TD Cowen maintained a positive stance on Workday (NASDAQ:WDAY), reiterating a Buy rating and a price target of $290.00. The endorsement follows a recent meeting with Workday executives during TD Cowen's Software Bus Tour in San Francisco.
The firm's analyst highlighted that macroeconomic conditions appear to be stabilizing and that Workday continues to explore growth opportunities. The areas of focus mentioned include financials, partnerships, and international expansion. Workday's management team, including SVP Lionel Liniger and VP Justin Furby, provided insights into the company's go-to-market (GTM) strategy adjustments.
During the visit, Workday's management shared details on recent changes to their market guidance and discussed the company's pricing strategy over time. The commentary from the executives was aimed at providing a clearer understanding of Workday's strategic direction and operational adjustments.
The affirmation of the $290.00 price target suggests that TD Cowen sees a steady path ahead for Workday's shares. The firm's continued Buy rating indicates confidence in Workday's ability to execute its growth strategies and capitalize on the more stable market conditions.
In other recent news, Workday Inc . reported a 17% rise in subscription revenue, achieving $1.903 billion and adjusting its revenue growth forecast to 15%. The company also established ambitious financial targets for fiscal 2027, including a 34% operating cash flow margin and a 30% free cash flow margin. Goldman Sachs (NYSE:GS) upgraded its price target for Workday from $300 to $305, maintaining a Buy rating, while Oppenheimer reiterated an Outperform rating.
Workday has pledged support for the Grace Hopper Celebration 2024, underscoring its commitment to gender diversity in the technology sector. The company also announced that Doug Robinson, Co-President, will retire in 2025 after a 14-year tenure, continuing to serve as an Advisor until April 30, 2025. In addition, Rhonda J. Morris, Chevron Corporation (NYSE:CVX)'s vice president and chief human resources officer, has been appointed to Workday's Board of Directors, effective early 2025.
Workday Ventures, the company's strategic capital arm, invested in 10 new AI companies, aiming to enhance productivity and decision-making in the workplace. The company also launched 12 new Industry Accelerators, aimed at enhancing HR and finance operations across various sectors. Furthermore, Workday acquired Evisort, an AI-powered contract management platform, and launched four new AI agents: Recruiter, Expenses, Succession, and Workday Optimize.
InvestingPro Insights
To complement TD Cowen's positive outlook on Workday (NASDAQ:WDAY), recent data from InvestingPro provides additional context to the company's financial position and market valuation. Workday's market capitalization stands at $64.7 billion, reflecting its significant presence in the enterprise software sector. The company's revenue for the last twelve months as of Q2 2025 reached $7.86 billion, with a notable revenue growth of 17.07% over the same period.
InvestingPro Tips highlight Workday's impressive gross profit margins, which align with the company's strong financial performance mentioned in the article. The gross profit margin for the last twelve months as of Q2 2025 was 75.77%, underscoring Workday's ability to maintain profitability while pursuing growth strategies in financials, partnerships, and international markets.
Another relevant InvestingPro Tip notes that Workday is trading at a high earnings multiple, with a P/E ratio of 41.98. This valuation suggests that investors have high expectations for the company's future growth, which is consistent with TD Cowen's optimistic price target of $290.00.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Workday, providing a deeper dive into the company's financial health and market position.
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