Workday (NASDAQ:WDAY) Cut to “Hold” at Mizuho

Mizuho downgraded shares of Workday (NASDAQ:WDAY) from a strong-buy rating to a hold rating in a report published on Monday,Zacks.com reports.

Other research analysts have also issued research reports about the stock. Needham & Company LLC reissued a “buy” rating and set a $300.00 target price on shares of Workday in a research report on Thursday, February 5th. Morgan Stanley cut their price objective on Workday from $280.00 to $200.00 and set an “equal weight” rating for the company in a research report on Monday. UBS Group decreased their target price on Workday from $240.00 to $170.00 and set a “neutral” rating for the company in a research note on Tuesday, February 10th. Citizens Jmp lowered Workday from an “outperform” rating to a “market perform” rating in a report on Wednesday, February 18th. Finally, Wells Fargo & Company cut their price target on Workday from $290.00 to $255.00 and set an “overweight” rating for the company in a report on Wednesday, February 18th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and fifteen have issued a Hold rating to the stock. According to data from MarketBeat.com, Workday presently has a consensus rating of “Moderate Buy” and an average price target of $208.28.

Workday Stock Up 2.2%

WDAY opened at $133.15 on Monday. The firm has a market cap of $35.02 billion, a P/E ratio of 51.61, a price-to-earnings-growth ratio of 1.12 and a beta of 1.13. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.83 and a current ratio of 1.83. The business has a 50 day moving average price of $182.80 and a 200 day moving average price of $212.95. Workday has a twelve month low of $117.76 and a twelve month high of $281.00.

Workday (NASDAQ:WDAY) last announced its quarterly earnings results on Tuesday, February 24th. The software maker reported $2.47 EPS for the quarter, beating the consensus estimate of $2.32 by $0.15. Workday had a return on equity of 12.93% and a net margin of 7.26%.The company had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.52 billion. During the same quarter last year, the company posted $1.92 earnings per share. The company’s revenue for the quarter was up 14.5% compared to the same quarter last year. Research analysts forecast that Workday will post 2.63 EPS for the current year.

Insider Buying and Selling at Workday

In related news, major shareholder David A. Duffield sold 82,884 shares of Workday stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $209.75, for a total transaction of $17,384,919.00. Following the completion of the transaction, the insider directly owned 105,049 shares of the company’s stock, valued at $22,034,027.75. This trade represents a 44.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Richard Harry Sauer sold 1,130 shares of the company’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $210.00, for a total transaction of $237,300.00. Following the sale, the insider directly owned 85,398 shares in the company, valued at $17,933,580. This represents a 1.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 370,321 shares of company stock worth $78,866,401 over the last ninety days. Company insiders own 19.31% of the company’s stock.

Hedge Funds Weigh In On Workday

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Pacer Advisors Inc. raised its holdings in shares of Workday by 840.9% in the fourth quarter. Pacer Advisors Inc. now owns 765,049 shares of the software maker’s stock valued at $164,317,000 after buying an additional 683,741 shares during the last quarter. Virtu Financial LLC bought a new stake in Workday during the 4th quarter worth about $2,518,000. Compound Planning Inc. increased its position in Workday by 32.8% in the 4th quarter. Compound Planning Inc. now owns 2,818 shares of the software maker’s stock valued at $605,000 after acquiring an additional 696 shares in the last quarter. Invesco Ltd. raised its stake in shares of Workday by 7.0% in the fourth quarter. Invesco Ltd. now owns 2,552,061 shares of the software maker’s stock worth $548,132,000 after acquiring an additional 166,564 shares during the last quarter. Finally, Rare Wolf Capital LLC acquired a new position in shares of Workday during the fourth quarter worth approximately $215,000. Institutional investors and hedge funds own 89.81% of the company’s stock.

Workday News Summary

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Q4 results beat consensus — revenue of $2.53B, EPS $2.47 and improved margins, showing solid subscription growth and stronger operating profit that underpins longer-term fundamentals. Workday Announces Fiscal 2026 Fourth Quarter and Full Year Financial Results
• Positive Sentiment: Some analysts and investors still see a buy case — Needham and several boutiques continue to rate WDAY bullish and highlight AI opportunity and institutional accumulation as potential catalysts. Balancing Near-Term Headwinds and AI-Driven Long-Term Upside: Rationale for a Buy Rating
• Neutral Sentiment: CEO sought to calm AI-disruption fears on the call, noting large AI vendors run on Workday’s systems — a credibility point for the platform but one that didn’t reverse the initial selloff. Workday Shares Drop 9% as CEO Says OpenAI, Google Use Its Software
• Negative Sentiment: Management guided FY27 subscription revenue below Wall Street expectations (growth guided down to ~12–13%), stoking concerns that macro weakness and longer deal cycles will slow top-line momentum. That guidance is the primary driver of the selloff. Workday forecasts 2027 annual subscription revenue below estimates
• Negative Sentiment: Analysts aggressively trimmed price targets and issued downgrades after the outlook — examples include UBS to $130 (neutral), Piper Sandler to $135 (neutral) and multiple other cuts; that wave amplifies selling pressure and amplifies headline risk. These Analysts Slash Their Forecasts On Workday After Q4 Results
• Negative Sentiment: Short interest rose sharply in February (≈12.99M shares, ~6.2% of float, up ~34% month-over-month), increasing downside pressure and the potential for outsized moves on intraday sentiment shifts.

Workday Company Profile

Workday, Inc (NASDAQ: WDAY) is a provider of cloud-based enterprise applications focused on human capital management (HCM) and financial management. Founded in 2005 by Dave Duffield and Aneel Bhusri following their tenure at PeopleSoft, the company develops software-as-a-service solutions that help organizations manage workforce and financial processes in a unified, cloud-native environment. Workday’s platform emphasizes continuous updates, data security, and a configurable architecture aimed at large and mid-sized enterprises.

The company’s product portfolio centers on Workday Human Capital Management and Workday Financial Management, with additional offerings for payroll, talent management, workforce planning and analytics.