Workday: Institutions Are Buying This Stock, Shouldn't You?

Core Insights - Workday's stock price has struggled in 2025, but the company continues to perform well, exceeding consensus estimates and focusing on growth efforts, particularly in AI and enterprise automation [1][4] - The company reported strong FQ2 results, with significant improvements in GAAP and adjusted margins, indicating enhanced operational quality and profitability [2][3] - Workday's balance sheet shows improving quality, with cash and equivalents increasing, total liabilities decreasing, and a low leverage ratio, positioning the company well for future investments [6] Financial Performance - Workday achieved $2.35 billion in net revenue for Q2, representing a nearly 13% year-over-year increase, driven by a 14% rise in core subscription services [4] - The company forecasts over a 14% revenue increase for Q3 and the year, indicating strong growth momentum despite macroeconomic challenges [5] Analyst Sentiment - Analysts have a 12-month stock price forecast of $283.76, suggesting a 28.24% upside from the current price of $221.27, with a consensus rating of Moderate Buy [7][8] - Institutional ownership is robust, with nearly 90% of the stock held by institutions, indicating strong buying activity [9] Market Trends - The stock price is expected to rebound, with critical support near $210 and resistance around $235, suggesting potential for upward movement [10]