Yahoo Financeยท2025-09-20 10:18Company Overview - Workday operates a flexible AI-powered, cloud-based platform that manages back-office functions for enterprise-scale businesses, including HR, finance, and customer service [4] - The company serves over 11,000 clients across various industries, including healthcare, financial services, and technology, with operations in more than 175 countries [2][4] Financial Performance - In fiscal 2Q26, Workday reported a revenue of $2.35 billion, reflecting a 13% year-over-year increase and exceeding forecasts by $10 million [9] - The non-GAAP EPS for the same quarter was $2.21, which was 9 cents higher than expected [9] - Workday's full-year guidance for fiscal 2026 subscription revenues is projected at $8.815 billion, indicating a 14% year-over-year growth, which is lower than the 16% growth achieved in fiscal 2025 [9] Market Position and Analyst Insights - Despite facing headwinds, analysts like Guggenheim's John DiFucci believe Workday's growth potential outweighs current challenges, with a Buy rating and a price target of $285, suggesting a 22% upside [10] - The stock currently has a Strong Buy consensus rating, with 22 Buy and 7 Hold ratings, and is trading at $233.50, with an average target price of $281.42, indicating a potential gain of 20.5% in the next 12 months [11] Industry Context - The AI and cloud software sector is experiencing growth, with AI driving recent market rallies, although Workday's stock has declined by 9.5% year-to-date due to temporary setbacks [1][5] - Analysts emphasize the importance of distinguishing between short-term declines and deeper structural issues, suggesting that fundamentally sound stocks may present investment opportunities during dips [6][7]