Will Workday’s (WDAY) C$1 Billion Canada AI Push Redefine Its Global Expansion Narrative?

• In recent days, Workday announced plans to invest C$1.00 billion over five years to expand its Canadian operations, focusing on AI, engineering, product innovation, and strengthened local customer support.
• This move, combined with Workday’s emphasis on AI as a growth tailwind and deepening partner ecosystem, highlights how the company is tying geographic expansion directly to AI-driven product development and enterprise workflows.
• Against this backdrop, we’ll examine how Workday’s C$1.00 billion Canada investment reshapes its investment narrative around AI-enabled global expansion.

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What Is Workday’s Investment Narrative?

To own Workday, you really have to buy into its push to become an AI-first “system of action” across HR and finance, supported by double‑digit forecast revenue and earnings growth despite a rich valuation multiple and currently low returns on equity. The new C$1.00 billion Canada commitment, along with AI-focused integrations like HireVue and Joveo, fits that story as Workday deepens its data, partner and workflow advantages rather than changing the core thesis outright. In the short term, the main catalysts still look like execution on usage-based AI products, subscription growth versus guidance, and whether buybacks are used more actively after a 1‑year share price decline. The key risks remain similar, but this spending round modestly raises the bar on achieving profitable AI monetization and justifying premium pricing.

However, one risk in particular stands out that investors should not ignore.

Workday’s shares have been on the rise but are still potentially undervalued by 46%. Find out what it’s worth.

Exploring Other Perspectives

Thirteen Simply Wall St Community fair value estimates for Workday span about US$230 to US$347 per share, reflecting very different expectations. Set that against the company’s high earnings multiple and execution risk around large new AI investments, and you can see why it pays to compare several viewpoints before forming a view on its long term performance.

Explore 13 other fair value estimates on Workday – why the stock might be worth as much as 83% more than the current price!

Build Your Own Workday Narrative

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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.

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