Workday, Inc. (WDAY) beat Wall Street's expectations after Tuesday's closing bell, but that didn't stop a couple of analysts from taking out the red pen on their price targets.

The enterprise software company reported quarterly earnings of $2.32 per share, topping the analyst estimate of $2.18. Quarterly revenue came in at $2.43 billion, edging past the Street estimate of $2.42 billion.

"Workday delivered another solid quarter, fueled by the strength and diversity of our business and the momentum we're seeing across our AI portfolio," said Carl Eschenbach, CEO of Workday. "By unifying people, money, and AI agents on one trusted platform, we're giving customers a real edge — helping them empower their people, simplify how work gets done, and drive results that truly matter."

Shares gained 3.1% to close at $233.69 on Tuesday, but the analyst reaction told a more cautious story.

Analyst Moves

Following the earnings announcement, two analysts adjusted their outlooks on Workday:

• Bernstein analyst Mark Moerdler maintained an Outperform rating but lowered his price target from $304 to $298.
• Keybanc analyst Jason Celino kept an Overweight rating while cutting his price target from $285 to $260.

Both analysts remain bullish on the stock despite trimming their targets, suggesting the beat may have come with some underlying concerns about future growth or valuation.