12:37 PM EDT, 09/17/2025 (MT Newswires) -- Workday (WDAY) should be able to meet its medium-term growth targets disclosed on Tuesday, RBC Capital Markets said, expressing confidence in the cloud human resources company's competitive position.

Workday is targeting a 13% to 14% compound annual growth rate in subscription revenue through fiscal 2028 at the mid-point of the range, as well as a 35% non-GAAP operating margin.

These targets are achievable, RBC analyst Rishi Jaluria wrote in a note emailed Wednesday. The brokerage said it received positive feedback from several Workday's global partners it spoke with at the company's annual Rising customer conference.

"Overall, we came away confident core growth drivers are intact, and view (artificial Intelligence) as an under-appreciated aspect of the story," Jaluria wrote.

Workday's partners said the company is well positioned versus rivals like Oracle (ORCL) and SAP (SAP), according to Jaluria.

Workday's shares were up 7.8% in Wednesday trade, though the stock is down 8.5% year to date.

Workday said on Tuesday that it agreed to acquire Sweden-based AI company Sana Labs for about $1.1 billion. The transaction is expected to complete in the fourth quarter of Workday's fiscal 2026.

Sana's AI tools -- Sana Learn and Sana Agents -- have served more than 1 million users across hundreds of enterprises.

Separately, Workday and Microsoft ( MSFT ) on Tuesday announced a collaboration to help companies securely manage their people and AI agents across platforms.

Activist investor Elliott Investment Management said late Tuesday that Workday has made "substantial progress" in recent years. It seemed to endorse the company's multi-year plan, saying it would drive "substantial long-term value creation for Workday shareholders."

Elliott said it holds a more than $2 billion stake in Workday.

In a regulatory filing on Wednesday, Workday said its board authorized the repurchase of up to $4 billion of additional shares. It plans to buy back about $5 billion of shares through fiscal 2027.

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