Baird Lowers Workday (WDAY) Price Target after Reduced 2027 Guidance

Workday, Inc. (NASDAQ:WDAY) is included among the 14 Best GARP Stocks to Buy According to Analysts.

On February 25, Baird analyst Mark Marcon lowered the price target on Workday, Inc. (NASDAQ:WDAY) to $190 from $195 and maintained an Outperform rating on the shares. The firm updated its model following the company’s Q4 results, which included reduced guidance for 2027.

On February 25, Workday issued a softer sales forecast. This raised concerns among investors about the company’s ability to remain competitive as AI adoption accelerates. The stock fell 8.3% in early trading and dropped to its lowest level in more than five years.

The decline added to a broader selloff. Shares were already down about 40% this year. Investors reacted to fears that artificial intelligence tools developed by companies such as Anthropic could reduce demand for traditional software products. The recent performance has made Workday one of the weakest-performing U.S. software stocks this year. CEO and co-founder Aneel Bhusri addressed these concerns during the post-earnings call. He emphasized the company’s ongoing investments in AI.

He told analysts, “Just for what it is worth, Anthropic, Google and OpenAI all run Workday.” Bhusri recently returned as chief executive this month after stepping down as co-CEO in 2024. The company also said some large deals were taking longer to close. This was particularly true in government and healthcare, where sales cycles tend to move more slowly.

Workday, Inc. (NASDAQ:WDAY) provides an artificial intelligence platform designed to help organizations manage their workforce, finances, and digital agents. The company serves more than 11,000 organizations with cloud-based solutions that use AI to support daily operations and address complex business challenges.

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