Results
Fiscal Second Quarter Total Revenues of $2.649 Billion, Up 12.8% Year-Over-Year
3Subscription Revenues of $2.471 Billion, Up 13.9% Year-Over-Year
Fiscal 2027 Second Quarter Results
Total revenues were $2.649 billion, an increase of 12.8% from the second quarter of fiscal 2026.
6Subscription revenues were $2.471 billion, an increase of 13.9% from the same period last year.
Operating income was $313 million, or 11.8% of revenues, compared to an operating income of $248 million, or 10.6% of revenues, in the same period last year .
Non-GAAP operating income for the second quarter was $824 million, or 31.1% of revenues, compared to a non-GAAP operating income of $680 million, or 29.0% of revenues, in the same period last year.
2Diluted net income per share was $2.57, compared to diluted net income per share of $0.84 in the same period last year.
Included within diluted net income per share for the current quarter is a tax benefit of $1.52 per share related to an intra-entity transfer of certain intellectual property rights as part of an internal legal entity restructuring.
4Non-GAAP diluted net income per share was $2.75, compared to non-GAAP diluted net income per share of $2.21 in the same period last year.
812-month subscription revenue backlog was $9.034 billion, up 14.2% from the same period last year.
Total subscription revenue backlog was $27.403 billion, increasing 8.0% year-over-year.
Operating cash flows were $520 million compared to $616 million in the same period last year.
7Free cash flows were $460 million compared to $588 million in the same period last year.
Capital return
Workday repurchased approximately 9.8 million shares of Class A common stock for $1.3 billion as part of its share repurchase programs.
Results
Cash, cash equivalents, and marketable securities were $3.403 billion as of July 31, 2026.
Management commentary
Comments on the News
“We had a strong Q2, with AI driving more than 25% of our new ACV and more than 5,500 customers now using at least one of our organic agents,” said Aneel Bhusri, co-founder, CEO, and chair, Workday.
“Because of Workday’s deterministic rails, customers can trust our agents with the work that matters, and you're seeing that in the numbers.”
Outlook
“Our Q2 results reflect continued momentum across our platform, with AI emerging as a strategic driver of customer expansion,” said Zane Rowe, CFO, Workday.
1“We now expect fiscal 2027 subscription revenue of $9.940 billion to $9.950 billion, growth of 13%, while increasing our fiscal 2027 non-GAAP operating margin guidance to 31.0%.Guidance raised
We continue to prioritize investment in our agentic AI roadmap and our platform opportunity while driving operational efficiencies as we scale.”
Management commentary
Recent Business Highlights
Workday welcomed new customers including BWX Technologies, Inc., Guess, KPMG LLP, and S-E-B, and expanded existing relationships with Caterpillar, Delivery Hero (Talibat), Lithia & Driveway, Merck & Co., Inc., and Novartis.
Capital return
Workday announced that its Board of Directors authorized the open-ended repurchase of up to an additional $4.0 billion of its outstanding shares of Class A common stock.
Results
More than 5,500 customers now use one or more of Workday’s organic agents, up more than 35% from last quarter.
Corporate events
Workday unveiled Developer Agent, which lets developers build AI apps and agents on Workday using natural language in agentic tools they already use, and Agent Passport, which tests and verifies every AI agent, Workday-built or third-party, before it goes into production, and continuously monitors it after.
Workday Learning, powered by Sana, which combines Workday’s trusted people and skills data with Sana’s AI-native learning experience, became generally available.
Workday introduced Adaptive Decision Intelligence, a new AI capability that lets finance and operations teams ask questions in natural language, model scenarios in minutes, and act on results right away.
Workday’s Financial Audit Agent, which is designed to significantly cut the time to build audit evidence packages, became generally available.
Workday announced a new research arm, which publishes peer-reviewed research tackling some of the hardest technical challenges in enterprise AI, and released a first wave of findings on making enterprise AI agents more reliable, trustworthy, and efficient.
Workday announced a new partnership with Amazon Web Services (AWS), where Workday Data Cloud will integrate with AWS to provide bi-directional, zero-copy access between AWS data and AI services, and Workday's HR and finance data.
Workday expanded its strategic partnership with Google Cloud to bring Workday agents directly into Gemini Enterprise and create a single, trusted foundation where agents from Workday, Google Cloud, and third-parties work together on real HR and finance workflows.
Workday was named a Leader in the 2026 Gartner® Magic Quadrant™ for Talent Acquisition (Recruiting) Suites.
Workday VNDLY was named a Leader in Everest Group’s Vendor Management System PEAK Matrix® Assessment 2026 for the sixth consecutive year.
1 Gartner, Magic Quadrant for Talent Acquisition (Recruiting) Suites, Rania Stewart, Jackie Watrous, Hiten Sheth, 8 May 2026
Outlook
Financial Outlook
Workday is providing guidance for the fiscal 2027 third quarter ending October 31, 2026 as follows:
Subscription revenues of $2.515 billion, representing growth of 12%
Non-GAAP operating margin of 30.0% 1
Workday is updating guidance for the fiscal 2027 full year ending January 31, 2027 as follows:
5Subscription revenues of $9.940 billion to $9.950 billion, representing growth of 13%
Non-GAAP operating margin of 31.0% 1
28 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.