Loading...
•
Jul 31, 2025
Workday Q2 2026 Earnings Report
Workday reported solid Q2 results with strong growth in subscription revenue and net income.
Key Takeaways
Workday delivered a strong Q2 FY26 performance, fueled by a 14% rise in subscription revenue and expanded non-GAAP operating margins, driven by AI and platform innovation.
Total revenue reached $2.348 billion, up 12.6% YoY
Subscription revenue rose to $2.169 billion, up 14% YoY
Non-GAAP EPS grew to $2.21 from $1.75 in the prior year
Free cash flow increased to $588 million, reflecting healthy operational performance
Revenue by Segment
Forward Guidance
Workday raised its full-year guidance following Q2 momentum and the Paradox acquisition.
Positive Outlook
- Raised FY26 subscription revenue guidance to $8.815B (+14.2%)
- Raised FY26 non-GAAP operating margin guidance to 29%
- Q3 subscription revenue expected at $2.235B (+14.1%)
- Strong customer demand for AI-powered solutions
- Positive momentum from international expansion and acquisitions
Challenges Ahead
- Macroeconomic and geopolitical volatility may impact IT budgets
- Restructuring-related costs expected to continue through the year
- Ongoing reliance on share-based compensation expenses
- Unearned revenue declined from previous quarter
- Professional services revenue showed slight YoY decline
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...