Workday Stock Plunges 11.2% Amid Lawsuit, Analyst Downgrades

On May 26, 2025, Workday's stock experienced a significant drop of 11.2% in pre-market trading, sparking concerns among investors and analysts alike.

Analysts from JMP reaffirmed their Market Outperform rating for Workday, maintaining a stable price target of $315. This endorsement came after a thorough evaluation of the company's performance and market position.

Citigroup, however, took a more cautious stance, lowering their rating for Workday from "neutral" to "mixed." This change in rating reflects the bank's concerns about the company's future prospects and market conditions.

Loop Capital also adjusted its outlook for Workday, reducing its target price from $285.00 to $250.00 and setting a "hold" rating. This move indicates a more conservative view on the stock's potential for growth.

Bernstein SocGen Group also made adjustments to its stance on Workday, reducing the price target to $325 from the previous $348. This revision suggests a more cautious outlook on the company's future performance.

Workday's stock decline was also influenced by a lawsuit claiming that the company's AI job screening technology discriminates against certain groups. This legal challenge adds to the company's challenges and could impact its reputation and market position.

Despite the recent setbacks, some investors remain optimistic about Workday's long-term prospects. The company's strong fundamentals and innovative technology continue to attract attention from both institutional and retail investors.