Shares of Workday (NASDAQ: WDAY) gained over 5% in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $0.99, which beat analysts’ consensus estimate of $0.84 per share.
Sales increased by 20.3% year-over-year, with revenue hitting $1.6 billion. This beat analysts’ expectations of $1.586 billion.
Looking forward, management raised the low end of its Fiscal Year 2023 subscription revenue guidance to a range of $5.555 billion to $5.557 billion. In addition, it raised its Fiscal Year 2023 non-GAAP operating margin guidance to 19.2%.
Additionally, Workday is now able to repurchase up to $500 million worth of its own shares through its new buyback program.
Overall, Wall Street has a consensus price target of $202.60 on WDAY stock, implying 41.37% upside potential, as indicated by the graphic above.