Workday Raises FY26 Subscription Revenue Guidance to $8.815B Amid AI Suite Expansion and Partner Ecosystem Growth.

Workday raises FY26 subscription revenue guidance to $8.815B. Q2 2025 results show 14% subscription revenue growth and a non-GAAP operating margin of 29%. CEO Carl Eschenbach highlights strong customer engagement and the expansion of the AI suite and partner ecosystem.

Workday Inc. (NASDAQ: WDAY) reported its fiscal 2025 second quarter results, showcasing strong growth and financial performance. The company announced total revenues of $2.348 billion, a 12.6% year-over-year (YoY) increase. Subscription revenues, a key indicator of the company's growth, reached $2.169 billion, representing a 14.0% YoY increase [1].

The company's operating income for the quarter was $248 million, equating to 10.6% of total revenues, up from 5.3% in the same period last year. Non-GAAP operating income for the second quarter was $680 million, or 29.0% of revenues, compared to $518 million, or 24.9% of revenues, in the same period last year [1].

Workday's CEO, Carl Eschenbach, commented on the results, stating, "Workday delivered another solid quarter, driven by our AI and platform innovation, international momentum, and an ecosystem that continues to grow alongside us. Customers are choosing Workday because we help them unlock value today and prepare for what's next—whether that's navigating AI transformation, streamlining operations, or creating more meaningful work for their people" [1].

The company's CFO, Zane Rowe, added, "Our second quarter results reflect the strength of our platform and our continued progress across several of our growth initiatives. Following our first half momentum—and also incorporating the acquisition of Paradox—we are increasing our fiscal 2026 subscription revenue guidance to $8.815 billion, representing growth of 14%, and increasing our fiscal 2026 non-GAAP operating margin guidance to approximately 29%" [1].

Workday's strong performance was supported by the acquisition of Paradox, a conversational AI candidate experience agent, aiming to strengthen its AI-powered talent acquisition suite. The company also unveiled a new AI developer toolset and introduced the Workday Agent Partner Network, a global ecosystem of partners building AI agents that will connect with the Workday Agent System of Record [1].

The company's financial outlook for the fiscal 2026 third quarter and full year is as follows: Subscription revenues of $2.235 billion, representing growth of 14.1%, and a non-GAAP operating margin of 28.0% for the third quarter, and $8.815 billion in subscription revenues, representing growth of 14.2%, and a non-GAAP operating margin of 29.0% for the full year [1].

Workday plans to host a conference call today to review its fiscal 2025 second quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast [1].

References:
[1] https://investorshub.advfn.com/market-news/article/15167/workday-beats-earnings-expectations-but-cautious-outlook-drags-shares
[2] https://www.ainvest.com/news/workday-q2-rev-12-6-yoy-2-348-bln-subscription-rev-14-yoy-2508/
[3] https://seekingalpha.com/news/4488189-workday-raises-fy26-subscription-revenue-guidance-to-8_815b-while-expanding-ai-suite-and