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WDAYBullishEarningsnews
High materiality8/10

Workday Q2 results show AI-led growth and strong backlog amid guidance raise

Aug 27, 2026, 4:06 PM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

The print confirms solid topline growth, expanding AI contribution to ACV, and a raised full-year outlook, which historically supports multiple expansion for high-growth software names. Buyback and cash position reinforce credibility; expectations for continued AI-led expansion could drive multiple re-rating short-to-mid term.

AI summary

What happened, with direct paths to the underlying reporting

Workday posted fiscal 2027 Q2 revenue of $2.649B, up 12.8% YoY, with $2.471B in subscription revenue up 13.9%. AI momentum is translating into ticket growth, with AI contributing over 25% of new ACV and more than 5,500 customers using at least one AI agent. Management raised FY2027 guidance to a subscription revenue of about $9.94–9.95B and non-GAAP margin to 31.0%, signaling confidence in the AI roadmap and durable ARR expansion.

  • Q2 revenue $2.649B, +12.8% YoY; subscription $2.471B, +13.9%.
  • Operating income $313M (11.8%); non-GAAP OI $824M (31.1%).
  • 12-month subscription backlog $9.034B, +14.2% YoY; total backlog $27.403B.
  • AI momentum: >25% of new ACV from AI; 5,500+ customers using organic agents.
  • Guidance raised for FY2027; Q3 subscription rev $2.515B; non-GAAP margin 30%.

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