Core Insights - Workday reported quarterly earnings of $2.21 per share, exceeding the Zacks Consensus Estimate of $2.09 per share, and up from $1.75 per share a year ago, representing an earnings surprise of +5.74% [1] - The company achieved revenues of $2.35 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 0.35% and increasing from $2.09 billion year-over-year [2] - Workday has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Workday's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.11 on revenues of $2.42 billion, and for the current fiscal year, it is $8.70 on revenues of $9.5 billion [7] Industry Context - The Internet - Software industry, to which Workday belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Workday's performance [5] Stock Performance - Workday shares have underperformed the market, losing about 11.8% since the beginning of the year, while the S&P 500 has gained 8.7% [3] - The estimate revisions trend for Workday was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

Company Performance - Verra Mobility Corp (VRRM) reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.27 per share a year ago, representing an earnings surprise of 3.45% [1] - The company posted revenues of $223.25 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.07%, compared to year-ago revenues of $209.73 million [2] - Over the last four quarters, Verra Mobility has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Verra Mobility shares have declined approximately 8% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $233.49 million, and for the current fiscal year, it is $1.30 on revenues of $931 million [7] - The estimate revisions trend for Verra Mobility is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Verra Mobility belongs, is currently in the top 37% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]