Workday's (WDAY) current remaining performance obligation, or cRPO, continues to stabilize, indicating potential H2 upside, RBC Capital Markets said in a note Thursday.

The company's Q2 cRPO exceeded Street expectations for the third consecutive quarter, with a 16.4% growth driven by short-term subscription contracts, RBC said.

Workday raised its fiscal 2026 subscription revenue guidance by $15 million, but RBC attributed the increase to the acquisition of Paradox, leaving organic subscription revenue guidance unchanged and causing share prices to decline.

"We suspect that investors were looking for a beat/raise, leading shares down after-hours," the investment firm said in the note. Shares of Workday were down more than 4% in recent trading Friday.

RBC Capital Markets reiterated its outperform rating and $340 price target on Workday.

Price: 217.74, Change: -9.84, Percent Change: -4.32