Workday Q2 Beats: Revenue Up 12.8%, Raises FY27 Margin Guidance to 31%
WDAY sits 75% above its 52-week low of $110.36.
Summary
Workday delivered a strong fiscal Q2 with total revenue of $2.649B, up 12.8% year-over-year, and subscription revenue of $2.471B, up 13.9%. Non-GAAP operating margin expanded to 31.1% from 29.0% a year ago, and non-GAAP diluted EPS came in at $2.75 versus $2.21. The company raised its full-year non-GAAP operating margin guidance to 31.0% and reiterated subscription revenue growth of 13%, while also announcing a new $4.0B share repurchase authorization. Backlog remains healthy with 12-month subscription revenue backlog up 14.2% to $9.034B. Workday sees Q3 subscription revenues of $2.52B, up 12%, and FY27 subscription revenues of $9.94B-$9.95B. Despite the earnings beat and rosier subscription outlook, the stock is falling.
At the time of this announcement, WDAY was trading at $193.57 on NASDAQ in the Technology sector, with a market capitalization of approximately $47.8B. The 52-week trading range was $110.36 to $249.85. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: PR Newswire.