Workday Inc. (NASDAQ:WDAY) shares were trading higher in Tuesday's after-hours session after the company reported better-than-expected third-quarter financial results and issued fourth-quarter guidance.

Here's what's moving the stock.

What To Know: Workday posted earnings of $1.56 per share, beating The Street's estimate of $1.41 per share.

Revenue of $1.87 billion topped the analyst consensus estimate of $1.848 billion. The figure represented a year-over-year increase of 16.7%.

Additionally, subscription revenues were $1.69 billion, up 18.1% from the same period last year.

The company also had cash, cash equivalents and marketable securities of $6.88 billion as of Oct. 31.

Workday anticipated fourth-quarter subscription revenue to be $6.598 billion while adjusted operating margins were estimated to be 23.8%

Co-CEO Carl Eschenbach, weighed in on the results, saying, "Workday delivered a strong quarter, demonstrating how organizations across industries and geographies are continuing to place their trust in Workday."

"The momentum across our business is palpable, powered by our AI innovation, strength in full platform deals, expanding partner ecosystem, and international growth — with EMEA surpassing $1 billion annual recurring revenue in the quarter. Now with over 5,000 core Workday HCM customers, more companies around the world are turning to Workday to manage their most precious assets: their people and money."

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WDAY Price Action: Shares of WDAY were up 3.56% at $245.95 in the after-hours session at the time of publication, according to Benzinga Pro.

Photo: Lalmch from Pixabay