Workday, Inc. (WDAY) reported second-quarter fiscal 2027 non-GAAP earnings of $2.75 per share, marking a 24.4% increase from $2.21 a year prior and exceeding the Zacks Consensus Estimate of $2.62. Revenue grew by 12.8% to $2.65 billion, slightly above the consensus estimate of $2.63 billion. Subscription revenues rose 13.9% year over year to $2.47 billion, comprising approximately 93% of total revenue. The 12-month subscription revenue backlog also increased by 14.2% to $9.03 billion.
AI products boosted growth significantly, driving more than $100 million in new annual contract value, which represents over 25% of the total new Annual Contract Value. Operating cash flow totaled $520 million for the quarter, down from $616 million in the previous year, attributed to payroll timing. The firm reported cash and cash equivalents of $3.4 billion and long-term debt of $1.99 billion as of July 31, 2026.
For fiscal 2027, Workday expects total revenues of $10.65–$10.66 billion, a 12% increase, with an adjusted operating margin forecast of 31%. Management projects subscription revenue growth of 13%, reflecting robust demand for AI solutions and subscription services.
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