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Workday (WDAY) Earns Buy Rating as BTIG Calls Outlook “De-Risked”

Workday, Inc. (NASDAQ:WDAY) is included among the 12 Best Long Term US Stocks to Buy Now.

Photo by Dan Dennis on Unsplash

On December 17, BTIG started coverage of Workday, Inc. (NASDAQ:WDAY) with a Buy rating and a $285 price target. According to the analyst, the stock has gone nowhere for about two years, despite annual subscription revenue growing 16% and free cash flow rising about 18%. BTIG views next year’s numbers as “de-risked.”

Workday, Inc. (NASDAQ:WDAY) shares are down nearly 14% so far in 2025. Software stocks have struggled this year as investors worry that generative AI tools, especially those that can write code quickly, could disrupt established players. Workday has been leaning into that shift. It rolled out several AI agents this year and added new capabilities through small acquisitions.

In early November, the company closed its $1.1 billion purchase of Sana, an AI-driven learning software firm. Even so, the stock stayed under pressure, which further picked up after the third-quarter earnings. For the fiscal year ending January 2026, Workday, Inc. (NASDAQ:WDAY) forecast $8.83 billion in subscription revenue. That points to about 14.4% growth. The catch is that the outlook only increased by $13 million from the guidance issued in August.

Finance chief Zane Rowe told analysts on the earnings call that the updated figure includes contributions from Sana and a contract with the US Defense Intelligence Agency.

Workday, Inc. (NASDAQ:WDAY) is best known for its cloud-based software used in finance, human resources, and student information systems.

While we acknowledge the potential of WDAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDAY and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Best Blue-Chip Stocks with Growing Dividends and 12 Best Dogs of the Dow to Invest in.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
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  • 140 Metas
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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