Jim Cramer Dumps Workday, Calls It 'An Old Favorite, But Not Anymore'

Jim Cramer has officially removed Workday (WDAY) from his list of top stock picks, labeling the HR tech giant an 'old favorite, but not anymore.' Speaking during a live broadcast, Cramer cited a shift in investor sentiment and a lack of innovation momentum despite the company’s strong historical performance. He highlighted that Workday’s latest quarterly revenue growth slowed to 9%, down from 15% in the same period last year. The company reported $1.24 billion in revenue for Q4 2025, slightly below analysts’ expectations of $1.27 billion, with subscription revenue rising 10% year-over-year. Despite a net income of $287 million, non-GAAP earnings per share fell short by $0.03, contributing to investor skepticism. Cramer noted that Workday's cloud-based HCM platform is facing intensified competition from Salesforce (CRM), Oracle (ORCL), and SAP (SAP), all of which are expanding their workforce management offerings. The stock closed at $218.45 on March 3, 2026, marking a 12% decline from its January high of $248.60. Analysts have issued mixed ratings: 18 out of 32 maintain 'buy' or 'outperform' ratings, while 14 recommend 'hold' or 'sell.' Cramer’s comments are likely to amplify existing concerns, particularly among retail investors who have long viewed WDAY as a core holding in their technology portfolios. Market watchers suggest that Workday’s upcoming fiscal year guidance, expected on April 28, 2026, will be critical. A projected revenue growth rate below 10% could trigger further downgrades and capital reallocation from growth-focused funds.