AI-extracted from the 10-Q filed 2026-08-27 — Q2 FY2027 (quarter ended July 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Total revenue rose 13% to $2,649M with subscription up 14% to $2,471M, while a $305M tax benefit from an intra-entity IP transfer lifted net income to $632M.
Biggest Revenue Drivers
Subscription services$2,471M+14% YoY
Approximately 60% of the increase came from expansion within existing customers and 40% from customers added after the prior year period
Professional services$178M-1% YoY
Remained relatively flat as we continued to expand and leverage our service providers
Biggest Revenue Drivers
Total revenue: $2,649M+13% YoY
Subscription services$2,471M+14% YoY
Approximately 60% of the increase came from expansion within existing customers and 40% from customers added after the prior year period
Within Subscription services
U.S.$1,967M
Other countries$682M
Professional services$178M-1% YoY
Remained relatively flat as we continued to expand and leverage our service providers
Largest Expense Items
Product development$747M+13% YoY
Increases of $71M in employee-related expenses and $22M in facilities and IT-related expenses
Sales and marketing$706M+10% YoY
Increases of $28M in employee-related expenses, $11M in amortization of deferred sales commissions, and $8M in marketing programs
Costs of subscription services$436M+18% YoY
Increases of $33M in third-party hosted infrastructure, $14M employee-related, and $9M in intangible amortization
General and administrative$231M+7% YoY
Included an increase of $8 million in employee-related expenses
Margins: GAAP operating margin expanded 124 bps to 11.8% and non-GAAP operating margin rose 212 bps to 31.1%, primarily due to revenue growth outpacing headcount growth and moderation of operating expenses.
Watch Items from the Filing
Deal scrutiny and lengthening sales cycles, particularly in net new opportunities and in government, higher education, and healthcare tied to federal funding.
Total subscription revenue backlog grew only 8% to $27.4B, trailing 13% revenue growth; 12-month backlog rose 14% to $9.0B.
Cash, cash equivalents, and marketable securities fell 37% to $3.4B after $2.9B of buybacks; $999M of 2027 Notes are now current debt.
Income tax benefit of $305M in the quarter stemmed from an intra-entity IP transfer recognizing $374M of deferred tax assets — a non-recurring boost to net income.
Defending a lawsuit alleging AI-related products enable discrimination; majority of claims dismissed, no material loss deemed reasonably possible.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Morris Rhonda JDirectorGrant or award · Jun 16, 2026
Yang JerryDirectorGrant or award · Jun 16, 2026
Centoni ElizabethDirectorGrant or award · Jun 16, 2026
Congress trading in WDAY
30 transactions in WDAY reported by 8 members of Congress under the STOCK Act, most recent trade Aug 18, 2026. Reported transactions, not recommendations.
About Workday, Inc. (WDAY): stock profile, AI score and financials
Workday, Inc. (WDAY) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores WDAY at 72.1/100 on a composite quality score built from its SEC filings, placing it at rank #163 of 2,925 stocks — the top 10% of the AI-ranked universe. WDAY scores in the top quartile across revenue scale (86.6), institutional flow (85.7), free cash flow (82.0). Shareholder dilution risk is elevated at 10.2/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2027), Workday, Inc. reports quarterly revenue of $2.6B, net income of $632.0M, an operating margin of 11.8%. Top institutional holders of WDAY by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, HOTCHKIS & WILEY CAPITAL MANAGEMENT, based on the most recent SEC filings. WDAY trades on the Nasdaq exchange and files with the SEC under CIK 1327811. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate WDAY daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Workday, Inc. directly from SEC EDGAR.