Valued at $60.1 billion by market cap, Pleasanton, California-based Workday, Inc. (WDAY) operates as a provider of enterprise-level software solutions for financial management and human resource domains. Workday serves companies of different sizes in various sectors, including technology, financial services, retail, education, and more.

The company has significantly underperformed the broader market over the past year and in 2025. WDAY stock prices have plunged 15.4% over the past 52 weeks and approximately 12.2% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 12% returns over the past year and 14% surge in 2025.

Narrowing the focus, Workday has also underperformed the sector-focused Technology Select Sector SPDR Fund’s (XLK) 19.7% surge over the past 52 weeks and 20.3% gains on a YTD basis.

Despite reporting better-than-expected financials, Workday’s stock prices declined 2.8% in the trading session following the release of its Q2 results on Aug. 21. The company’s subscription revenues surged 14% year-over-year to $2.2 billion. This led to its overall topline growing 12.6% year-over-year to $2.35 billion, exceeding the Street expectations by 35 bps. Meanwhile, its cash flow from operations increased 7.9% year-over-year to $616 million. Further, its adjusted EPS surged 26.3% year-over-year to $2.21, surpassing the consensus estimates by 5.7%.

Following the initial dip, WDAY stock prices gained nearly 1% in the subsequent trading session.

For the full fiscal 2026, ending in January, analysts expect Workday to deliver an adjusted EPS of $8.89, up 21.8% year-over-year. Further, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line projections in each of the past four quarters.

Among the 39 analysts covering the WDAY stock, the consensus rating is a “Moderate Buy.” That’s based on 25 “Strong Buys,” three “Moderate Buys,” and 11 “Holds.”

This configuration is slightly less optimistic than a month ago, when the stock had 26 “Strong Buy” ratings on it.

On Sept. 19, DA Davidson analyst Gil Luria reiterated a “Neutral” rating on WDAY and raised the price target from $225 to $260.

As of writing, WDAY’s mean price target of $282.06 represents a 24.5% premium to current price levels. Meanwhile, the street-high target of $340 suggests a staggering 50% upside potential.

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