Key Points
Workday, Inc. (WDAY) closed lower, moving from a previous close of $233.69 to a current price of $215.56. The stock finished the session down 7.76%, declining $18.13 as sellers pressed their advantage following fresh fundamental developments. The move reset near-term pricing and shifted momentum to the downside, with investors reassessing risk-reward conditions at a lower level.
Trading occurred on above-average volume as the share price extended away from recent consolidation areas. WDAY now sits 27% below its 52-week high of $294.00 set on 12/09/2024, underscoring how far sentiment has faded from prior peaks. Technically, the stock sliced through short-term support in the low $220s and is probing the $210–$215 zone, where buyers previously showed interest. Resistance is now likely near the gap area around $223–$225, with $200 representing a round-number level that traders often monitor for potential support.
In recent sessions, the tape has been choppy for enterprise software names, and Workday’s move reflects that broader pattern alongside company-specific catalysts. Within Information Technology, leadership remains concentrated in select mega-cap peers, leaving many Software and Services names sensitive to valuation resets and company guidance on recurring revenue trajectories. The latest downside break places emphasis on follow-through action in coming days, as market participants weigh sector flows, earnings reactions across cloud software, and whether WDAY can stabilize above potential support to rebuild a constructive base.
Why Workday, Inc. Price is Moving
At $215.56 per share, Workday, Inc. carries a market capitalization of $62.40 billion, anchored by trailing twelve-month EPS of $2.15. The stock is trading well below its 52-week high of $294.00, reflecting a meaningful retracement from late-2024 levels. The current setup highlights a premium-valued enterprise software leader recalibrating after a notable swing in investor expectations toward growth durability and recurring revenue visibility.
The immediate catalyst for the decline was Workday’s third-quarter earnings release and the subsequent market reaction on Nov. 26, 2025. While overall quarterly results surpassed expectations, subscription revenue—an especially critical metric for SaaS companies—fell short of analyst forecasts. That miss drew attention because subscription revenue drives recurring cash flows, renewal dynamics, and the valuation multiples investors are willing to pay for cloud software businesses. Compounding sentiment pressure, Wells Fargo’s Michael Turrin reduced his price target from $300 to $290 while maintaining an Overweight rating, reinforcing a narrative of slightly lower growth assumptions. Even with some third-party fair value estimates implying upside from current levels, the market prioritized the concrete subscription revenue shortfall, leading to swift multiple compression.
From a valuation standpoint, Workday’s premium profile means it is more sensitive to any perceived deceleration in recurring revenue. The combination of a high earnings multiple and a miss on the line item most tied to long-term visibility triggered repositioning by fast-money traders and long-only managers alike. In the broader Software and Services cohort, investors continue to differentiate companies on the quality and consistency of subscription growth, magnifying the impact of any variance versus expectations on near-term price action.
What is the Workday, Inc. Rating - Should I Sell or Buy?
Weiss Ratings assigns WDAY a C rating. Current recommendation is Hold.
The rating is built on five indices: the Excellent Growth Index aligns with 12.61% revenue growth and supports ongoing expansion; the Good Efficiency Index is consistent with a 6.66% ROE and 6.50% profit margin, indicating respectable but improvable operating quality; the Excellent Solvency Index reflects a solid balance sheet and financial flexibility; the Fair Total Return Index suggests average risk-adjusted performance versus peers and the market; and the Fair Volatility Index indicates typical swings that neither significantly help nor hurt risk-adjusted prospects. Together with a 108.47 P/E ratio, the mix points to a company with identifiable strengths, tempered by valuation and performance balance.
Relative to sector peers, NVDA is rated B, AAPL is rated B, and MSFT is rated B. Each of these large-cap technology names has achieved a stronger balance between reward and risk in recent periods, reflected in better risk-adjusted total return profiles and market leadership that currently outpaces Workday.
A C rating means Workday’s overall risk/reward is roughly in line with the market. Solid growth and strong solvency help the case, but a premium valuation and only fair total returns keep the stock in Hold territory. In the Weiss framework, positive fundamentals are acknowledged, yet they are not sufficient, at this time, to lift the overall assessment above average given recent performance dynamics and the sensitivity of multiples to subscription revenue trends.
About Workday, Inc.
Workday, Inc. is an enterprise software company in the Software and Services industry within the Information Technology sector. Founded in 2005, the company focuses on cloud-based applications designed to help organizations manage core back-office functions. Workday is known for delivering suites that unify finance, workforce, planning, and analytics on a single platform. The company is headquartered in Pleasanton, California, and serves mid-sized to large enterprises across industries including technology, healthcare, education, financial services, retail, and the public sector.
Workday’s product portfolio centers on Workday Human Capital Management for HR, payroll, time tracking, and talent; Workday Financial Management for general ledger, accounting, procurement, and projects; and Workday Adaptive Planning for budgeting, forecasting, and modeling. The platform also includes analytics capabilities such as Workday Prism Analytics, low-code extensibility via Workday Extend, and tools that help customers configure processes and integrate with third-party systems. Workday’s architecture emphasizes a unified data model and in-memory computing, enabling customers to access real-time insights and apply consistent security and governance rules across applications.
The company’s market position reflects a focus on large-scale digital transformation in HR and finance, where modernization cycles are long and mission-critical. Differentiators include a single codebase across applications, user-centric design, strong customer satisfaction, and an ecosystem of partners that extends implementation and integration reach. Workday competes with established enterprise vendors in HR and ERP suites, offering a cloud-native approach that appeals to organizations seeking agility, continuous innovation, and a consolidated platform to reduce complexity and improve operational decision-making.
Investor Outlook
With a Weiss C (Hold) rating, investors should watch whether WDAY stabilizes above the $210–$215 area and how upcoming updates address subscription revenue momentum. Valuation sensitivity remains elevated relative to growth signals, so sector trends in enterprise software and recurring revenue metrics will be key.
See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.