10 AI Stocks on Wall Street’s Radar

3. Workday, Inc. (NASDAQ:WDAY)

Number of Hedge Fund Holders: 85

Workday, Inc. (NASDAQ:WDAY) is one of the 10 AI Stocks On Wall Street’s Radar. On August 15, Evercore ISI analyst Kirk Materne reiterated an Outperform rating on the stock with a $275.00 price target. The rating affirmation comes ahead of Workdays’ earnings report due on August 21.

The firm anticipates Workday to deliver a “small beat” against the subscription revenue guidance of $2.16 billion. This represents 13.5% growth. However, it expects no major changes to the company’s fiscal year 2026 subscription revenue growth forecast of approximately 14%.

“Adjusting for the F1Q leap day headwind, the current F2Q guidance essentially implies a continuation of F1Q trends into F2Q and why we see a ’slight beat’ being reasonable despite mixed partner checks.”

Evercore ISI also believes it would be useful if the management provides commentary around Workday’s AI-related contribution.  Overall, the broader takeaway is that Workday is managing well despite the “choppier macro” backdrop. Expectations for the future look reasonable as well.

“In our view, any commentary around the AI-related contribution to growth would be helpful as well as any commentary that provides more confidence in the implied 2H acceleration in guidance. In terms of CRPO, we believe that anything close to 16% (vs. guidance of 15%-16%) would be ‘good enough’ and an outlook for F3Q of ~15.5% at the midpoint would be our base case assumption. In our view, the broader takeaway from the quarter is likely to be that Workday is executing in a choppier macro and the forward expectations seem reasonable, as the ‘terminal risk’ debate is unlikely to get settled in the near-term regardless of the quarterly results.”

Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.