Workday Inc - Class A

Workday delivered a clean beat across the board in fiscal Q2 2027, extending its streak of consensus EPS beats to five consecutive quarters as the enterprise software company demonstrated that its aggressive push into agentic AI is translating into tangible financial results. Non-GAAP diluted EPS of $2.75 cleared the $2.61 consensus by 5.28%, while revenue of $2.65 billion grew 12.8% year-over-year and edged past estimates by 0.52%, with subscription revenue, the core of the business, climbing 13.9% to $2.47 billion. Non-GAAP operating margins widened to 31.1% from 29.0% a year ago, reflecting the scaling efficiencies management has been signaling. The AI narrative was hard to ignore, with CEO Aneel Bhusri noting that AI now accounts for more than 25% of new annual contract value and that over 5,500 customers are actively using at least one Workday agent, a figure up more than 35% from the prior quarter. In a sector where enterprise AI adoption has become the central metric for re-rating, that kind of engagement data carries weight. Looking ahead, Workday raised its full-year FY2027 subscription revenue guidance to $9.94 billion to $9.95 billion and lifted its non-GAAP operating margin outlook to 31.0%.