Subscription revenue growth grew 17%.
With respect to guidance, Workday is now looking for an adjusted operating margin of 25.25% in the 2025 fiscal year, compared with the 25% forecast it provided in May.
In September 2023, Workday said it was targeting a 25% adjusted operating margin for fiscal year 2027 and subscription revenue growth between 17% and 19%.
Deutsche Bank analysts led by Brad Zelnick increased their 12-month price target on Workday stock to $275 from $265.
"The increased 30% operating margin target was the big upside surprise as it is now committed both sooner and greater than most were expecting," the analysts wrote.
Persons:
Carl Eschenbach, Zane Rowe, Rowe, We're, Brad Zelnick, Piper Sandler, Jerome Powell, Carl Eschenbach didn't, Julie Biel
Organizations:
Deutsche Bank, Citi, Evercore ISI, Computing Fund
Locations:
Davos, Switzerland