Workday Non-GAAP EPS of $2.21 beats by $0.09, revenue of $2.35B beats by $10M

Workday reported a strong second-quarter performance with a Non-GAAP EPS of $2.21, exceeding analysts' estimates by $0.09, and revenue of $2.35 billion, which grew 13% year-over-year and surpassed forecasts by $10 million.

The company expects its subscription revenues for the third quarter of fiscal 2026 to reach $2.235 billion, reflecting a 14.1% increase, with a projected Non-GAAP operating margin of 28%.

Workday has revised its full fiscal year 2026 subscription revenue guidance to $8.815 billion, indicating a growth of 14.2%, and an expected improvement in the Non-GAAP operating margin to 29%.

Following the positive earnings announcement and guidance adjustments, Workday's shares rose by 5.24% in after-hours trading.

Recommendation Rating: Strong Buy

In a recent press release, Workday (NASDAQ: WDAY) announced its financial results for the second quarter. The company reported a Non-GAAP earnings per share (EPS) of $2.21, surpassing analysts' expectations by $0.09. Its revenue stood at $2.35 billion, reflecting a year-over-year growth of 13%, and exceeding forecasts by $10 million.

Workday has provided guidance for the third quarter of fiscal 2026, which concludes on October 31, 2025. The company anticipates subscription revenues to reach $2.235 billion, indicating a 14.1% increase. Additionally, the Non-GAAP operating margin is projected to be 28%.

Furthermore, Workday has revised its guidance for the full fiscal year 2026, ending on January 31, 2026. The anticipated subscription revenues are now estimated at $8.815 billion, exhibiting a growth of 14.2%, while the Non-GAAP operating margin is expected to improve to 29%.

Following the announcement, Workday's shares increased by 5.24% in after-hours trading.