Workday ( (WDAY) ) has released its Q2 earnings. Here is a breakdown of the information Workday presented to its investors.
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Workday, Inc. is a leading AI platform specializing in managing people, money, and agents, serving over 11,000 organizations globally, including more than 65% of the Fortune 500.
In its fiscal 2026 second quarter, Workday reported a robust financial performance with total revenues reaching $2.348 billion, marking a 12.6% increase from the previous year. Subscription revenues also saw a significant rise, growing by 14% year-over-year to $2.169 billion.
Key financial highlights include an operating income of $248 million, representing 10.6% of revenues, and a non-GAAP operating income of $680 million, or 29% of revenues. The company also reported a diluted net income per share of $0.84, up from $0.49 in the previous year, with a non-GAAP diluted net income per share of $2.21. Additionally, Workday’s subscription revenue backlog increased by 17.6% year-over-year, reaching $25.37 billion.
Strategically, Workday expanded its customer base and partnerships, welcomed new clients like Banamex and Carrefour, and acquired Paradox and Flowise to enhance its AI capabilities. The company also launched Workday Government, a subsidiary focused on serving the U.S. Government, and expanded its presence in India.
Looking ahead, Workday’s management remains optimistic, raising its fiscal 2026 subscription revenue guidance to $8.815 billion, reflecting a 14% growth, and projecting a non-GAAP operating margin of approximately 29%.