W.

Workday, Inc.

Q2 FY26Software

Workday, Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹130

Market cap₹32.1K Cr

P/E38.6

Updated29 May 2026

Read4 min read

What the Q2 FY26 call signalled

3 of 4 strong

RevenueModerate growth

MarginMargins up

CapexCapex planned

Order bookOrder book rising

The short version

- Workday expects continued growth driven by AI adoption and agentic innovations, including organically built and acquired agents. - Workday reiterates FY ’27 subscription revenue outlook of $9.925 billion to $9.950 billion, expected growth of 12% to 13%.

From Workday, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Moderate growth

Workday expects continued growth driven by AI adoption and agentic innovations, including organically built and acquired agents.
FY ’27 subscription revenue guidance is $9.925 billion to $9.950 billion, reflecting 12-13% growth.
Q2 FY ’27 subscription revenue is expected at approximately $2.455 billion, growing 13%.
cRPO (current subscription revenue backlog) is projected to increase 13.5%-14.5% in Q2.
Flex Credits and AI APIs consumption models are anticipated to be meaningful revenue growth drivers.
International markets, including expansion in Vietnam and EU data residency, are contributing to growth.
Broad-based customer expansion with strong retention (97%) and net expansion (~60% of subscription revenue growth).

2 more points from Workday, Inc.'s call on revenue

Pro opens every point from 15K+ earnings calls

Profitability & Margins

Workday reiterates FY ’27 subscription revenue outlook of $9.925 billion to $9.950 billion, expected growth of 12% to 13%.
Q2 FY ’27 subscription revenue forecasted at approximately $2.455 billion, a 13% growth.
cRPO expected to increase between 13.5% and 14.5% in Q2.
Professional services revenue for Q2 expected around $180 million.
Non-GAAP operating margin guidance for FY ’27 raised to 30.5%; Q2 non-GAAP operating margin expected around 30%.
GAAP operating margin anticipated to be approximately 18 to 19 points lower than non-GAAP margin for FY ’27.
Q1 non-GAAP operating income was $809 million with a 31.8% margin, highlighting strong profitability.

2 more points from Workday, Inc.'s call on margins

Pro opens every point from 15K+ earnings calls

See what Workday, Inc. said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Capex planned

FY ’27 capital expenditures are expected to be approximately $270 million.
Strategic expansion into new markets such as Vietnam, supported by global and regional partners.
Launch of EU-based data residency in Frankfurt to meet European customers’ data sovereignty requirements.
Continued investment in AI, including a dedicated AI agent factory and accelerated development of AI APIs.

2 more points from Workday, Inc.'s call on capex

Pro opens every point from 15K+ earnings calls

Fundraising & Capital Structure

There is no mention of any current or future fundraising through debt or equity in the provided transcript.
The company repurchased $1.6 billion of its shares during the quarter and had $1.3 billion remaining authorization as of April 30, indicating share buybacks rather than equity issuance.
The company ended the quarter with $4.4 billion in cash and marketable securities, suggesting a strong cash position.

2 more points from Workday, Inc.'s call on fundraising

Pro opens every point from 15K+ earnings calls

See what Workday, Inc. said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Order book rising

Total subscription revenue backlog at end of Q1: $27.29 billion, up 11% year-over-year.
12-month subscription revenue backlog (cRPO) at end of Q1: $8.81 billion, growing 15.5%.
cRPO expected to increase between 13.5% and 14.5% in Q2 FY ’27.
Q2 FY ’27 subscription revenue expected to be approximately $2.455 billion, growth of 13%.
Strong gross revenue retention at 97% in Q1.
Net customer expansion contributing roughly 60% of subscription revenue growth in Q1.

2 more points from Workday, Inc.'s call on order book

Pro opens every point from 15K+ earnings calls

Others in Software this season

Figma, Inc. (Q2 FY26)
Figma, Inc. Q2 FY26 quarterly results analysis. Q2 2026 revenue guidance: $348M - $350M, implying 40% YoY growth at midpoint. Market Cap $12,396, P/E 65.1. AI-p
TeraWulf Inc. (Q2 FY26)
TeraWulf Inc. Q2 FY26 quarterly results analysis. HPC lease revenue is rapidly growing, increasing 117% from $9.7M in Q4 ’25 to $21M in Q1 ’26, with more data h
Tyler Technologies, Inc. (Q2 FY26)
Tyler Technologies, Inc. Q2 FY26 quarterly results analysis. Revenue guidance for 2026 raised, primarily due to the acquisition of For The Record (FTR), contrib
Hut 8 Corp. (Q2 FY26)
Hut 8 Corp. Q2 FY26 quarterly results analysis. Revenue grew approximately 226% year-over-year to $71 million, driven primarily by the compute segment, with gro

Compare:vs Microsoft Corporation vs Palantir Technologies Inc.vs Palo Alto Networks, Inc.

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

Arthneeti Pro · Annual

Workday, Inc. and 15K+ more earnings calls,
for less than your morning chai

a day

Every earnings call, ranking and concall Q&A across all four results seasons.

Secure Razorpay payment · instant access

Frequently Asked Questions

What were Workday, Inc. Q2 FY26 results?

- Workday expects continued growth driven by AI adoption and agentic innovations, including organically built and acquired agents. - Workday reiterates FY ’27 subscription revenue outlook of $9.925 billion to $9.950 billion, expected growth of 12% to 13%.

What is Workday, Inc. share price analysis?

Workday, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 38.6 with a market cap of $32,112. Investors should review the full earnings analysis for detailed insights.

Is Workday, Inc. planning capital expenditure?

- FY ’27 capital expenditures are expected to be approximately $270 million.

Keep Workday, Inc. on your radar — track it to get its next earnings analysis in your feed.

This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.