Workday Announces Fiscal 2026 Second Quarter Financial Results

Workday's Q2 2026 results demonstrate solid financial health and strategic foresight. The company's focus on AI and platform innovation is evident through its acquisition of Flowise and Paradox, and the unveiling of a new AI developer toolset. These initiatives aim to streamline operations, enhance user experiences, and prepare customers for AI transformation.

Furthermore, Workday's increasing presence in key markets, such as India, and its recognition as a Leader in Gartner's Magic Quadrant for Cloud-Based ERP for U.S. Local Government, underscore its commitment to global expansion and industry leadership. The company's robust customer community, representing over 75 million users under contract and more than 65% of the Fortune 500, signifies its strong market penetration and customer loyalty.

The financial outlook for Q3 2026 includes subscription revenues of $2.235 billion, representing a 14.1% growth, and a non-GAAP operating margin of 28.0%. For the full fiscal year 2026, Workday anticipates subscription revenues of $8.815 billion, a 14.2% increase, and a non-GAAP operating margin of 29.0%. These projections reflect the company's confidence in its continued growth trajectory and operational efficiency.

Workday's total revenues for the second quarter of fiscal year 2026 were $2.348 billion, a 12.6% increase year-over-year.

Workday is increasing its fiscal 2026 subscription revenue guidance to $8.815 billion, representing growth of 14%.

Operating income was $248 million, or 10.6% of revenues, compared to $111 million, or 5.3% of revenues, in the same period last year.

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