Cautious Analyst Sentiment on Workday (WDAY) Amid Near-Term Margin Pressure

Workday, Inc. (NASDAQ:WDAY) is on our list of the 11 best value stocks to invest in according to billionaires.

Analysts are more focused on Workday, Inc. (NASDAQ:WDAY) as the enterprise software company balances near-term margin headwinds with larger investments in artificial intelligence (AI) to sustain long-term growth.

As of March 9, 2026, roughly 60% of analysts remain bullish on Workday, Inc. (NASDAQ:WDAY), reflecting a moderately cautious overall sentiment.

Underperforming the software application market, Workday, Inc.’s (NASDAQ:WDAY) shares declined more than 40% over the past year, while the industry declined more than 25% over the same period. The consensus price target stands at $177.50, suggesting around 20% upside potential.

Amid this, recent analyst revisions in February reflect investor concerns about the company’s profitability and growth trajectory.

Morgan Stanley reduced its price target for Workday, Inc. (NASDAQ:WDAY) from $200 to $185 in February 2026 while keeping an “Equal Weight” rating. The firm noted that investors would continue to focus on near-term margin pressure and a longer timeline for returns, which might keep the stock range-bound.

Meanwhile, Stifel maintained a “Hold” rating last month, while trimming its price target from $175 to $115.

According to the firm, Workday, Inc. (NASDAQ:WDAY)’s FY2028 operating margin targets of 35% may not be met due to management’s plan to accelerate AI investments. This also points to a slowdown in Q1 subscriber growth projections.

Workday, Inc. develops enterprise cloud applications for finance and human resources, delivering financial management, human capital management, and analytics applications designed for companies, educational institutions, and government agencies.

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