With significant hedge fund interest and growth potential, Workday, Inc. (NASDAQ:WDAY) secures a spot on our list of Top 15 AI Stocks to Watch in December 2025.
On December 2, 2025, Workday, Inc. (NASDAQ:WDAY) saw Robert Simmons of Rosenblatt Securities reiterate his “Hold” rating with a $235 price target. Reflecting mixed signals in the company’s growth trajectory, it pointed to its Core HCM segment, which is expanding at a slower pace due to market saturation and intensifying competition, despite remaining Workday’s biggest revenue driver. Although the financial management portfolio and international operations are seeing rapid growth, the analyst believes they have yet to significantly improve the company’s overall growth profile.
At the same time, Simmons highlighted cross-selling and upselling efforts, which continue to contribute greatly to bookings. He believes margins are expected to rise, further supporting his price target. However, the analyst noted that Workday, Inc. (NASDAQ:WDAY) remains more expensive than its peers in terms of revenue multiples, justifying his “Hold” rating while awaiting a more compelling entry point.
A week earlier, on November 25, Workday, Inc. (NASDAQ:WDAY) reported its fiscal third quarter 2026 results. The quarter saw 12.6% revenue growth, driven by 14.6% growth in subscription revenue, along with improved operating margins and stronger cash flows. Thanks to new customers, expanded business relationships, and contributions from recent acquisitions like Paradox, the subscription revenue portfolio posted double-digit growth. While the quarter also featured multiple AI-focused product launches and partnerships that bolstered the company’s innovation pipeline, the analyst’s near-term growth concerns remain unchanged.
Workday, Inc. (NASDAQ:WDAY) offers an enterprise AI platform that manages people, money, and agents.
While we recognize WDAY’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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