Workday Reports Strong Q2 Earnings and Raised Fiscal Outlook
Workday reported solid fiscal second-quarter results in August 2026. Revenue rose by 13% year-over-year to $2.649 billion, with subscription revenue increasing 14% to $2.471 billion. The company's current remaining performance obligations grew 14.2% to $9.03 billion and it achieved a non-GAAP operating margin of 31.1%. AI adoption accelerated significantly during the quarter, contributing over $100 million in new annual contract value (ACV) and representing more than 25% of all new ACV. Workday raised its fiscal year 2027 subscription revenue guidance to between $9.94 billion–$9.95 billion and increased full-year non-GAAP operating margin expectations to 31%. The company also announced a new open-ended share repurchase program worth up to $4 billion after completing the previous $5 billion buyback six months ahead of schedule. CEO Aneel Bhusri highlighted that more than 5,500 customers were using Workday's AI agents and noted significant growth in customer adoption. The company also reported strong cash flow metrics with operating cash flow at $520 million and free cash flow at $460 million.
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