Overview
- Workday beat expectations for the latest quarter with $2.53 billion in revenue and $2.47 in adjusted earnings per share.
- Fiscal first‑quarter guidance disappointed, with subscription revenue projected at $2.335 billion and an adjusted operating margin of 30.5%.
- Shares have fallen about 48% over the past year and 35% year to date, with Jim Cramer citing AI competition and program trading for sharp swings after results.
- Cramer praised the executive now running Workday as a seasoned leader, arguing that management quality is a key factor for investors.
- Baird cut its price target to $190 while keeping an Outperform rating, and BTIG lowered its target to $230 with a Buy rating and warned that Workday’s AI strategy will require hefty investment.