TD (TSX:TD) Cowen has maintained its positive stance on Workday (NASDAQ: NASDAQ:WDAY), reiterating a Buy rating and a $290.00 price target for the stock.
The endorsement follows the company's analyst day, held during the Workday Rising conference in Las Vegas, where management provided updates on financial guidance and strategic initiatives.
According to the firm, Workday's management has increased its outlook for operating cash flow (OCF) and free cash flow (FCF) for fiscal year 2027.
This update is in line with the 5% operating margin increase that was announced in the second quarter earnings report. Analysts had largely anticipated these revisions to the financial guidance.
TD Cowen also highlighted Workday's ongoing efforts to expand through new partnerships and vertical markets. Conversations with industry participants have confirmed the progress in these areas, suggesting a positive trend in Workday's business development activities.
In addition to business and financial updates, Workday made several announcements related to artificial intelligence (AI) during the conference. However, the firm noted that there were no new direct monetization strategies related to these AI advancements at the moment.
In other recent news, Workday has reported a 17% increase in subscription revenue, reaching $1.903 billion. The company has adjusted its revenue growth forecast to 15% and set ambitious financial goals for FY27, including a 34% operating cash flow margin and a 30% free cash flow margin.
Deutsche Bank (ETR:DBKGn), Needham, Piper Sandler, and CapitalOne have maintained their respective ratings on Workday while adjusting their price targets. Workday also announced its intention to acquire Evisort, an AI document intelligence platform, and unveiled four new artificial intelligence agents, Recruiter, Expenses, Succession, and Workday Optimize, designed to enhance processes in human resources and finance.
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