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    How AI-driven Sana Deal and New Guidance At Workday (WDAY) Has Changed Its Investment Story

    Simply Wall St·12/21/2025 15:14:13
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    • Recently, BTIG began covering Workday, Inc. and the company closed its US$1.10 billion acquisition of AI-driven learning software firm Sana, while guiding for 14.4% subscription revenue growth for the fiscal year ending January 2026, including contributions from Sana and a US Defense Intelligence Agency contract.
    • Taken together, the new AI-focused acquisition and upgraded revenue outlook underscore Workday’s effort to deepen its AI capabilities and expand its enterprise footprint.
    • Next, we’ll examine how the Sana acquisition and AI emphasis may influence Workday’s existing investment narrative and long-term appeal.

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    Workday Investment Narrative Recap

    To own Workday, you generally need to believe in steady demand for cloud HR and finance software and the company’s ability to layer AI on top of that base. The Sana acquisition and higher subscription revenue guidance appear supportive of the current AI-led growth story, while near term, the biggest swing factor still looks to be how effectively Workday converts that AI interest into larger, stickier contracts amid rising competition.

    Among recent developments, the US$1.10 billion Sana acquisition is most directly tied to this AI emphasis, folding learning and upskilling into Workday’s existing HCM platform. If Workday can integrate Sana smoothly and keep customers adopting these newer AI products, it could reinforce the company’s position in enterprise AI at a time when newer, AI native software providers are working to undercut incumbents.

    Yet, despite the optimism around AI, investors should be aware that rising AI native HCM competitors could still pressure Workday’s pricing power and...

    Read the full narrative on Workday (it's free!)

    Workday’s narrative projects $12.9 billion revenue and $1.8 billion earnings by 2028.

    Uncover how Workday's forecasts yield a $275.64 fair value, a 26% upside to its current price.

    Exploring Other Perspectives

    WDAY 1-Year Stock Price Chart
    WDAY 1-Year Stock Price Chart

    Thirteen fair value estimates from the Simply Wall St Community span roughly US$233 to US$347, showing how far apart individual views on Workday can be. Against this backdrop, Workday’s push into AI driven learning via Sana highlights both the company’s growth ambitions and the competitive risks that could shape how those valuations play out, so it is worth weighing several of these perspectives side by side.

    Explore 13 other fair value estimates on Workday - why the stock might be worth as much as 59% more than the current price!

    Build Your Own Workday Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.