William Blair analyst Patrick McIlwee has maintained their bullish stance on WDAY stock, giving a Buy rating today.
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Patrick McIlwee has given his Buy rating due to a combination of factors tied to Workday’s strong fundamentals and attractive valuation. He points to first-quarter results that exceeded expectations across subscription revenue, cRPO, and profitability, alongside the company’s best new ACV performance for a first quarter in five years, signaling renewed strength in the core business and accelerating demand for its AI offerings.
He also emphasizes the rapid progress in monetizing agentic AI, with net new AI-related ACV more than tripling year-over-year and agentic ARR nearing $500 million, while management still embeds some conservatism in its full-year outlook. Coupled with an upward revision to operating margin guidance and shares trading at a sizable discount to similar software peers on projected free cash flow, he views the recent pullback as overdone and the current setup as a compelling risk/reward as enterprise AI adoption continues to gather pace.
In another report released today, Barclays also assigned a Buy rating to the stock with a $200.00 price target.