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Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people, money, and agents, today announced results for the fiscal 2026 second quarter ended July 31, 2025.
Fiscal 2026 Second Quarter Results
- Total revenues were $2.348 billion, an increase of 12.6% from the second quarter of fiscal 2025. Subscription revenues were $2.169 billion, an increase of 14.0% from the same period last year.
- Operating income was $248 million, or 10.6% of revenues, compared to an operating income of $111 million, or 5.3% of revenues, in the same period last year. Non-GAAP operating income for the second quarter was $680 million, or 29.0% of revenues, compared to a non-GAAP operating income of $518 million, or 24.9% of revenues, in the same period last year.1
- Diluted net income per share was $0.84, compared to diluted net income per share of $0.49 in the second quarter of fiscal 2025. Non-GAAP diluted net income per share was $2.21, compared to non-GAAP diluted net income per share of $1.75 in the same period last year.1
- 12-month subscription revenue backlog was $7.91 billion, up 16.4% from the same period last year. Total subscription revenue backlog was $25.37 billion, increasing 17.6% year-over-year.
- Operating cash flows were $616 million compared to $571 million in the same period last year. Free cash flows were $588 million compared to $516 million in the same period last year.1
- Workday repurchased approximately 1.2 million shares of Class A common stock for $299 million as part of its share repurchase programs.
- Cash, cash equivalents, and marketable securities were $8.19 billion as of July 31, 2025.
| 1 | See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details. |
Comments on the News
“Workday delivered another solid quarter, driven by our AI and platform innovation, international momentum, and an ecosystem that continues to grow alongside us,” said Carl Eschenbach, CEO, Workday. “Customers are choosing Workday because we help them unlock value today and prepare for what’s next—whether that’s navigating AI transformation, streamlining operations, or creating more meaningful work for their people.”
“Our second quarter results reflect the strength of our platform and our continued progress across several of our growth initiatives,” said Zane Rowe, CFO, Workday. “Following our first half momentum—and also incorporating the acquisition of Paradox—we are increasing our fiscal 2026 subscription revenue guidance to $8.815 billion, representing growth of 14%, and increasing our fiscal 2026 non-GAAP operating margin guidance to approximately 29%.”
Recent Business Highlights
- Workday welcomed new customers including Banamex, Carrefour, Masan Group, Memorial Health, and Red Coats, and expanded existing relationships with Google, Nationwide Insurance, Qantas Airways, Randstad, Tokyo Electron, and University of Virginia.
- Workday entered into a definitive agreement to acquire Paradox, a candidate experience agent that uses conversational AI to simplify every step of the job application journey, and acquired Flowise, a low-code platform that makes it easy to build AI agents.
- Workday unveiled a new AI developer toolset and introduced the Workday Agent Partner Network, a global ecosystem of partners building AI agents that will connect with the Workday Agent System of Record.
- Workday launched Workday Government, a new subsidiary dedicated to serving the U.S. Government.
- The Workday customer community now represents more than 75 million users under contract and more than 65% of the Fortune 500.
- DailyPay was named Workday’s strategic partner for on-demand pay, giving employees easier access to earned wages before payday.
- Workday grew its presence in India with an expanded team, including the appointment of Sunil Jose as President of India, and a commitment to offer services from a local data center.
- Workday was named a Leader in the 2025 Gartner® Magic Quadrant™ for Cloud-Based ERP for U.S. Local Government1.
- Workday VNDLY was named a Leader and Star Performer in Everest Group’s Vendor Management Systems (VMS) PEAK Matrix® Assessment 2025.
- Workday was named a Customers’ Choice in the 2025 Gartner® Peer Insights™ Voice of the Customer for Cloud ERP for Service-Centric Enterprises2, Financial Planning Software3, and Cloud HCM Suites for 1,000+ Employee Enterprises4.
| 1 | Gartner Magic Quadrant for Cloud-Based ERP for U.S. Local Government, Albert Gauthier, Robert Stoneman, Todd Kimbriel, 19 May 2025 |
| 2 | Gartner Voice of the Customer for Cloud ERP for Service-Centric Enterprises, By Peer Contributors, 23 May 2025 |
| 3 | Gartner Voice of the Customer for Financial Planning Software, By Peer Contributors, 30 May 2025 |
| 4 | Gartner Voice of the Customer for Cloud HCM Suites for 1,000+ Employee Enterprises, By Peer Contributors, 23 May 2025 |
Financial Outlook
Workday is providing guidance for the fiscal 2026 third quarter ending October 31, 2025 as follows:
- Subscription revenues of $2.235 billion, representing growth of 14.1%
- Non-GAAP operating margin of 28.0%1
Workday is updating guidance for the fiscal 2026 full year ending January 31, 2026 as follows:
- Subscription revenues of $8.815 billion, representing growth of 14.2%
- Non-GAAP operating margin of 29.0%1
| 1 | The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin inreliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable to predict with reasonablecertainty the amount and timing of adjustments that are used to calculate this non-GAAP financial measure, particularly related to stock-based compensationand its related tax effects, acquisition-related costs, and restructuring costs. |
Earnings Call Details
Workday plans to host a conference call today to review its fiscal 2026 second quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.
Workday uses the Workday Blog as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
