Is Workday Inc. (NASDAQ:WDAY) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Workday Inc. at current levels.
Forward P/E of 9.3 on a 75% gross margin SaaS leader with $3.1B FCF. The market is mispricing AI-era HR software.
Where WDAY is headed
Workday sits at $118 with a forward P/E of 9.3 and $3.1B of free cash flow on a $29B market cap. That is a 10.6% FCF yield on a business growing revenue 13.5% with 75.8% gross margins. Something has to give. Either the multiple is wrong or the cash flow projections are. Our read is the former, and the catalyst is closer than the tape suggests.
Read the full Compass Direction on WDAY
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $135.34).
See the full WDAY analysisGet calls like this, free
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Frequently asked questions
Is Workday Inc. (NASDAQ:WDAY) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Workday Inc. at current levels. Forward P/E of 9.3 on a 75% gross margin SaaS leader with $3.1B FCF. The market is mispricing AI-era HR software.
What is WDAY's Compass Score?
Workday Inc. scores 72/100 on Alexandria's Compass, placing it in the "Favorable" tier. Scores blend eight factors and update weekly.
What is the price target for WDAY?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the WDAY page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.