WDAY Should I Buy
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Based on the investor's long-term strategy and beginner level, Workday Inc (WDAY) is not a strong buy at the moment. While the company's financial performance shows growth, the technical indicators and recent analyst sentiment suggest caution. The stock's current price trend is bearish, and the recent leadership change raises concerns about near-term growth. For a long-term investor, it may be better to wait for more clarity on the company's strategic direction and stabilization of its stock price.
The technical indicators for WDAY are bearish. The MACD histogram is negative and contracting, the RSI is neutral at 26.769, and the moving averages show a bearish alignment (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 144.237, with resistance at 158.455. Overall, the trend indicates weakness.
Revenue increased by 12.59% YoY in Q3 2026, with net income up 30.57% and EPS up 29.07%.
Gross margin improved slightly to 75.7%.
Analysts maintain a positive long-term outlook on the software sector, with some seeing potential in undervalued stocks.
Recent leadership change with the return of co-founder Aneel Bhusri as CEO raises concerns about near-term growth and operational challenges.
Analysts have lowered price targets, citing challenges in growth and operational performance.
The stock's bearish technical indicators and high implied volatility suggest uncertainty and potential downside risk.
The options data shows a high put-call ratio, indicating bearish sentiment.
In Q3 2026, Workday reported revenue of $2.432 billion, up 12.59% YoY. Net income increased to $252 million, up 30.57% YoY, with EPS rising to 1.11 (up 29.07%). Gross margin improved slightly to 75.7%. These figures indicate solid financial growth but are overshadowed by concerns about operational challenges and near-term growth.
Analysts have mixed views on WDAY. While some maintain a Buy rating, others have downgraded the stock or lowered price targets, citing concerns about growth and operational challenges. The average price target has been reduced significantly, reflecting cautious sentiment.
