Workday Inc. (NASDAQ:WDAY) Reports Mixed Q2 2026 Earnings, Beats on EPS but Misses on Revenue

Workday Inc. (NASDAQ:WDAY) reported its fiscal second quarter 2026 earnings after market close on Thursday, delivering a mixed financial performance that left investors with cautious optimism. The enterprise software firm, known for its cloud-based human resources and financial management solutions, posted results that surpassed earnings expectations but fell slightly short on revenue projections, triggering a modest after-hours selloff.

The company reported total revenues of $2.348 billion for the quarter, representing a 12.6% year-over-year increase. While this growth demonstrates continued business expansion, it came in just below analyst estimates of $2.389 billion. Subscription revenues, a key performance indicator for software-as-a-service companies, reached $2.169 billion, climbing 14.0% compared to the same period last year.

On the profitability front, Workday exceeded expectations with earnings per share of $2.21, outperforming the consensus estimate of $2.157. This earnings beat reflects the company's ability to maintain strong operational efficiency and margin performance despite the revenue shortfall.

Market reaction to the earnings release has been measured but negative in initial after-hours trading, with shares declining approximately 4.25%. This movement suggests investors are weighing the positive earnings surprise against the revenue miss and considering the broader context of the company's growth trajectory.

The quarterly report also highlighted Workday's ongoing strategic initiatives, including its positioning as an AI platform for managing "people, money, and agents." The company recently announced a definitive agreement to acquire Paradox, an AI company specializing in frontline candidate experience solutions. This acquisition aligns with Workday's continued investment in artificial intelligence capabilities across its product portfolio.

Looking ahead, analysts project third quarter 2026 revenue of approximately $2.472 billion and full-year 2026 revenue of $9.702 billion. The company's performance against these forward estimates, along with any guidance provided in the earnings call, will likely influence investor sentiment in the coming weeks.

For investors seeking more detailed earnings information and future estimates, additional data is available through the earnings and estimates portal.

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.