Workday price target lowered to $298 from $304 at Bernstein

Bernstein analyst Mark Moerdler lowered the firm’s price target on Workday (WDAY) to $298 from $304 and keeps an Outperform rating on the shares. The firm notes Workday delivered another in-line quarter, beating slightly on most metrics and slightly raised FY revenue, but that did not impress the Street enough as the stock was trading down about 6% in the aftermarket. The reaction, Bernstein believes, is driven by the FY27 guidance of 13% subscription revenue growth leaving investors wondering whether growth will become stable or will keep decelerating, and the AI overhang continuing on how AI will impact enterprise software.