EarningsQ2 2027 Earnings Report
MX:WDAY Q2 2027 EPS Results
Actual EPS$49.94
Consensus EPS$47.42
Beat/MissBeat by +$2.52
One Year Ago EPS$40.14
MX:WDAY Q2 2027 Revenue Results
Actual Revenue$48.15B
Expected Revenue$47.88B
Beat/MissBeat by +$269.57M
YoY Revenue Growth+13.29%
Earnings Announcement Details
QuarterQ2 2027
Date08/27/2026
TimeAfter Close
Conference CallThursday, August 27, 2026
MX:WDAY Upcoming Earnings
Workday's next earnings date is estimated for December 1, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:WDAY Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong AI-driven adoption, rapid ARR growth from AI SKUs, sizable engagement metrics (recruiting interactions, deployment/adoption momentum), healthy subscription revenue growth (+14% YoY) and expanding non-GAAP margins. Management emphasized active customer adoption initiatives (Sana Lighthouse, UMSA migration), platform openness, and continued investment in AI while completing buybacks and raising margin guidance. Primary risks are timing and monetization of consumption-based AI (flex credits), a mix shift affecting backlog growth rates, a GAAP/non-GAAP margin gap, and the early-stage nature of much of the AI revenue — all of which may delay near-term revenue realization. Overall, the positives around product momentum, customer traction, and margin discipline outweigh the execution and timing challenges.Company Guidance
AI-driven New ACV Contribution
AI products generated more than $100 million of new ACV in the quarter, accounting for over 25% of all new ACV closed in Q2.
Rapid Customer Adoption of Agents
More than 5,500 customers are using one or more of Workday's organic agents, up more than 35% quarter-over-quarter, showing accelerating adoption.
AI ARR Growth
Nearly $600 million in ARR from AI SKUs, up more than 200% year-over-year and over 20% from last quarter, indicating fast monetization of AI offerings at ARR scale.
Recruiting and Scheduling Scale
Recruiting agent engaged with over 30 million candidates and automatically scheduled more than 8 million interviews in the quarter, demonstrating high-volume operational impact.
Contract Intelligence Momentum
Workday's contract intelligence agent drove nearly 70% year-over-year growth in agreements processed, signaling strong value in procurement/legal workflows.
Sana Enterprise Early Traction
Sana Enterprise rollout: internally 12,000 active users built 22,000 custom agents in three weeks; Sana monthly active users grew ~190% year-over-year and 78% of published courses were created with AI.
Deployment & Adoption Agent Acceleration
Deployment agent is live with more than 4,600 customers (almost 24,000 users) and query volume surged nearly 500% in Q2; Adoption agent signed ~200 customers in the first three days and achieved a 94% customer satisfaction rate.
Workday Go and Medium Enterprise Momentum
Workday Go customer volume increased more than 5x over Q1, with improved win rates and deal volume in Q2, showing traction in medium enterprise market.
Learning and Planning Growth
Combined Sana Learn and Workday Learning drove the learning business to more than triple quarter-over-quarter; Adaptive Decision Intelligence reached GA quickly and has 170 customers already.
Strong Revenue, Backlog and Retention
Q2 subscription revenue was $2.407 billion (+14% YoY); total revenue $2.649 billion (+13% YoY). 12-month subscription revenue backlog (CRPO) was $9.03 billion (+14.2% YoY); total subscription backlog $27.4 billion (+8% YoY). Gross revenue retention remained strong at 97%.
Profitability and Cash Flow
Non-GAAP operating income of $824 million with a 31.1% non-GAAP operating margin; operating cash flow of $520 million and free cash flow of $460 million. Completed $1.3 billion of share repurchases this quarter, finishing the $5 billion program six months early and announcing a new $4 billion open-ended repurchase authorization.
Positive Forward Outlook and Margin Expansion
Updated FY2027 subscription revenue guidance of $9.94–$9.95 billion (≈13% growth). Management increased FY2027 non-GAAP operating margin guidance to ~31% and expects at least a 2 percentage point non-GAAP margin expansion in FY2028.
MX:WDAY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed