Citigroup downgraded Workday Inc. (WDAY) from Buy to Neutral on May 15, 2026. The company's shares have declined more than 40% year-to-date.
Analysts identified an existential threat from the AI complex to traditional software-as-a-service business models. Citigroup did not provide a specific price target with the rating change.
While some analysts remain bullish on Workday’s AI monetization through partnerships, Citigroup’s move highlights growing market uncertainty. The downgrade reflects concerns over the disruptive potential of artificial intelligence on the company's core offerings.