WDAY US S&P 500NASDAQ-100Russell 1000 Earnings call

Workday, Inc. (WDAY) · Q2 2026 results and valuation

Share price: $191.16 · 2026-11-11

Workday, Inc. provides a cloud-based enterprise platform for managing human resources, finance, and planning. The company offers software solutions to organizations of various sizes, ranging from medium-sized businesses to large global corporations. It operates globally, providing tools for human capital management and financial management. Source: 10-K annual report (2026-03-06)

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 27 Aug 2026 and 21 May 2026

Net income up 184.7% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.

1 · Numbers

+184.7%

Net income vs Q1 2026

Outlook given

Net income 632.0M vs 222.0M

Revenue +4.2%

Against the same quarter last year (Q2 2025) it is +177.2%, so it is not just seasonal.

Why Against the same quarter last year, net income rose mainly because of a combination of revenue outperformance and ongoing cost discipline.

2 · How management spoke

Typical

Less upbeat than 65% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

Workday's ARR from AI SKUs reached nearly $600 million, increasing over 200% year-over-year and over 20% from last quarter.

Valuation

Is Workday, Inc. undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 15.4% growth a year (3-year revenue growth), the model's fair value is $366.14 a share — the stock trades 48% below it. Today's price assumes 6.5% growth a year.

Current price

$191.16

close of 2026-11-11

Market implies growth of i

+6.5% for 10 yrs

Fair value / share

$366.14

Buy below

$274.60

Price vs fair value

Undervalued 48%

Price vs buy-below price

Undervalued 30%

Management expects

Revenue +13% · from the Q2 2026 report: “The company updated its FY 2027 subscription revenue guidance to $9.94 billion to $9.95 billion, representing growth of 13%.”

A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

The company updated its FY 2027 subscription revenue guidance to $9.94 billion to $9.95 billion, representing growth of 13%.
Guidance

The company increased its FY 2027 non-GAAP operating margin guidance to 31%.
Guidance

The company maintained its FY 2027 operating cash flow outlook of $3.45 billion and expected free cash flow of $3.18 billion, representing 15% growth.
Figure

More than 5.5 thousand customers are currently using one or more organic agents.

Source quote
“Today, more than 5.5 thousand customers are using 1 or more of our organic agents.”
Figure

ARR from AI SKUs reached nearly $600 million, increasing over 200% year-over-year and over 20% from last quarter.

Source quote
“Nearly $600 million in ARR from our AI SKUs and that is up more than 200% year-over-year and up over 20% from last quarter.”

4 more

Figure

More than 30 million candidates interacted with the talent acquisition agent and AI automatically scheduled more than 8 million interviews last quarter.

Source quote
“In recruiting, more than 30 million candidates interacted with our talent acquisition agent and AI automatically scheduled more than 8 million interviews last quarter alone.”
Figure

The Workday contract intelligence agent drove nearly 70% year-over-year growth in agreements processed within procurement and legal functions.

Source quote
“In functions like procurement and legal, Workday contract intelligence agent drove nearly 70% year-over-year growth in agreements processed.”
Figure

Adaptive decision intelligence entered general availability on July 31 after moving from concept to launch in 4 months, marking one of the fastest product deliveries.

Source quote
“On July 31, adaptive decision intelligence entered into GA. And this was 1 of the fastest products we have ever delivered. From concept to general availability in 4 months.”
Figure

Custom apps built on Workday Extend grew over 90% year-over-year in Q2 despite requiring specialized engineers.

Source quote
“In Q2, custom apps built on Workday Extend grew over 90% year-over-year, even when building required specialized engineers.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Typical (was typical)

Answers to analysts Typical (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“EMEA drove solid growth, with strong performance in France, Germany, and The Nordics.”

“Gross revenue retention remained strong at 97% for the quarter, and net expansion from existing customers once again led to about 60% of our subscription revenue growth.”

