Workday, a maker of workplace management software, reported a measure of future sales that fell short of analysts’ projections, blunting recent momentum from Wall Street’s renewed enthusiasm for the software sector.

WORKDAY $WDAY Q2’27 EARNINGS HIGHLIGHTS 🔹 Revenue: $2.65B (Est. $2.64B) 🟢; +12.8% YoY 🔹 Adj. EPS: $2.75 (Est. $2.61) 🟢; +24% YoY 🔹 Free Cash Flow: $460M (Est. $621M) 🔴; -22% YoY 🔹 12-Month Subscription Revenue Backlog: $9.03B; +14.2% YoY Q3 Guide: 🔹 Subscription Revenue: $2.52B; +12% YoY 🔹 Non-GAAP Operating Margin: 30.0% FY Guide: 🔹 Subscription Revenue: $9.94B-$9.95B; +13% YoY 🔹 Non-GAAP Oper Margin: 31.0%; increasing guidance Segment Net Revenue: 🔹 Subscription Revenue: $2.47B; +13.9% YoY Other Q2 Metrics: 🔹 Net Income: $632M (Est. $665M) 🔴 🔹 Non-GAAP Operating Margin: 31.1%; +210 bps YoY Comments: 🔸 “AI driving more than 25% of our new ACV and more than 5,500 customers now using at least one of our organic agents.” 🔸 “We now expect fiscal 2027 subscription revenue of $9.940 billion to $9.950 billion, growth of 13%, while increasing our fiscal 2027 non-GAAP operating margin guidance to 31.0%.”

WORKDAY $WDAY JUST REPORTED Q2 EARNINGS - Revenue: $2.65B, beating est. of $2.64B 🟢 - Adj EPS: $2.75, beating est. of $2.61 🟢 - Free Cash Flow: $460M, missing est. of $621M 🔴 - 12-Month Subscription Revenue Backlog: $9.03B (+14.2% YoY) - Subscription Revenue: $2.47B (+13.9% YoY) - Net Income: $632M, missing est. of $665M 🔴 Q3 Guidance: - Subscription Revenue: $2.52B - Non-GAAP Operating Margin: 30.0% FY Guidance: - Subscription Revenue: $9.94B-$9.95B - Non-GAAP Oper Margin: 31.0%