09:12 AM EDT, 05/23/2025 (MT Newswires) -- Workday's (WDAY) fiscal Q1 beat and confirmation of its full-year subscription revenue are viewed as a "good outcome" considering the current macroeconomic uncertainty, RBC Capital Markets said in a note Thursday.

The brokerage firm, however, said the company's fiscal 2026 subscription revenue guidance may have disappointed investors expecting an upward revision as shares fell after-hours Thursday and were trading down more than 8% in recent premarket activity Friday.

RBC said it sees the company well-positioned for continued expansion in the back half of fiscal 2026, given cRPO stabilization, operational improvements, growing traction with partners, and adoption of artificial intelligence solutions.

Workday reported cRPO growth of 15.6% during the quarter, exceeding estimates for the second consecutive quarter and indicating stabilization, RBC said, adding that the company raised fiscal 2026 non-GAAP operating margin guidance by 50 basis points, now targeting a 260 bps year-over-year expansion, citing cost discipline and a slowdown in headcount growth.

RBC Capital maintained its outperform rating and price target of $340 on the stock.