1. Workday forecasts $15 free cash flow per share by fiscal 2028. 2. Goldman Sachs analyst maintains Buy rating with a $280 price target. 3. Workday's AI initiatives contributed over $150 million in recurring revenue. 4. Operating margins set to reach 35% by fiscal 2028, up from previous targets. 5. Reset subscription revenue guidance down to 13%–14% CAGR through fiscal 2028.
The positive adjustments in margins and free cash flow are likely to boost investor confidence, similar to historic market responses following favorable earnings reports for SaaS companies like Adobe.
The article discusses significant growth projections and a positive market rating, directly influencing WDAY’s future performance and strategic positioning in the SaaS sector.
Given the long-term nature of the guidance provided (through fiscal 2028), investors are expected to respond positively over time as results align with projections.