How did WDAY's Q4 2025 EPS surprise impact investor confidence?

Workday's (WDAY) Q4 2025 EPS surprise had a positive impact on investor confidence, as evidenced by several key indicators:

1. **Earnings Call Reaction**: Following the earnings release, Workday's stock price surged by 10.49% in aftermarket trading, reflecting investor optimism about the company's performance.
2. **Analyst Ratings and Price Targets**: Morgan Stanley maintained its Overweight rating on Workday, setting a price target of $330, which suggests confidence in the company's future prospects despite the EPS miss.
3. **Revenue Growth Focus**: The focus on Workday's solid revenue growth and subscription revenue highlights, along with strong gross revenue retention rates, indicates that investors are impressed by the company's ability to generate income.
4. **Market Position and Growth Prospects**: Workday's strong market position, particularly in the U.S., and its ability to maintain momentum in key international markets, such as the UK and Germany, contribute to investor confidence in the company's future growth.

Overall, while the EPS miss may have raised some concerns, the company's strong revenue growth, operational performance, and strategic initiatives, such as workforce reductions, have likely bolstered investor confidence in Workday's long-term prospects.