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Workday (WDAY) Q2 FY27 earnings results (second quarter fiscal 2027)

10-Q filed Aug 27, 2026

Workday (WDAY) reported revenue of $2.6B for the second quarter fiscal 2027 (Q2 FY27), +13% from a year earlier and +4% from the quarter before. Operating margin was 11.8%, net earnings $632M (23.9% of revenue).

Revenue$2.6B
Year over year+13%
Quarter over quarter+4%
Operating margin11.8%
Net earnings$632M

Workday, Q2 FY27: revenue $2.6B (+13% year over year), operating margin 11.8%, net earnings $632M, operating cash flow $519M. The chart follows the revenue to costs, profit and cash.

Q2 FY27AmountQ/QY/Y
Revenue$2.6B+4%+13%
Operating profit$313M-7%+26%
Net earnings$632M+185%+177%
Operating cash flow$519M-25%-16%
Free cash flow$460M-25%-22%

What changed

Revenue was $2.6B in Q2 FY27, up 13% year over year and up 4% from the previous quarter. Subscription services was the largest line at 93% of revenue. Subscription services added $0.30B year over year (up 14%), 100% of the total change. Professional Services declined 1%.

Operating profit was $0.31B, a 11.8% margin (up 1.3 points year over year). Of the extra revenue versus Q2 FY26, 22% reached operating profit, above the 11% margin then. Total costs grew 11% against revenue growth of 13%. The fastest-growing cost line was Research & development (+13%). Net earnings were $0.63B, up 177% year over year. The effective tax rate was -93.3%.

Operating cash flow was $0.52B (down 16% year over year), 82% of net earnings. Non-cash charges added back $0.09B of depreciation and amortization and $0.46B of share-based compensation. Working capital and other items used $0.67B. Capital expenditures of $0.06B left free cash flow of $0.46B.

Questions

What was Workday's revenue in the second quarter fiscal 2027?

Workday (WDAY) reported revenue of $2.6B for the second quarter fiscal 2027 (Q2 FY27), +13% from a year earlier and +4% from the quarter before.

Was Workday profitable in the second quarter fiscal 2027?

Operating profit was $313M (11.8% of revenue) and net earnings $632M.

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Source: Workday 10-Q on SEC EDGAR.