, Workday shares are trading 10.31% lower at $116.79, according to data from Benzinga Pro.

Image via Shutterstock