Workday, Inc. · WDAY · FY2026 Q2 · Calendar Q3 2025

Workday raises FY2026 outlook as AI adoption broadens

The current analysis supports a constructive but qualified view of Workday’s growth trajectory: resilient subscription growth, broad AI adoption and raised guidance strengthen the case, while early renewals, competitive disruption and public-sector funding remain key tests.

Reported After market closeNASDAQTechnology $48.76B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $2.21 Consensus $2.11
EPS surprise +4.7% Reported versus consensus
Reported revenue $2.35B Consensus $2.34B
Revenue surprise +0.3% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -2.8% Event window
SPY move +1.5% Same window
Abnormal move -4.3% Stock minus SPY
Volume 2.4× Versus trailing sessions
Subsequent drift +9.7% Up to 20 sessions
WDAYSPY benchmark

Ask FN2 about WDAY FY2026 Q2

Transcript, numbers and history already loaded
Why did WDAY fall 2.8% after beating EPS estimates in FY2026 Q2?What changed in WDAY's guidance and outlook in FY2026 Q2?Give me the bull and bear case for WDAY after FY2026 Q2 earnings.

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Transcript intelligence

What changed

Compared with the prior analysis, management reported faster subscription growth, raised FY2026 subscription guidance, expanded AI adoption, launched Workday Government and announced the Paradox acquisition. The prior analysis had described guidance as maintained.

Guidance delta

Management raised FY2026 subscription revenue guidance to $8.815 billion and targeted a 29% non-GAAP operating margin, versus maintained guidance in the prior analysis.

Key takeaways

  • Management described 14% subscription revenue growth, supported by AI adoption and full-suite wins.
  • AI solutions appeared in more than 30% of sales and more than 70% of net new deals, according to the analysis.
  • Workday launched a dedicated government subsidiary and announced the Paradox acquisition to expand recruiting AI capabilities.
  • International expansion, Workday GO, the partner ecosystem and AI product development remain central growth priorities.

Management priorities

  • Scale the Workday Government offering and deepen AI services for federal customers.
  • Continue rolling out Workday GO for emerging and medium-enterprise customers.
  • Expand Workday Extend and its developer ecosystem, including Developer Copilot.
  • Increase international presence, including data center services in India.

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Earnings History

Estimate Beat Miss Match
WDAY EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 2 future estimate-only quarters. Q3 '24 estimate $1.40 Q3 '24 actual $1.53, beat Q4 '24 estimate $1.47 Q4 '24 actual $1.57, beat Q1 '25 estimate $1.60 Q1 '25 actual $1.74, beat Q2 '25 estimate $1.65 Q2 '25 actual $1.75, beat Q2 '26 estimate $2.11 Q2 '26 actual $2.21, beat Q3 '26 estimate $2.17 Q3 '26 actual $2.32, beat Q4 '26 estimate $2.32 Q4 '26 actual $2.47, beat Q1 '27 estimate $2.51 Q1 '27 actual $2.66, beat Q2 '27 estimate $2.61 Q2 '27 actual $2.75, beat Q3 '27 estimate $2.74 Q4 '27 estimate $2.94
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Analyst Consensus ?

ConsensusHold78 ratings
Bullish3950.0%
Neutral3646.2%
Bearish33.8%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$186.14Previous close
$125Low
$224.26Average
$320High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 5, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Goldman Sachs Neutral NeutralMaintainAug 31, 2026
Wells Fargo Overweight OverweightMaintainAug 28, 2026
TD Cowen Hold HoldMaintainAug 28, 2026
Stifel Hold HoldMaintainAug 28, 2026
RBC Capital Outperform OutperformMaintainAug 28, 2026
Show 74 more rating actions

Named analyst price targets

Upside is calculated against the persisted previous close $186.14. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Goldman SachsAnalyst unavailable$164$198.08 -11.9%Aug 31, 2026
JefferiesBrent Thill$220$194.31 +18.2%Aug 28, 2026
D.A. DavidsonAnalyst unavailable$190$194.37 +2.1%Aug 28, 2026
BMO CapitalAnalyst unavailable$230$195.42 +23.6%Aug 28, 2026
Cantor FitzgeraldAnalyst unavailable$205$194.7 +10.1%Aug 28, 2026
See 167 more

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Company context

Snapshot as of publication

Workday, Inc. delivers comprehensive, cloud-hosted enterprise software solutions to clients worldwide. These platforms empower organizations to strategize, operate, examine performance, integrate with existing systems, and oversee their overall business functions. A core offering includes a robust suite of financial management tools. These are designed to assist Chief Financial Officers (CFOs) in meticulously maintaining general ledger accounting data, streamlining financial workflows, gaining instant insights into financial and operational metrics, optimizing consolidation, accelerating month-end closes, bolstering internal controls and audit readiness, and ensuring uniformity throughout their financial activities. Workday also provides cloud-based spend management solutions. These facilitate smoother supplier engagement and contract administration, optimize the handling of indirect expenditures, and enable the effective execution of sourcing initiatives, including requests for proposals (RFPs).…

Historical context

All WDAY earnings
+5.8%FY2027 Q2 · Calendar Q3 2026+5.2%FY2027 Q1 · Calendar Q2 2026+2.2%FY2026 Q4 · Calendar Q1 2026

Technology peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
ACN Accenture plc FY2026 Q4 · Calendar Q4 2026 +3.5% +15.8% Accenture: AI demand supports strong Q4, while pricing and geopolitics remain risks
JBL Jabil Inc. FY2026 Q4 · Calendar Q3 2026 +8.1% -10.0% Jabil enters FY2027 with AI-led growth and capacity risks
MU Micron Technology, Inc. FY2026 Q4 · Calendar Q3 2026 +5.4% +0.0% Micron: Strong AI Memory Demand, Higher Capex, and HBM4E Ahead
SNX TD Synnex Corp FY2026 Q3 · Calendar Q3 2026 +20.9% -9.9% TD SYNNEX: AI-led growth accelerates, but mix and cash flow matter
ADBE Adobe Inc. FY2026 Q3 · Calendar Q3 2026 +0.8% +1.4% Adobe raises FY26 outlook as AI strategy broadens
ORCL Oracle Corporation FY2027 Q1 · Calendar Q3 2026 +10.3% -1.7% Oracle raises FY27 outlook as AI demand accelerates cloud growth

Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-05T06:30:42.319564+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-05T06:30:42.316727+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-05. For educational purposes only; not investment advice.