BMO Capital Downgrades Workday to Outperform with PT at $285

BMO Capital Downgrades Workday to Outperform with PT at $285

BMO Capital has downgraded its rating on Workday (NASDAQ: WDAY) to "Outperform" while adjusting its price target to $285. The move follows Workday's recent earnings report, which showed a healthy beat on expectations but was accompanied by effectively unchanged forward guidance. The stock, currently trading at $227.58, has a market capitalization of approximately $61 billion and maintains strong financial health [1].

The downgrade comes as Workday reported its fiscal second-quarter 2026 earnings, surpassing analyst expectations with non-GAAP earnings per share of $2.21 compared to the forecasted $2.11. The company also reported revenue of $2.35 billion, slightly above the consensus estimate of $2.34 billion, with a year-over-year growth rate of 13%. Despite these positive earnings results, Workday's stock faced a decline in after-hours trading, influenced by implied lower guidance for the second half of fiscal 2026 [1].

Analysts have responded to these developments with varied outlooks. BMO Capital lowered its price target for Workday to $285, citing a cautious outlook, while maintaining an Outperform rating. Goldman Sachs also adjusted its price target to $280, maintaining a Buy rating, following the company’s subscription revenue growth of 14% and operating margins of 29%. BofA Securities reduced its price target to $265, noting macroeconomic concerns but still holding a Buy rating. Meanwhile, JMP Securities reiterated a Market Outperform rating with a price target of $315, despite the stock’s decline [1].

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References:
[1] https://www.investing.com/news/analyst-ratings/workday-stock-price-target-lowered-to-225-from-250-at-da-davidson-93CH-4206397