Workday Q2 Earnings: Analysts Expect 12.3% Revenue Growth

Workday, an enterprise software company, will report Q2 earnings on Thursday. Analysts expect a 12.3% YoY revenue growth to $2.34 billion, with adjusted earnings at $2.11 per share. Workday has a history of exceeding Wall Street's expectations, beating revenue estimates every time over the past two years. The company's peers have reported solid Q2 results, with some trading up significantly.

Workday, Inc. (WDAY), an enterprise software company, is scheduled to release its second-quarter fiscal 2026 earnings report on Thursday, August 21, after the market closes. Analysts expect a 12.3% year-over-year (YoY) revenue growth, reaching $2.34 billion, with adjusted earnings per share (EPS) at $2.11 [3].

Workday has a history of exceeding Wall Street's expectations. Over the past two years, the company has beaten revenue estimates every time, averaging a 0.9% beat. For the first quarter of fiscal 2026, Workday reported revenues of $2.24 billion, a 12.6% YoY increase, and a 1% beat over analysts' expectations [3].

Key factors driving Workday's performance include a strong focus on artificial intelligence (AI) integration. During the quarter, the company launched new AI-driven capabilities, including Illuminate Agents and a unified AI developer toolset. These initiatives aim to enhance productivity and decision-making across Human Resource Management and finance functions [1][2].

Additionally, Seattle University has adopted Workday's HCM, Financial Management, and Workday Student solutions to unify HR, finance, and student information systems into the Workday cloud platform. This move is expected to streamline everyday tasks for the campus community and positively impact Workday's third-quarter earnings [1][2].

Analysts have a positive outlook on Workday's prospects. The company's peers in the finance and HR software segment have reported solid Q2 results, with some experiencing significant gains. For instance, Marqeta and Workiva reported year-over-year revenue growth of 20.1% and 21.2%, respectively, beating analysts' expectations by 6.9% and 3% [3].

Despite the positive outlook, Workday faces some economic uncertainties, including potential tariffs and corporate tax cuts, which could impact the broader financial software sector. However, the company's strong performance and focus on AI-driven solutions position it well for continued growth.

References:
[1] https://finance.yahoo.com/news/workday-set-report-q2-results-163500764.html
[2] https://www.nasdaq.com/articles/workday-set-report-q2-results-will-revenue-growth-boost-earnings
[3] https://finance.yahoo.com/news/expect-workday-wday-q2-earnings-030059789.html