“After 2 strong back-to-back quarters, I really like the momentum we have going into the second half of the year.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)

Metric	Q2 2026period end 2026-07-31	Q1 2026period end 2026-04-30	Change	Q2 2025	YoY
Revenue	2.65B	2.54B	+4.2%	2.35B	+12.8%
Operating income	313.0M	338.0M	−7.4%	248.0M	+26.2%
Net income	632.0M	222.0M	+184.7%	228.0M	+177.2%
EPS	2.57	0.87	+195.4%	0.84	+206.0%
P/E today 39.3	32.7	38.1	−5.4	106.7	−74.0

Topics

Most discussed now

Gross revenue retention remained strong at 97% for the quarter, and net expansion from existing customers once again led to...
As Workday continues to build organic agents on Workday, it is also deeply integrating acquired agents like those from Paradox,...
Workday built tools that can query work that using industry standard analytics solutions and MCP layer so AI models can...
Workday has signed some of the world's largest brands for its Lighthouse program, which gives strategic customers Sana Enterprise free...
Genesys, using Workday's new financial audit agent, the chief accounting officer described it as the first step toward the dream...

Faded since Q1 2026

Fading A few weeks ago, Workday hosted its top industry analysts at its Annual Innovation Summit, typically a skeptical group, they...
Fading All of this is adding up to agents that Workday's customers can trust to perform actual work inside real business...
Fading Q1 operating cash flow was $696 million, growth of 52% and free cash flow for the quarter was $616 million,...
Fading The uptake there on big brand names has been incredible.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-23 Material agreement; New financial obligation · SEC 8-K
Workday, Inc. entered into an underwriting agreement to issue and sell $2.5 billion in senior notes with an estimated net proceeds of $2.47 billion.
2026-10-13 Other events · SEC 8-K
Workday, Inc. entered into a definitive agreement to acquire C1.ai, an identity platform for people and agents, with the transaction expected to close in the fourth quarter of fiscal year 2027.
2026-10-01 Material agreement; Agreement terminated; New financial obligation · SEC 8-K
2026-09-29 Results of operations; Restructuring costs · SEC 8-K
Workday expects to incur approximately $65 million to $80 million in restructuring charges related to a 2.5% workforce reduction and office space reductions during fiscal 2027.
2026-08-27 Results of operations; Other events · SEC 8-K
Workday's Board of Directors authorized a share repurchase program for up to $4.0 billion of Class A common stock on August 27, 2026.
2026-06-22 Shareholder vote results · SEC 8-K · routine
2026-05-21 Results of operations · SEC 8-K
Workday, Inc. issued a press release on May 21, 2026, reporting its financial results for the fiscal quarter ended April 30, 2026.
2026-04-24 Current report · SEC 8-K · routine

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-19.

Cash & runway

Cash & equivalents

$661.0M

2026-07-31

Short-term investments

$2.74B

total $3.40B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -8.1% YoY, -3.4% QoQ.

Quarter	Shares
Q4 2024	265.4M
Q2 2025	266.5M
Q3 2025	266.8M
Q4 2025	265.9M
Q2 2026	253.9M
Q3 2026	245.2M

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 97 filings; 50 filings parsed.

Sold by insiders

2.1M shares

$333.0M · 170 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

90 days

availability of the webcast replay

Source quote
“The webcast replay of this call will be available for 90 days on our company website under the Investor Relations link.”
10/15/2026

third quarter fiscal 27 quiet period begins

Source quote
“Our third quarter fiscal 27 quiet period begins on 10/15/2026.”
October 12-15

Rising event in Las Vegas

Source quote
“Finally, Rising is coming to Las Vegas, October 12-15.”
by Workday Rising in October

Sana's conversational AI experience will be the default home screen for Workday

Source quote
“So by Workday Rising in October, Sana's conversational AI experience will be the default home screen for Workday.”
Q3

Data Cloud remains on track for GA

Source quote
“Data Cloud remains on track for GA in Q3.”