Needham Affirms Workday Inc. (WDAY) ‘Buy’ Rating on Growth Bounce Back

Core Viewpoint - Workday, Inc. is considered one of the best long-term tech stocks to buy, with a Buy rating and a $300 price target reiterated by Needham, despite a forecasted decrease in fiscal year 2027 subscription revenue growth from 15% to 13% [1][2]. Group 1: Company Overview - Workday, Inc. provides cloud-based software (SaaS) for businesses to manage finance and human resources functions, including financial management, human capital management (HCM), planning, and payroll [3]. Group 2: Growth Expectations - Needham attributes the expected slower growth rate to slowdowns in Enterprise Resource Planning (ERP) migrations [2]. - Despite the anticipated slower growth, Needham expects Workday to raise its operating margin target from the current 30% [2]. Group 3: Strategic Focus - Workday's long-term strategy includes revitalizing growth through the integration of artificial intelligence and pursuing strategic partnerships [2].