WDAYEarnings

WDAY Q2 FY2026 Operating margin 11.8%, Miss Guidance by -16.2 pts

WDAY miss prior Q2 FY2026 Operating margin guidance by -16.2 pts. Workday reported fiscal 2027 second quarter total revenues of $2.649 billion, up 12.8% year-over-year, and subscription revenues of $2.471 billion, up 13.9% year-over-year. Non-GAAP operating margin was 31.1% and non-GAAP diluted EPS was $2.75. The company increased its fiscal 2027 non-GAAP operating margin guidance to 31.0% and updated fiscal 2027 subscription revenue guidance to $9.940 billion to $9.950 billion, representing 13% growth. The Boar...

Published August 27, 2026 at 4:05 PM EDTWorkday, Inc.Investor relations

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Guidance comparison

Operating marginQ2 FY2026

11.8%Guide 28.0% | miss | -16.2 pts | -57.9%

Subscription revenuesQ2 FY2026

$2.471 billionGuide $2.160 billion | beat | +$311.0M | +14.4%

Forward guidance

Subscription revenueQ3 FY2027

$2.515 billion12%

Non-GAAP operating marginQ3 FY2027

30.0%+1.5 pp implied Y/Y vs Q3 FY2026

Subscription revenueFY2027

$9.940 billion - $9.950 billion13%

Non-GAAP operating marginFY2027

31.0%

Key takeaways

Total revenues of $2.649 billion, up 12.8% year-over-year
Subscription revenues of $2.471 billion, up 13.9% year-over-year
GAAP operating income of $313 million (11.8% margin) versus $248 million (10.6%) prior year
Non-GAAP operating income of $824 million (31.1% margin) versus $680 million (29.0%) prior year
GAAP diluted EPS of $2.57 (includes $1.52 per share tax benefit from intra-entity IP transfer); non-GAAP diluted EPS of $2.75 versus $2.21 prior year
Operating cash flow of $520 million; free cash flow of $460 million
12-month subscription revenue backlog of $9.034 billion, up 14.2% year-over-year; total subscription revenue backlog of $27.403 billion, up 8.0%

Key metrics

Total revenuesQ2 FY2027

$2.649 billion12.8%

Subscription revenuesQ2 FY2027

$2.471 billion13.9%

Operating incomeQ2 FY2027

$313 million

Operating marginQ2 FY2027

11.8%

Non-GAAP operating incomeQ2 FY2027

$824 million

Non-GAAP operating marginQ2 FY2027

31.1%

Diluted net income per share (GAAP)Q2 FY2027

$2.57

Non-GAAP diluted net income per shareQ2 FY2027

$2.75

Primary source

TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.

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