Katherine Eggbert from Piper Jaffray took a victory lap on Neutral-rated Workday (NYSE: WDAY) after the quarter. Despite showing upside in the quarter, management guided below consensus and the stock is indicated down 8% in the premarket. Eggbert had a Neutral rating and a $62 PT on the stock. The announcement of Aon (Fortune #235) as a new Financials customer, $3M in revenue upside, 41% billings growth and margin upside in Q3:FY16 was offset by weak Q4:FY16 guidance and a tepid outlook for FY17.

Workday delivered upside in Q3:FY16, beating the top end of revenue guidance by $3M, and logging subscription growth of 48%, overall revenue growth of 42% y/y, an operating profit and EPS upside. Unearned revenue came in $23M ahead of expectations and Q3:FY16 billings growth of 41% y/y exceeded prior guidance, our estimate of 30%, and consensus of 32% y/y.

Workday signed Aon (#235 on the Fortune 500 list) as a new Financials customer, as well as Denny's and General Mills as new HCM customers.

The midpoint of Q4 revenue guidance of $318M was lower than consensus of $320M which translates into a 2.4% headwind, about $5.5M, on Q4 revenue due to billings terms.

Due to the upside in the quarter, the price target increased to $66 from $62.

For an analyst ratings summary and ratings history on Workday click here. For more ratings news on Workday click here.

Shares of Workday closed at $84.30 yesterday.