These Analysts Cut Their Forecasts On Workday After Q1 Results


Workday, Inc. WDAY posted upbeat earnings for its first quarter on Thursday.

Workday reported quarterly earnings of $1.74 per share which beat the analyst consensus estimate of $1.58 by 10.13%. Quarterly sales came in at $1.99 billion which beat the analyst consensus estimate of $1.973 billion and represents an 18.17% increase over sales of $1.684 billion from the same period last year, according to data from Benzinga Pro.

However, the company lowered its forward guidance and now sees second-quarter subscription revenue of $1.895 billion and fiscal-year subscription revenue of between $7.7 billion and $7.725 billion.

"Q1 was another solid quarter of revenue growth and non-GAAP operating margin expansion for Workday, as we drive toward long-term, durable growth," said Workday CEO Carl Eschenbach. "With the emergence of Generative AI, the shifting talent landscape, and pressure to realize operational efficiencies, Workday has never been more relevant. Our strong value proposition, investments in key growth initiatives, and leadership in AI are paying off as more organizations turn to Workday to manage their two most important assets — their people and money."

Workday shares rose 0.4% to close at $260.90 on Thursday.

These analysts made changes to their price targets on Workday after the company reported quarterly results.

  • Piper Sandler cut the price target on Workday from $330 to $280. Piper Sandler analyst Brent Bracelin maintained an Overweight rating.
  • Mizuho lowered Workday price target from $325 to $280. Mizuho analyst Siti Panigrahi maintained a Buy rating.
  • Keybanc slashed the price target on Workday from $330 to $275. Keybanc analyst Jason Celino maintained an Overweight rating.
  • Oppenheimer cut the price target on Workday from $320 to $300. Oppenheimer analyst Brian Schwartz maintained an Outperform rating.

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