Workday (WDAY, Financial) gained momentum on Wednesday, with shares rising 10.24% (+$26.14) to $281.36 in pre-market trading as of 08:21 AM ET, following its latest earnings report and guidance that eased concerns over slowing growth.
The back-office software provider reported stronger-than-expected Q4 results, with current remaining performance obligations (RPO) growth of 15.2%, beating estimates of 14.3%. Workday also provided better-than-expected Q1 RPO growth guidance of 14.5-15.5%, surpassing Wall Street's 13.9% estimate.
KeyBanc analyst Jason Celino raised his price target to $335 from $305, citing confidence in Workday's path to 30%+ operating margins by FY27. Mizuho's Siti Panigrahi reiterated an Outperform rating with a $320 price target, believing Workday remains well-positioned for long-term back-office leadership.
However, Needham's Scott Berg noted that while Q4 results were solid, they may not shift short-term concerns about slowing demand, maintaining a Buy rating and a $300 price target.
Other enterprise software stocks, including Salesforce (CRM, Financial), SAP (SAP, Financial), and Microsoft (MSFT, Financial), also saw gains in early trading as investor sentiment improved.
