What's Going On With Workday Shares?

Workday Inc WDAY shares fell late Monday after the company reported fourth-quarter results. The stock is bouncing back Tuesday morning in the wake of positive analyst updates from several firms.

• Q4 Revenue: $1.65 billion beat estimate of $1.63 billion
• Q4 EPS: $0.99 beat estimates of $0.91

Workday said it has a 24-month subscription revenue backlog of $9.68 billion, up 21.3% year-over-year. 

"Despite the unpredictable environment, we remain well-positioned to drive the future of work for our more than 10,000 customers thanks to our amazing employees and unique approach to embedding artificial intelligence and machine learning into the very core of our platform," said Aneel Bhusri, co-founder, chair and co-CEO of Workday.

In fiscal 2024, Workday said it plans to "double down" on strategic growth areas by investing in its customer base, focusing on key industries, evolving and investing in its partner ecosystem and focusing on innovation. The company noted that it expects the environment to "remain uncertain in the near-term."

Workday maintained its fiscal 2024 subscription revenue guidance of $6.525 billion to $6.575 billion and increased its operating margin outlook to 23%.

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Analyst Assessment: Several analysts adjusted price targets on the stock following the company's quarterly results.

• Piper Sandler analyst Brent Bracelin maintained Workday with an Overweight and raised the price target from $184 to $215.
• Barclays analyst Raimo Lenschow maintained Workday with an Overweight and lowered the price target from $220 to $216.
• Baird analyst Mark Marcon maintained Workday with an Outperform and lowered the price target from $223 to $220.
• Mizuho analyst Siti Panigrahi maintained Workday with a Buy and raised the price target from $200 to $225.
• Morgan Stanley analyst Keith Weiss maintained Workday with an Overweight and raised the price target from $220 to $230.
• Canaccord Genuity analyst David Hynes maintained Workday with a Buy and raised the price target from $200 to $210.

WDAY Price Action: Workday has traded in a 52-week range of $128.72-$250.

The stock initially traded down to $178 after hours before bouncing back Tuesday morning. It was down 1.2% at $182.71 at time of publication, according to Benzinga Pro.

Photo: courtesy of Workday.