Workday Shares Surge 17 percent Following Better Than Expected Q3 Results

Workday (NASDAQ:WDAY) shares soared more than 17% yesterday following the company’s reported Q3 results, with EPS of $0.99 coming in better than the Street estimate of $0.84. Revenue was $1.6 billion, compared to the Street estimate of $1.58 billion.
According to the analysts at Oppenheimer, the results support the business resiliency and consistently good execution in a tough macro environment. The Q3 results and above consensus 2024 operating margin outlook lend good support to durable growth with improving margin and cash flow acceleration story.
The company raised its 2023 subscription revenue guidance to a range of $5.555-$5.557 billion, as well as raised its 2023 non-GAAP operating margin guidance to 19.2%.
The company’s Board of Directors also authorized a new $500 million share repurchase program of its Class A common stock.