Workday (NASDAQ:WDAY) opened its fiscal year on a high note, reporting a Q1 EPS of $2.23, exceeding the consensus of $2.01, and a revenue of $2.24 billion, which topped the expected $2.22 billion. The stock closed at $272.38, showing a rise of 6.2% over three months and 4.4% year-to-date.

Pattern of Earnings Outperformance

This EPS breakthrough continues Workday’s trend of surprises, exceeding estimates by an average of 8% across the last eight quarters according to Entreprenerdly’s Historical Earnings API. This consistent pattern builds investor confidence during market fluctuations.

Revenue Growth and Market Valuation

Workday’s subscription model delivered a 14% year-on-year revenue increase, with the stock trading at approximately 25 times trailing twelve-month revenue, higher than the peer median of 20 times, reflecting a premium valuation for its resilient cloud-ERP growth.

With 23 upward EPS revisions in the last 90 days showcasing analyst optimism, all eyes are now on management’s Q2 guidance and customer subscription metrics in the upcoming earnings call.