Report published August 28, 2026
Workday (WDAY) Research Report: Preliminary FY28 Outlook and AI Monetization by Deutsche Bank
Source and citation context
- Issuer
- Deutsche Bank
- Report date
- August 28, 2026
- Analysis as of
- August 27, 2026
Authors / editors: Brad Zelnick, Bhavin Shah, Nick Giovacchini, Chris Fountain
Finvaulta summarizes Deutsche Bank's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Workday posted solid F2Q results ahead of consensus on revenue and earnings, accompanied by a preliminary FY28 subscription revenue growth guidance of +11%. Deutsche Bank maintains a Hold rating and a $220 price target, viewing the outlook as balancing prudent FY27 backlog guidance.
Key Takeaways
- 1.Workday delivered solid F2Q results beating top and bottom lines, and provided a preliminary FY28 subscription revenue growth outlook of +11% that helps alleviate deceleration concerns.
- 2.Non-GAAP operating margin guidance for FY27 was raised by 50 bps to 31.0%, reflecting disciplined spending with potential for further upside against easier 2H compares.
- 3.AI metrics showed positive momentum with quarterly new AI ACV over $100mn (>25% of new ACV) and total AI ACV rising 20% q/q to $600mn, though overall AI monetisation remains early.
Table of Contents
- Helpful preliminary FY28 outlook, still early days on AI
- Figure 1: 2Q Results
- Figure 2: Estimate Changes
- Estimate changes, Valuation and Risks
- Appendix 1
- Important Disclosures
- Analyst Certification
- Historical recommendations and target price: Workday (WDAY.OQ)
- Company rating dispersion and banking relationships
- Company Rating and Dispersion Key
- Additional Information
Report data
Figure 1: 2Q Results — as of August 27, 2026.
| Metric | Estimate | Context |
|---|---|---|
| Price Target | 220.00 USD | Deutsche Bank target price based on DCF model |
| Share Price | 193.57 USD | Closing price at 27 Aug 26 |
| 2Q27 Subscription Revenue | 2471 USD mn | Actual subscription revenue beat consensus of $2,455mn |
| 2Q27 Non-GAAP Operating Margin | 31.1% | Beat DBe and Consensus of 30.0% |
| Total AI ACV | 600 USD mn | Total AI annual contract value |
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Authors / Editors
Reported Data Context
- Price Target: 220.00 USD (12-month) · Source: Deutsche Bank Research
- Share Price: 193.57 USD (2026-08-27) · Source: Bloomberg Finance LP
- 2Q27 Subscription Revenue: 2471 USD mn (2Q27) · Source: Company Data
- 2Q27 Non-GAAP Operating Margin: 31.1 % (2Q27) · Source: Company Data
- Total AI ACV: 600 USD mn (2Q27) · Source: Company Data