Workday Q2 Revenue Beat; Shares Fall

Workday reported second-quarter revenue of about $2.65 billion, up 12.8% year over year, with non-GAAP earnings of $2.75 per share and a GAAP profit of $632 million. The company highlighted AI-driven growth, noting more than 25% of new annual contract value came from AI-enabled offerings and that over 5,500 customers are using at least one organic AI agent. Analysts’ expectations were broadly met, with revenue in line with consensus and adjusted earnings of $2.75 per share. Long-term growth signals show some deceleration, as the five-year CAGR sits around 16.8% and the two-year growth rate has cooled to about 13.6%, prompting cautious assessment of the software sector’s momentum. Outlook remains constructive, with subscription revenue guidance around $9.94 to $9.95 billion for the year, reflecting continued expansion in recurring revenue. Market coverage across sources confirmed the results and underscored AI’s role in Wo rday’s performance.