Financial and human capital management software vendor, Workday (NASDAQ: WDAY) slid in pre-market trading on Thursday after the company lowered its outlook. The company stated on its Financial Analyst Day that it was lowering its target for growth in annual subscription revenues in the range of 17% to 19% in FY27 from its prior target of more than 20% growth.
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The company expects an adjusted operating margin of 25% and has forecasted an operating cash flow margin of around 30% in FY27.
Is Workday a Buy or Sell?
Analysts are cautiously optimistic about WDAY stock with a Moderate Buy consensus rating based on 23 Buys, six Holds, and one Sell.