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 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">Shares of Workday fell over 9% at the market open on Thursday after the company <a aria-label="trimmed its revenue growth guidance (opens in a new tab)" href="https://www.investors.com/news/technology/wday-stock-workday-plunges-new-management-lowers-revenue-outlook/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">trimmed its revenue growth guidance</a> through fiscal 2027 from 20% to 17-19% range. However, some analysts remain bullish on the stock, with their latest price targets still implying significant upside potential.&nbsp;</p> 
<h3 id="workday-cuts-subscription-revenue-growth-outlook-for-next-3-years">Workday Cuts Subscription Revenue Growth Outlook For Next 3 Years</h3> 
<p>Enterprise software maker Workday nosedived more than 9% on Thursday after the company cut its subscription revenue growth outlook through fiscal 2027. Shares were trading at $210.99 at the time of writing.</p> 
<p>The drop comes a day after Workday told analysts it expects subscription revenue growth to be from 17% to 19% in the following three fiscal years, down from its previous guidance of 20%. The company’s fiscal 2024 year ends with the January quarter.</p> 
<blockquote class="wp-block-quote"> 
 <p>“The take-down on growth and margin expansion is disappointing, but we think new management is making the right strategic moves and that targets will prove conservative.”</p> <cite>– TD Cowen analyst Derrick Wood told clients in a note.</cite>
</blockquote> 
<p>The software vendor also announced several new generative artificial intelligence (AI) products, <a aria-label="including an AI marketplace (opens in a new tab)" href="https://seekingalpha.com/pr/19478207-workday-announces-ai-marketplace-to-help-customers-easily-discover-and-deploy-industry?hasComeFromMpArticle=false" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">including an AI marketplace</a>, developed to help customers find and deploy AI and machine learning (ML) solutions to boost their businesses.&nbsp;</p> 
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<h3 id="piper-sandler-cuts-price-target-on-workday-stock-but-upside-is-still-there">Piper Sandler Cuts Price Target on Workday Stock, But Upside Is Still There</h3> 
<p>Meanwhile, equity analysts at Piper Sandler <a href="https://www.marketbeat.com/instant-alerts/nasdaq-wday-a-buy-or-sell-right-now-2023-09-28/" target="_blank" aria-label="reduced their price target (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">reduced their price target</a> on Workday stock from $288 to $275 on Thursday. Still, the new price objective implies a notable upside of around 30% compared to its current trading price. In addition, the analysts maintained their Overweight recommendation on WDAY shares.</p> 
<p>The analysts’ move suggests that Workday’s most recent share price drop may be a market overreaction, given the company’s robust year-to-date performance and growing efforts to capitalize on the ongoing <a href="https://tokenist.com/ai-can-boost-net-margins-for-companies-by-4-over-a-decade-report/" rel="dofollow" class="deco-link">AI boom</a>.</p> 
<blockquote class="wp-block-quote"> 
 <p>“We believe management’s 25% margin guide is a floor, giving them room to invest in artificial intelligence, financial, and international growth while allowing new CFO Zane Rowe to adjust to WDAY.”</p> <cite>– Jefferies’ analyst Brent Thill wrote in his note.</cite>
</blockquote> 
<p>Workday’s shares surged by over 25% year-to-date, outperforming the benchmark S&amp;P 500 index, which gained around 12%. However, the index’s gains are <a href="https://tokenist.com/most-of-sp-500s-gains-driven-by-7-firms-others-up-less-than-5-ytd/" rel="dofollow" class="deco-link">largely driven by ‘The Magnificent Seven’ companies</a>, which continue to <a href="https://tokenist.com/how-the-ai-boom-could-be-nvidias-iphone-moment/" rel="dofollow" class="deco-link">thrive on the 2023 AI craze</a>.</p> 
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<p><em><strong>Do you think Workday’s stock price decline on Thursday is a short-term blip or an indicator for broader risks? Let us know in the comment below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/workday-dips-over-9-as-revenue-growth-forecasts-trimmed/">Workday Dips Over 9% as Revenue Growth Forecasts Trimmed</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Workday Dips Over 9% as Revenue Growth Forecasts Trimmed

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