Workday beats Q2 expectations slightly, but slowing subscription growth weighs on shares
📊 Workday reported Q2 FY27 revenue of $2.649 billion, up 12.8% YoY and slightly above estimates. Subscription revenue rose 13.9% to $2.471 billion, while non-GAAP EPS reached $2.75 versus expectations of around $2.61.
🤖 AI adoption continued to expand, with AI accounting for more than 25% of new ACV. AI-related ARR approached $600 million, up more than 200% YoY, while over 5,500 customers are now using at least one Workday agent.
📉 However, the outlook points to further moderation in growth. Workday expects Q3 subscription revenue to rise about 12%, below Q2’s 13.9% pace, while FY28 growth is projected at around 11%.
📌 Workday shares fell roughly 5–7% in early after-hours trading, suggesting investors focused more on the forward growth trajectory than the relatively modest earnings beat.
$WDAY.US
📊 Workday reported Q2 FY27 revenue of $2.649 billion, up 12.8% YoY and slightly above estimates. Subscription revenue rose 13.9% to $2.471 billion, while non-GAAP EPS reached $2.75 versus expectations of around $2.61.
🤖 AI adoption continued to expand, with AI accounting for more than 25% of new ACV. AI-related ARR approached $600 million, up more than 200% YoY, while over 5,500 customers are now using at least one Workday agent.
📉 However, the outlook points to further moderation in growth. Workday expects Q3 subscription revenue to rise about 12%, below Q2’s 13.9% pace, while FY28 growth is projected at around 11%.
📌 Workday shares fell roughly 5–7% in early after-hours trading, suggesting investors focused more on the forward growth trajectory than the relatively modest earnings beat.
$WDAY.US
