Companies /Technology

Workday Inc - Class A

NASDAQ: WDAY Software - Application
$195.79
▼ $11.13 (−5.38%) today
Markets closed · 4:33pm ET

Q2 2026 Earnings

Reported Aug 21, 2025, 4:05pm ET · SEC source
$2.21
Beat +4.48%
EPS · est. $2.12
$2.3B
Beat +0.28%
Revenue · est. $2.3B
+6.7%
Beating market
WDAY vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%Aug 21Aug 22report 4:05pm ETearnings+1.6%−2.2%
−4%0+4%Aug 21Aug 22earnings+1.6%−2.2%
WDAY −2.2%S&P 500 +1.6%
−4%0+4%Aug 21Aug 22report 4:05pm ETearnings+1.7%−2.1%
−4%0+4%Aug 21Aug 22earnings+1.7%−2.1%
WDAY −2.1%NASDAQ +1.7%
0+3%+6%Aug 20Aug 29report 4:05pm ETearnings+1.4%+6.4%
0+3%+6%Aug 20Aug 29earnings+1.4%+6.4%
WDAY +6.4%S&P 500 +1.4%
0+3%+6%Aug 20Aug 29report 4:05pm ETearnings+1.2%+6.4%
0+3%+6%Aug 20Aug 29earnings+1.2%+6.4%
WDAY +6.4%NASDAQ +1.2%
−2.77%
Day of report
+0.96%
Next session
+4.32%
One week
+9.15%
30 days

S&P 500 over the same 30 days: +2.45%.

Did WDAY Beat Earnings? Q2 2026 Results

Workday delivered a clean beat across both top and bottom lines in fiscal Q2 2026, reporting non-GAAP diluted EPS of $2.21 against a consensus estimate of $2.12, a 4.48% beat, while total revenues of $2.35 billion edged past the $2.34 billion estimate and grew 12.6% year-over-year. The standout driver behind the profitability story was a sharp expansion in non-GAAP operating margin to 29.0%, up from 24.9% a year ago, reflecting the benefits of Workday's February 2025 restructuring plan that trimmed its workforce by roughly 7.5%. Subscription revenue backlog of $7.91 billion, growing 16.4% year-over-year, reinforced the durability of demand even as investors remain cautious about a difficult selling environment across the broader software sector. Strategic momentum from the pending Paradox acquisition and the completed Flowise deal underscored Workday's push into agentic AI. Management responded to the quarter's strength by raising full-year fiscal 2026 subscription revenue guidance to $8.81 billion, representing 14.2% growth, alongside a non-GAAP operating margin target of approximately 29%.

Key Takeaways
  • AI and platform innovation driving customer adoption
  • International momentum with new global customer wins
  • Growing partner ecosystem
  • 14.0% subscription revenue growth year-over-year
  • Non-GAAP operating margin expansion from 24.9% to 29.0%
  • 12-month subscription revenue backlog grew 16.4% to $7.91 billion
  • Total subscription revenue backlog grew 17.6% to $25.37 billion

“Workday delivered another solid quarter, driven by our AI and platform innovation, international momentum, and an ecosystem that continues to grow alongside us. Customers are choosing Workday because we help them unlock value today and prepare for what's next—whether that's navigating AI transformation, streamlining operations, or creating more meaningful work for their people.”

Workday CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q3 2026 (ending October 31, 2025), Workday guides subscription revenues of $2.235 billion, representing 14.1% growth, with non-GAAP operating margin of 28.0%. For the full fiscal year 2026 (ending January 31, 2026), Workday raised subscription revenue guidance to $8.815 billion, representing 14.2% growth, and increased non-GAAP operating margin guidance to approximately 29%. The updated full-year guidance incorporates the pending Paradox acquisition.

WDAY YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$700.0M$1.4B$2.1B$2.1B$2.3BRevenue$1.6B$1.8BGross Profit$111.0M$248.0MOperating Income$132.0M$228.0MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

WDAY Revenue by Segment

Subscription Services$2.2B+14.0%
Professional Services$179.0M

Figures from SEC filings and company reports. Not investment advice.