Stifel this week cut its price target on Workiva Inc. (NYSE:WK) to $79 from $98 while retaining a Buy rating, reacting to the software company's fourth-quarter results and the fiscal 2026 outlook. The broker's adjustment comes alongside a mix of analyst moves and investor reactions as Workiva released results and guidance.
Shares of Workiva climbed roughly 10% in after-hours trading following the earnings release, reaching $62.43, though the stock remains lower on the year - down about 31.5% over the trailing 12 months.
Guidance and profitability
For fiscal 2026, Workiva forecast subscription and support revenue growth of 19%, above the market consensus of about 17%. Management attributed that guidance to continued core go-to-market momentum and a modest pickup in capital markets activity.
The company also set operating margin guidance for fiscal 2026 between 15% and 15.5%, exceeding the street expectation near 13%. Management pointed to sustained organizational efficiencies and improved sales and marketing productivity as drivers of the stronger profitability outlook.
Workiva reported a gross profit margin of 77.5%, per InvestingPro data, and noted that 10 analysts have revised their earnings estimates higher for the coming period.
Recent quarter and cash generation
Workiva closed out the fourth quarter of 2025 with subscription revenue up 21% year-over-year. The company also posted an operating margin expansion of 1,170 basis points in the quarter, and a free cash flow margin that reached 21%.
In addition to operational results, the firm increased its share buyback authorization, a move highlighted by analysts as supportive of shareholder returns.
Valuation and analyst reactions
Stifel noted the stock is trading at about 15 times enterprise value to free cash flow. InvestingPro's analysis indicated the shares may be undervalued and that the analyst consensus remains a Strong Buy.
Other broker actions followed the report. Truist Securities adjusted its price target to $90 from $110 while keeping a Buy rating, citing sector valuations. In a separate mention, Truist also reiterated a Buy stance and an original $110 price target, observing that Workiva's performance was slightly better than the broader software sector's decline. BMO Capital lowered its target to $83 from $92 and retained an Outperform rating, noting that Workiva's fiscal 2026 revenue guidance exceeded its own estimates.
Corporate governance
Workiva also announced additions to its board, appointing two independent directors: Scott Herren, formerly of Cisco, and Mark Peek, formerly of Workday. The company described both as seasoned executives.
Market context
These company-specific developments unfolded amid a broader tech selloff, with Workiva's shares down 19% year-to-date. The mix of stronger-than-expected guidance and margin improvement, offset by lowered analyst targets and sector valuation concerns, has produced a nuanced market response.
Investors looking for deeper analysis and model-driven valuation tools can find dedicated research products that cover Workiva among a broad universe of U.S. equities.