Workday Reports Q2 2027 Earnings with Strong Revenue Growth and AI Adoption Momentum
Workday (WDAY) reported second-quarter earnings for fiscal year 2027 on August 27, showing strong revenue growth driven by continued platform momentum and artificial intelligence adoption. Total revenues reached $2.649 billion, up 12.8% from the prior period, with subscription revenue growing to $2.471 billion (up 13.9%). The company also reported a non-GAAP operating margin of 31.1%, an increase from last year's 29.0%. Free cash flow for the quarter was $460 million, slightly down due to payroll timing. Workday highlighted significant progress in AI adoption, with new annualized contract value (ACV) exceeding $100 million and nearly $600 million in AI SKU ARR—up over 200% year-over-year. The company also announced a shift toward customer-based bookings, which impacted the total subscription revenue backlog growth at 8%. Workday raised its full-year non-GAAP operating margin guidance to 31.0%, reflecting ongoing cost discipline and operational efficiencies.
Tickers: $WDAY
Topics: AI_adoption non-GAAP_metrics revenue subscription_growth