Overview

• Adjusted earnings came in at $2.21 per share on revenue of $2.35 billion, beating LSEG consensus, as net income rose to $228 million from $132 million a year earlier.
• Subscription revenue increased 14% to $2.17 billion, and the 12-month subscription backlog reached $7.91 billion, up 16.4% year over year.
• The company raised its fiscal 2026 subscription revenue target to $8.82 billion, while guiding third-quarter subscription revenue to $2.24 billion with total revenue implied at $2.42 billion and an adjusted operating margin of about 28%.
• Workday announced a deal to acquire Paradox, adding conversational AI recruiting tools, and highlighted new AI agents for extracting accounting details from documents and reporting absent days.
• CEO Carl Eschenbach cited funding pressures for state and local governments and some U.S. higher-education customers, and the stock fell in extended trading after the release.