Workday, Inc. (NASDAQ: WDAY) received a price target reduction from KeyBanc analyst Jason Celino to $285.00. Despite strong Q2 results, uncertainty in growth trajectory led to the adjustment. The company raised its subscription revenue guidance for fiscal year 2026 by $15 million, mainly attributed to the Paradox acquisition.

The firm noted that the increase in subscription revenue guidance was not solely from organic growth but also from the Paradox acquisition. Workday’s focus on profitability is highlighted as it raises its operating margin and operating cash flow guidance. Analysts remain Overweight on the stock despite the price target reduction.

Workday, Inc. (NASDAQ: WDAY) is a provider of enterprise cloud applications. While the company shows potential as an investment, some AI stocks may offer better upside potential with less downside risk. Investors seeking undervalued AI stocks can explore opportunities in the market.

For more insights on AI stocks, check out “10 Must-Watch AI Stocks for Investors” and “10 AI Stocks Analysts Are Tracking Closely.” No disclosures were provided in the article.

Read more at Yahoo Finance: Workday (WDAY) Sees Strong Q2 Results but Analyst Cuts Target to $285