Workday Inc. (NASDAQ: WDAY) received a bullish upgrade from Oppenheimer on Monday, as analyst Ken Wong raised the stock's price target to $220 from $165 while maintaining an Outperform rating.
The new target reflects confidence in Workday's AI momentum, stable demand and high gross margins of 75.77%, alongside expectations that second-quarter results will align with fiscal 2027 financial targets. The stock last traded near $200, up 53.58% over the past six months.
Oppenheimer's upgrade comes ahead of Workday's fiscal second-quarter earnings release scheduled for August 27. The firm noted that potential private equity interest, reported by Reuters on August 13, could support valuation multiples even in the event of a weak earnings print. Wells Fargo similarly highlighted the impact of acquisition talks, suggesting deal risk may outweigh quarterly performance in the second half of 2026.
Other analysts have adjusted their outlooks. Cantor Fitzgerald maintained an Overweight rating with a $220 target, while Guggenheim reiterated a Buy rating with a $275 target. TD Cowen raised its target to $220 from $155 but kept a Hold rating. Barclays expects muted top-line beats and solid margin upside, likely with full-year guidance reiterated. Wells Fargo emphasized Workday's strong platform value and its significant presence among Fortune 500 companies.
Oppenheimer also warned of risks including AI disruption, execution challenges and subscription growth durability in the coming months.
