Core Insights - Hotchkis & Wiley Large Cap Disciplined Value Fund outperformed the Russell 1000 Value Index in Q4 2025 and for the full calendar year, driven by positive stock selection [1] - The S&P 500 Index returned 2.7% in Q4 2025, with a yearly gain of 17.9%, but high valuations have made investors cautious, particularly due to returns being concentrated in a few stocks [1] - Information technology and communication services sectors led performance in 2025, with significant variation within those sectors [1] Company-Specific Insights - Workday, Inc. (NASDAQ:WDAY) was highlighted as a leading relative detractor for the Fund, with a one-month return of -15.13% and a 52-week loss of 33.35% [2] - Workday's stock closed at $174.66 on January 29, 2026, with a market capitalization of $46.634 billion [2] - Despite a modest share price decline following strong Q2 results and reaffirmed full-year guidance, Workday is expected to grow sales in the teens for many years, supported by low customer churn rates and high gross margins [3] - The company is seen as having favorable business quality attributes compared to the average S&P 500 company, with a net cash balance sheet and a commitment to returning cash to shareholders [3]

Workday, Inc. (NASDAQ:WDAY) is one of the Best Long-Term Tech Stocks to Buy According to Analysts. On January 20, the company announced its plans to invest CA$1 billion in Canada over the next 5 years. This highlights Workday, Inc. (NASDAQ:WDAY)’s commitment to growth in Canada, including plans to further develop local tech talent and strengthen local customer support. Workday (WDAY) Announces Plans to Invest CA$1 billion in Canada The announcement comes at a time when the Canadian government is focused ...

Group 1 - Workday Inc. is viewed as a promising long-term investment, with Goldman Sachs initiating coverage at a Neutral rating and a price target of $238 [1][2] - Goldman Sachs' analysis is part of a broader coverage of 12 software stocks, emphasizing AI as a significant long-term growth driver that will expand the sector's Total Addressable Market (TAM) over the next decade [1][2] - Despite the positive outlook on AI, Goldman Sachs expressed caution regarding Workday's growth trajectory, indicating that the company may face challenges in capturing additional market share in its next phase of expansion [2][3] Group 2 - RBC Capital adjusted its price target for Workday from $320 to $300 while maintaining an Outperform rating, suggesting that 2026 will be a crucial year for companies ready for enterprise AI adoption [3] - The firm indicated that companies prepared for AI will see clear benefits, while those unprepared may struggle against the narrative that AI threatens traditional software models [3]

Core Insights - Sustainable Growth Advisers (SGA) reported a negative return of -1.3% (Gross) and -1.4% (Net) for its U.S. Large Cap Growth Strategy in Q3, underperforming the Russell 1000 Growth Index which returned 10.5% and the S&P 500 Index which returned 8.1% [1] - The investment strategy focuses on high-quality growth businesses with expected mid-teens earnings growth, but faced challenges as lower-quality stocks and cyclical industries outperformed in the market [1] Company-Specific Insights - Workday, Inc. (NASDAQ:WDAY) was highlighted in SGA's investor letter, reporting a one-month return of -0.85% and a 52-week loss of 14.72%, with a market capitalization of $57.346 billion as of December 31, 2025 [2] - SGA liquidated its position in Workday due to signs of a deteriorating competitive environment, particularly with increased pressure from rivals like SAP, despite Workday maintaining its annual revenue guidance [3] - Workday reported total revenue of $2.432 billion in its fiscal third quarter of 2026, reflecting a year-over-year growth of 13% [4]

Core Insights - Workday, Inc. (NASDAQ:WDAY) is considered one of the most undervalued tech giants, with 75% of analysts recommending it as a buy, indicating strong market confidence [1] - The median price target for Workday is set at $280, suggesting an upside potential of 27.38% from current levels, with individual targets ranging from $230 to $326 [1] - The company has shown solid financial performance, with fourth-quarter revenue guidance exceeding investor expectations and operating margins aligning with consensus estimates [3] Analyst Ratings - Siti Panigrahi from Mizuho Securities reiterated a 'Buy' rating for Workday, maintaining a price target of $275, reflecting a 25% upside potential [1] - Freedom Capital Markets adjusted its price target for Workday to $280 from $290 while keeping a 'Buy' rating after the company's third-quarter fiscal 2026 results [2] Financial Performance - Workday enhanced its product offerings through the integration of Paradox and accelerated its AI agent ecosystem, contributing to its strong financial performance [3] - The company raised its full-year 2026 revenue outlook while maintaining its operating margin projections, indicating confidence in future growth [3] Emerging Risks - Freedom Capital Markets identified risks such as the normalization of organic growth, contributions from M&A affecting contracted revenue backlog, and potential integration issues with newly acquired assets [4] - Despite the positive outlook, there are concerns regarding the sustainability of growth and the impact of acquisitions on revenue [4]

Core Insights - Brown Advisory's Large-Cap Growth Strategy reported a net return of -0.88% in Q3 2025, underperforming the Russell 1000 Growth Index due to underweighting speculative momentum-driven stocks despite significant AI exposure [1] Company Summary: Workday, Inc. (NASDAQ:WDAY) - Workday, Inc. experienced a one-month return of -8.20% and a 52-week decline of 20.76%, closing at $213.06 per share with a market capitalization of $56.887 billion as of December 02, 2025 [2] - Brown Advisory exited its position in Workday during Q3 2025 due to slower-than-expected revenue growth, reallocating capital to Samsara Inc. for better growth opportunities [3] - Workday reported total revenue of $2.432 billion in fiscal Q3 2026, reflecting a year-over-year growth of 13% [4]

