10-QPeriod: Q2 FY2027

Workday, Inc. Quarterly Report for Q2 Ended Jul 31, 2026

Filed August 27, 2026For Securities:WDAY

Summary

Workday, Inc. (WDAY) reported solid financial results for the six months ended July 31, 2026, demonstrating continued revenue growth and improved profitability. Total revenues increased by 13% year-over-year to $5.2 billion, driven primarily by a 14% increase in subscription services revenue, which now constitutes approximately 93% of total revenue. The company's operating income significantly improved, with GAAP operating income increasing to $651 million from $287 million in the prior year period, leading to a GAAP operating margin of 12.5%. Non-GAAP operating income also showed strong growth, reaching $1.6 billion with a margin of 31.5%. Cash flow generation remains robust, with operating activities providing $1.2 billion. The company maintained a strong liquidity position with $3.4 billion in cash, cash equivalents, and marketable securities as of July 31, 2026. Significant share repurchases were undertaken, with $2.9 billion used in financing activities during the six-month period, reflecting a commitment to returning capital to shareholders. The company also authorized a new $4.0 billion share repurchase program in August 2026.

Key Highlights

  • 1Total revenues increased by 13% to $5.2 billion for the six months ended July 31, 2026, compared to the prior year period.
  • 2Subscription services revenue, the company's primary revenue driver, grew by 14% to $4.8 billion.
  • 3GAAP operating income improved significantly, reaching $651 million, with a GAAP operating margin of 12.5%, up from 6.3% in the prior year.
  • 4Non-GAAP operating income was $1.6 billion, with a healthy non-GAAP operating margin of 31.5%.
  • 5Cash provided by operating activities was $1.2 billion for the first six months of the fiscal year.
  • 6The company maintained a strong liquidity position with $3.4 billion in cash, cash equivalents, and marketable securities as of July 31, 2026.
  • 7Significant share repurchases were executed, totaling $2.9 billion, and a new $4.0 billion share repurchase program was authorized in August 2026.

Frequently Asked Questions

For the six months ended July 31, 2026, Workday's total revenues increased by 13% to $5.2 billion. Subscription services revenue, which is the core of their business, grew by 14% to $4.8 billion, indicating strong customer adoption and expansion.

Workday demonstrated a significant improvement in profitability. GAAP operating income rose to $651 million, resulting in a GAAP operating margin of 12.5%, a substantial increase from 6.3% in the same period last year. Non-GAAP operating income also showed strength, reaching $1.6 billion with a margin of 31.5%.

The company generated $1.2 billion in cash from operating activities during the first six months of fiscal 2027. As of July 31, 2026, Workday maintained a robust liquidity position with $3.4 billion in cash, cash equivalents, and marketable securities, indicating strong financial health and flexibility.

Workday actively engaged in share repurchases, utilizing $2.9 billion in financing activities for this purpose during the six-month period. Furthermore, the company announced a new $4.0 billion share repurchase program in August 2026, signaling continued confidence and a commitment to shareholder returns.