Workday (NASDAQ:WDAY) shares rose more than 8% in pre-market Wednesday trading after the company reported Q3 results.

EPS of $1.53 came in better than the consensus estimate of $1.41. Revenue grew 16.7% year-over-year to $1.87 billion, beating the consensus estimate of $1.85B.

Subscription revenues rose 18.1% year-over-year to $1.69 billion. The total subscription revenue backlog was $18.45 billion, representing a 30.9% year-over-year growth.

“Following our continued momentum in the third quarter, we are raising our fiscal 2024 subscription revenue guidance to $6.598 billion, representing 19% year-over-year growth. We are also raising our fiscal 2024 non-GAAP operating margin guidance to 23.8%. Our focus is centered on investing to drive durable long-term growth while expanding margins,” said CFO Zane Rowe.

The company raised its full-year subscription-revenue guidance to $6.598 billion, up from the prior range of $6.57 billion to $6.59 billion.

Analysts at Bernstein raised the price target by $15 to $299 per share.

“We have written that the software/cloud companies that will hold up best will have certain attributes: enterprise focus, critical/sticky solutions, strong or improving margins. When you add in a large TAM, that can support growth and lots of opportunities to cross-sell/ up-sell you get Workday,” the analysts said in a note.

Analysts at BofA hiked the target by $30 to $300 per share.

“We are impressed by the solid balance of growth and margin upside in a quarter where macro pressure sustained,” the analysts said.

Additional reporting by Senad Karaahmetovic