Thanks for signing up for DividendStocks.com! It's the daily newsletter built for dividend and income investors. Before we can begin sending your daily updates, there’s one quick step left. Please confirm your subscription using the link below so our emails reach your inbox. Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Let’s get your dividend journey started! Discover Top Income-Generating Stocks Here See you in your inbox soon,
The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
This Month's Featured Story Workday, Seriously, It's Time to Buy This SaaS LeaderAuthor: Thomas Hughes. Posted: 2/26/2026. 
Key Points - Workday is on track to hit multiyear lows amid a fear-driven sell-off; its stock oversold to deep value territory.
- AI disruption fears are overblown; this company is growing and cementing itself as an AI automation leader.
- Institutions buy as price action declines, and even analyst trends reveal the value.
- Special Report: [Sponsorship-Ad-6-Format3]
Workday's (NASDAQ: WDAY) stock price decline did not end with its Q4 2025 earnings report; it pushed to long-term lows, creating an attractive opportunity for investors. While the guidance missed consensus and AI-disruption fears persist, the miss was small, guidance remains solid, and disruption may not unfold as the market expects. AI-first companies may try to move into Workday's territory by turning models into full HR and finance software. But incumbents like Workday are embedding AI into their existing platforms. Because they're already deeply integrated into enterprise workflows and data, they may be harder to displace than the market fears. The analyst response to the earnings was unfavorable. Jefferies downgraded the stock to Hold and several firms trimmed price targets, noting the abrupt CEO change: co-founder and Executive Chairman Aneel Bhusri is returning to lead the company through its next phase. Workday Accelerates Growth and Profitability in Q4 2025 Workday posted a solid quarter in Q4, with revenue growth accelerating sequentially to 14.5%. Revenue of $2.53 billion beat MarketBeat's reported consensus by 40 basis points, driven by subscriptions, which rose 15.7% year‑over‑year; the strength carried through to the bottom line. Margins were also impressive. GAAP and adjusted operating margins widened by several hundred basis points. The 420‑basis‑point improvement in adjusted operating margin produced a 32% increase in operating income and a 28% rise in adjusted earnings, results that meaningfully outperformed expectations. Guidance was the sticking point: Q1 and full‑year 2026 revenue forecasts came in below consensus. Still, management expects 13% topline growth in Q1, 12.5% for the year, and robust adjusted operating margins. That may cause short‑term price reset, but it's unlikely to persist. WDAY's consensus target sits roughly 100% above key support levels, and even the low end of analysts' ranges implies upside. 
Institutional Support and Share Buybacks Underpin WDAY Rebound Outlook Two factors that support a potential WDAY rebound are capital returns and strong institutional ownership. Capital returns currently consist entirely of share repurchases, which consistently reduce the share count. 2025 buybacks lowered the share count by roughly 0.4%, a modest but meaningful improvement in shareholder leverage—and institutions appear to be buying into it. Institutional holders now own more than 90% of the stock and have been accumulating for seven consecutive quarters, including the first two months of Q1 2026. Net flows in Q1 2026 were about $1.15 bought for each $1 sold—modest but net positive—and the uptick in buying to offset increased selling suggests institutions will likely continue accumulating despite the "tepid" guidance. Workday's balance sheet shows the effects of buybacks, acquisitions, and growth investments, but raises no obvious red flags. Cash remains healthy and flat year‑over‑year; a drop in current assets is offset by an increase in total assets. Liabilities have risen, compressing equity, but leverage remains light—liabilities are roughly two times cash and under 0.5 times equity—leaving an easy path to reduce debt and bolster equity as 2026 progresses. Catalyst for Workday Stock: Yes, They Exist Catalysts for Workday in 2026 include continued revenue growth, improving cash flow, and the potential to outperform near‑term quarterly guidance. Management called out macro uncertainty and longer deal close timelines, but the more likely outcome is that Workday outperforms quarter to quarter, prompting guidance upgrades and a rebound in analyst and market sentiment. The question is whether the stock will recover from its new lows — and that appears likely. Trading near $115, WDAY sits in territory last seen during the depths of the COVID‑19 market panic.
| 