Core Viewpoint - Workday, Inc. (NASDAQ: WDAY) has received an Overweight rating from Cantor Fitzgerald with a price target of $280, despite a mixed market reaction to its Q3 fiscal 2026 results [1][2]. Financial Performance - Workday reported better-than-expected performance across key metrics, with total revenue, operating margin, and earnings per share exceeding consensus estimates [3]. - Subscription revenue surpassed expectations by $9 million, reflecting a 0.4% upside to analyst projections [3]. - Current remaining performance obligations (cRPO) growth was 17.7%, slightly above the previous 16%, and at the high end of the company's guidance range of 15-16% [4]. - Current subscription bookings increased by 19% year-over-year, or about 14% when excluding the $100 million cRPO impact from Paradox, marking a deceleration from the previous quarter's 16.8% growth [5]. - Operating margin was reported at 28.5%, exceeding the consensus estimate of 28.1%, contributing to earnings per share of $2.32 compared to the expected $2.16 [5].

Core Insights - Workday, Inc. (WDAY) is a cloud applications provider with a market cap of $63.8 billion, offering solutions in human capital, spend, financial management, payroll, and higher education [1] - The company is expected to announce its fiscal third-quarter earnings for 2026 soon [1] Earnings Expectations - Analysts predict WDAY will report a profit of $0.90 per share, an 11.1% increase from $0.81 per share in the same quarter last year [2] - For the full fiscal year, EPS is expected to be $3.77, reflecting a 123.1% increase from $1.69 in fiscal 2025, with a further rise to $5.12 in fiscal 2027, a 35.8% year-over-year increase [3] Stock Performance - WDAY stock has underperformed the S&P 500 Index, which gained 18.4% over the past 52 weeks, with WDAY shares showing only marginal gains [4] - Following the Q2 results announcement on August 21, WDAY shares fell by 2.8%, despite an adjusted EPS of $2.21 beating expectations of $2.09, and revenue of $2.4 billion surpassing the $2.3 billion forecast [5] Analyst Ratings - The consensus opinion on WDAY stock is bullish, with a "Strong Buy" rating from 26 out of 38 analysts, while three suggest a "Moderate Buy" and nine give a "Hold" [6] - The average analyst price target for WDAY is $283.41, indicating a potential upside of 18.6% from current levels [6]

Core Insights - Benson Investment Management Company, Inc. fully exited its position in Oracle, selling 25,566 shares valued at approximately $5.6 million during the third quarter [1][2][7]. Company Overview - Oracle is a global leader in enterprise software and cloud infrastructure, with a market capitalization of about $835 billion [6]. - The company reported a total revenue of $59 billion and a net income of $12.4 billion for the trailing twelve months (TTM) [4]. - Oracle's dividend yield stands at 0.7%, and its share price was $292.96 as of the market close on Friday [4]. Financial Performance - Oracle's cloud revenue surged 28% year-over-year to $7.2 billion, while total revenue rose 12% to $14.9 billion [8]. - The growth was driven by a 55% increase in its cloud infrastructure unit, with CEO Safra Catz describing the quarter as "astonishing" due to four multi-billion-dollar contracts that increased Oracle's backlog to a record $455 billion [8]. Market Position - Oracle's shares have increased by approximately 66% over the past year, significantly outperforming the S&P 500's 12% gain during the same period [3][7]. - The company offers a comprehensive suite of products, including enterprise cloud applications, database technologies, middleware, and hardware, targeting large enterprises, government agencies, and educational institutions [9]. Strategic Focus - Oracle's strategy emphasizes expanding its cloud offerings and integrated technology stack to meet complex business needs across various industries [6]. - The company is also focusing on partnerships with major players like Amazon, Google, and Microsoft, and is set to launch an "Oracle AI Database" that integrates major language models into its cloud services [10].

Market Overview - Equities experienced significant growth in Q3 2025, with the S&P 500 Index increasing by 8.1% and the Nasdaq Composite rising by 11.2% to reach record highs [1] - Investor optimism was fueled by favorable tariff results, the One Big Beautiful Bill in July, anticipated interest rate cuts, and strong corporate earnings, particularly in the technology sector and the Magnificent Seven [1] - The Russell 1000 Growth Index rose by 10.5% during the quarter [1] ClearBridge Large Cap Growth Strategy Performance - The strategy delivered solid absolute performance in Q3 2025 but underperformed the benchmark due to underexposure to perceived AI winners and holding several stocks viewed as AI losers [1] - The fund's top five holdings were highlighted as key picks for 2025 [1] Workday, Inc. (NASDAQ:WDAY) Analysis - Workday, Inc. reported a one-month return of 2.18% and a 52-week gain of 0.59%, with shares closing at $236.48 and a market capitalization of $63.14 billion on October 3, 2025 [2] - ClearBridge exited positions in Workday and Accenture, citing decelerating fundamental growth and increasing risks related to AI [3] - Workday's core organic growth is slowing, particularly in the human capital management segment, and the company has not yet developed a comprehensive suite of AI tools to support pricing and growth opportunities [3] Workday's Financial Performance - In the fiscal second quarter of 2026, Workday reported total revenue of $2.348 billion, reflecting a year-over-year growth of 13% [4] - Despite acknowledging Workday's potential, ClearBridge believes that other AI stocks present greater upside potential and lower downside risk [4] - Workday is not among the 30 most popular stocks among hedge funds, with 76 hedge fund portfolios holding the stock at the end of Q2 2025, down from 85 in the previous quarter [4]