11 Best Innovative Stocks to Buy According to Analysts

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9. Workday, Inc. (NASDAQ:WDAY)

Average analysts’ upside: 31.02%

Number of Hedge Fund Holders: 89

Workday Inc. (NASDAQ:WDAY) makes cloud-based software that helps companies manage their people and money in one easy-to-use system. Over 10,000 organizations use WDAY software to handle things like payroll, hiring, budgeting, and planning, and all of this is possible from a single platform that offers real-time updates. The company is constantly innovating its SaaS products, with the most recent features including built-in AI to help businesses make their operations more efficient, make better and faster decisions, and improve the employee experience. WDAY ranked eighth on our recent list of 10 Best SaaS Stocks to Buy According to Billionaires.

Workday Inc. (NASDAQ:WDAY) delivered a solid performance in the recent Q4 2024 with 16% subscription revenue growth. The company now serves more than 11,000 customers across industries and geographies, including more than 60% of the Fortune 500. FY25 subscription revenue reached $7.718 billion, representing 17% growth, while total revenue was $8.45 billion, up 16%. The company demonstrated strong momentum in AI adoption, with 30% of customer expansions involving one or more AI SKUs, including Extend Pro, Recruiting Agent, Evisort, and Talent Mobility Agent.

Looking ahead, Workday Inc. (NASDAQ:WDAY) is strategically positioning itself through significant AI investments and innovations, notably launching the Agent System of Record, a centralized system to manage all organization’s AI agents. The company expects FY26 subscription revenue of approximately $8.8 billion, representing 14% growth. Despite implementing a restructuring that will reduce the workforce by approximately 8%, WDAY plans to have a higher headcount next year than before the restructuring, indicating continued investment in growth areas. The company is particularly focused on expanding internationally, strengthening its AI capabilities, and leveraging its partner ecosystem. WDAY’s success in innovating and monetizing AI capabilities secured its place on our list of best innovative stocks.

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