Workday Plunges 11.2% as Analysts Cut Price Targets

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.

Workday's recent decline can be attributed to several factors, including a reduction in price targets by major financial institutions. Loop Capital, for instance, lowered its price target from $285.00 to $250.00 and set a "hold" rating for the company. Similarly, Bernstein SocGen Group adjusted its price target to $325 from the previous $348, reflecting a more cautious outlook on the stock's future performance.

Despite these setbacks, some analysts remain optimistic about Workday's prospects. JMP Securities reiterated a "market outperform" rating and set a $315.00 price target, indicating confidence in the company's long-term growth potential. This mixed sentiment highlights the complexity of Workday's current market position, with both bullish and bearish views influencing investor decisions.

Additionally, Workday's first-quarter results, which exceeded expectations on both earnings and revenue, failed to bolster investor confidence. The stock fell over 10% intra-day, suggesting that market participants are focusing more on short-term volatility rather than long-term fundamentals. This discrepancy underscores the challenges Workday faces in maintaining investor trust amidst a fluctuating market environment.