Workday(US:WDAY) Prnewswireยท2025-08-21 20:02Core Insights - Workday, Inc. reported total revenues of $2.348 billion for the fiscal second quarter of 2026, reflecting a year-over-year increase of 12.6% [1][6] - Subscription revenues reached $2.169 billion, marking a 14.0% increase compared to the same period last year [1][6] - The company has raised its fiscal 2026 subscription revenue guidance to $8.815 billion, indicating a growth of 14% [4] Financial Performance - Operating income for the second quarter was $248 million, representing 10.6% of total revenues, compared to $111 million (5.3% of revenues) in the same quarter of the previous year [6] - Non-GAAP operating income was $680 million, or 29.0% of revenues, up from $518 million (24.9% of revenues) year-over-year [6][21] - Diluted net income per share increased to $0.84 from $0.49 in the same quarter last year, while non-GAAP diluted net income per share rose to $2.21 from $1.75 [6][21] Subscription Backlog - The 12-month subscription revenue backlog stood at $7.91 billion, a 16.4% increase year-over-year [6] - Total subscription revenue backlog reached $25.37 billion, reflecting a 17.6% growth compared to the previous year [6] Cash Flow and Share Repurchase - Operating cash flows were $616 million, compared to $571 million in the same period last year [6] - Free cash flows amounted to $588 million, up from $516 million year-over-year [6] - The company repurchased approximately 1.2 million shares of Class A common stock for $299 million as part of its share repurchase program [6] Strategic Initiatives - Workday's growth is attributed to its AI and platform innovation, as well as international momentum and an expanding ecosystem [4] - The acquisition of Paradox is expected to contribute positively to the company's growth initiatives [4]