Strong Moat, But AI Journey Will Take Time; Downgrade to Underweight

研报英文原文证据摘录

Strong Moat, But AI Journey Will Take Time; Downgrade to Underweight

Idea

July 21, 2026 04:57 AM GMT

Morgan Stanley & Co. LLCMWorkday Inc | North America Adam Wood

Equity Analyst

Strong Moat, But AI Journey Adam.Wood@morganstanley.comChris Quintero +1 212 761-3656

Chris.Quintero@morganstanley.com +1 212 761-1686

Will Take Time; Downgrade to Abhishek S Murli

Research Associate

Abhishek.S.Murli@morganstanley.com +1 212 761-7388

Underweight

Workday Inc (WDAY.O, WDAY US)

What’s Changed Software | United States of America

Workday Inc (WDAY.O) From To Stock Rating Underweight

Rating Equal-weight Underweight Industry View Attractive

Price target $145.00

Price Target $185.00 $145.00

Shr price, close (Jul 17, 2026) $144.78

Mkt cap, curr (mm) $39,262

While WDAY scored high on our Moat framework and there is a 52-Week Range $249.85-110.36

large automation opportunity in the back-office, the Journey to Fiscal Year Ending 12/26 12/27e 12/28e 12/29e

EPS ($)** 9.21 10.37 12.20 14.21

realize AI acceleration will take time. With an uncertain growth Prior EPS ($)** - 9.80 12.24 15.00

& margin path, lack of positive catalysts, and at 23X CY27 GAAP P/EEPS ($)§ 10.7333.6 12.5931.9 14.5822.7 15.3417.2

P/E, we see more downside risk here vs peers. Div yld (%) - - - -

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

Key Takeaways **§ ==ConsensusBased on consensusdata is providedmethodologyby Refinitiv Estimates

e = Morgan Stanley Research estimates

We downgrade Workday to Underweight as AI monetization remains too early to

Quarterly EPS ($)

offset slowing core growth. 2027e 2027e 2028e 2028e

Quarter 2026 Prior Current Prior Current

The retirement of management’s prior growth and margin framework creates Q1 2.24 2.66 2.66 2.90 2.86