An analyst known as @TheValueist posted a bullish thesis on Workday, Inc. on X.com. Workday's share price was $199.55 as of January 13th. According to Yahoo Finance, its trailing P/E ratio was 84.20 and its forward P/E was 18.32.
Workday is a cloud-native enterprise applications provider focusing on human capital management and financial management. The company is expanding its platform to include AI-driven workflow automation, analytics, and agentic execution. It is shifting from a system of record to a system of action, using a unified HR and finance data model, embedded process orchestration, and compliance controls.
This strategy supports upsell opportunities, platform attachment, and usage-based monetization. Workday aims to increase revenue per seat while maintaining strong subscription economics. Its recurring revenue base, high retention rates around 97%, and operating leverage contribute to cash flow growth. New modules and AI offerings help reduce exposure to seat-count fluctuations and labor market volatility.
Workday is pursuing growth through suite expansion with broader finance and frontline workforce capabilities, mid-market penetration via Workday GO, and geographic expansion in Europe and India. Sovereign cloud investments and AI centers of excellence support these efforts. Strategic acquisitions of Sana, Paradox, and Pipedream enhance Workday's ability to deliver agentic enterprise workflows, unify user experiences, and monetize consumption through Flex Credits.
Management incentives are heavily equity-aligned, and capital allocation includes share repurchases. Top leadership has experience from VMware, SAP, and Google Cloud. Risks include leadership transitions, execution cadence without a COO, and competition from Oracle, SAP, and hyperscaler ecosystems. The bullish thesis is supported by durable subscription growth, AI optionality, and platform expansion.
Previously, TechFundies covered a bullish thesis on Workday in October 2024, highlighting HCM and FINS growth, international expansion, and disciplined guidance supporting about 20% free cash flow growth. Workday's stock price has fallen by approximately 18.37% since that coverage due to FINS deceleration and market volatility. @TheValueist shares a similar thesis but emphasizes AI-driven platform expansion and usage-based monetization.
Workday is not on the list of the 30 Most Popular Stocks Among Hedge Funds. According to database information, 64 hedge fund portfolios held Workday at the end of the third quarter, down from 76 in the previous quarter. While Workday has investment potential, certain AI stocks may offer greater upside with less downside risk. A free report is available on the best short-term AI stock, which could benefit from Trump-era tariffs and onshoring trends.