Workday (WDAY) PT Lowered to $278 at BofA Securities

BofA Securities analyst Brad Sills lowered the price target on Workday (NASDAQ: WDAY) to $278.00 (from $295.00) while maintaining a Buy rating.

The analyst comments "Given somewhat mixed, though largely in line deal activity, we are not expecting upside to our estimate for Q2 cRPO growth of 15.5% y/y. Also, with commentary for healthy/ consistent pipeline builds for H2, we remain comfortable with our estimate for Q3 cRPO growth of 15.5% y/y, flat with Q2, on an 80 basis point easier comparison. Regarding margin, there are no major investment cycles underway and Workday remains committed to a balanced growth philosophy. As a result, the company has raised FY26 margin 50 basis points in each quarter since the initial Q3FY25 guide. Therefore, we expect upside to our Q2 and FY26 estimates for operating margin of 28% and 28.5%, respectively."

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