Workday, Inc. (NASDAQ:WDAY) is considered one of the best tech stocks for long-term investment by Needham, with a Buy rating and $300 price target. Despite an expected reduction in fiscal year 2027 subscription revenue growth from 15% to 13%, the research firm remains optimistic about the company’s future.

Needham believes the slowdown in Enterprise Resource Planning (ERP) migrations will contribute to Workday’s lower growth rate. However, they anticipate the company will raise its operating margin target from 30% while focusing on integrating artificial intelligence and forming strategic partnerships for growth.

As a technology company, Workday offers cloud-based software for businesses to manage finance, human resources, planning, and payroll functions. While it presents investment potential, some AI stocks may offer greater upside with lower risk, especially in the current economic climate.

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Read more at Yahoo Finance: Needham Affirms Workday Inc. (WDAY) ‘Buy’ Rating on Growth Bounce Back