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]

Workday, Inc. (NASDAQ:WDAY) is among the most undervalued tech giants to buy according to hedge funds. As of December 26, Workday, Inc. (NASDAQ:WDAY) is a buy from 75% of the analysts covering the stock. While the target price ranges from $230 to $326, the median price target of $280 translates to an upside potential of 27.38%. Among the analysts positive on the stock is Siti Panigrahi, an analyst at Mizuho Securities, who reiterated a ‘Buy’ rating on the company and maintained a $275 price target on Decem ...

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]

Company Overview - Workday, Inc. is a leading provider of enterprise cloud applications focused on human capital management (HCM), financial management, and analytics across various industries including government, hospitality, and financial services [1] Investment Focus - The company is recognized for its strong emphasis on growth stocks, particularly those integrating artificial intelligence into their operations and possessing a competitive advantage within their sector [1] Market Strategy - The investment strategy revolves around identifying stocks with high growth potential that are undervalued in the market, aiming to build a portfolio that emphasizes growth rather than following market trends [1]

Core Insights - Workday, Inc. has been upgraded to "Neutral" from "Underweight" by Piper Sandler, with a new price target of $235.00, up from $220.00, following significant announcements at Workday Rising [1][3] - The company is making strides in the AI sector through three recent acquisitions: Sana, Paradox, and Flowise, indicating a commitment to enhancing its relevance in the AI era [2] - Workday has introduced new Flex Credit options and a new data cloud with zero-copy interfaces into Databricks, Snowflake, and Salesforce, which are expected to contribute to future growth despite current execution risks [3] Company Developments - The leadership at Workday is ramping up efforts to increase its relevance in the AI landscape, as evidenced by recent acquisitions and product innovations [2][3] - The company has faced a -15% year-to-date sell-off, contrasting with a +12% performance of the S&P 500, prompting the rating upgrade based on a balanced risk-reward outlook [3] Market Position - While Workday shows potential as an investment, there are other AI stocks perceived to offer greater upside potential and lower downside risk [4]

Core Insights - Workday, Inc. is recognized as a notable AI stock, with a Buy rating and a price target of $300.00 set by Needham analyst Scott Berg ahead of the annual Analyst Day on September 16 [1] - The company is expected to lower its subscription revenue growth target for FY27 from over 15% to approximately 13% due to macroeconomic challenges affecting ERP migrations [3] - Workday aims to revitalize growth through a differentiated AI strategy and an expanding partner network [2][3] Financial Performance - Workday reported a 14% growth in subscription revenue for Q2, which is contributing to the anticipated reduction in future growth targets [3] - The operating margin target is expected to be raised from the current level of around 30% to compensate for the lower growth profile [1][3] Strategic Focus - The upcoming Analyst Day is expected to emphasize growth expectations and the company's long-term strategy centered on AI differentiation and partnerships [2][3] - Workday's enterprise cloud applications are positioned to leverage AI advancements to enhance their market presence [3]