Workday Q2 2027: AI Now Drives 25% of New Contract Value
As seen on the 24/7 Wall St. homepage on August 27, 2026.
AI now drives more than 25% of Workday's new annual contract value, and that traction lifted full-year subscription revenue guidance to roughly $9.94 billion. Over 5,500 customers now run at least one of its agents, on top of a fifth straight quarterly beat.
Continue ReadingShow less
Workday beat expectations again in fiscal Q2 2027, with non-GAAP diluted EPS of $2.75 topping the $2.61 consensus and marking the fifth consecutive quarter above estimates. Subscription revenue, the core of the business, climbed 13.9% year-over-year.
More than 25% of new annual contract value is now driven by AI products, with over 5,500 customers actively running at least one Workday agent. CEO Aneel Bhusri said the adoption reflects customer trust in what he called the company's deterministic rails, designed to make agents reliable enough to handle consequential HR and finance tasks.
Disclosure
*$149 for two years (or $1.43 per week) is an introductory promotion for new members only. 62% discount based on the current list price of Stock Advisor of $199/year. Membership will renew at the then-current list price at the end of the membership term. Stock Advisor returns are 930% as compared to the S&P 500 returns of 185% as of April 7, 2026.
The same investor newsletter that told subscribers to buy Amazon in 2002, Netflix in 2004, and Nvidia in 2005 still publishes two new stock picks every month. Over 23 years, Motley Fool's Stock Advisor has more than quadrupled the S&P 500. New members get this month's picks, the Top 10 Rankings, and a 30-day money-back guarantee. Click here to unlock their next top stocks while new members are still being accepted.
Profitability improved alongside the top line, with non-GAAP operating margins expanding to 31.1% from 29.0% a year ago, a sign the company is scaling its AI investments without sacrificing efficiency. The 12-month subscription revenue backlog rose 14.2%, providing substantial forward visibility.
Management raised full-year fiscal 2027 subscription revenue guidance to a range of $9.94 billion to $9.95 billion, representing 13% growth, and lifted the non-GAAP operating margin outlook to 31.0%. The board also authorized a new $4.0 billion share repurchase program after the company bought back roughly 9.8 million shares during the quarter.
Mentioned: WDAY