Executive Summary
Workday Inc delivered a solid QQ2 2026 performance with sustained top‑line momentum and healthy profitability metrics, underpinned by its high‑margin SaaS model. Revenue of $2.348 billion marked a 12.6% year‑over‑year increase and a 5.2% quarter‑over‑quarter uptick, while gross margin remained exceptionally durable at approximately 84.2%. Operating income reached $248 million, yielding an operating margin of about 10.6%, and net income came in at $228 million, with earnings per share (GAAP) of $0.86 and diluted EPS of $0.84. Free cash flow stood at $588 million, strengthening the balance sheet and supporting shareholder returns through stock buybacks and modest equity issuance.
Key Performance Indicators
QoQ: 21.57% | YoY:123.42%
QoQ: 235.29% | YoY:72.73%
QoQ: 230.77% | YoY:72.00%
Key Insights
Revenue: $2.348B; YoY +12.6%; QoQ +5.2%. Gross Profit: $1.978B; Gross Margin 84.24%; YoY +25.7%; QoQ +16.7%. Operating Income: $248M; Operating Margin 10.56%; YoY +123.4%; QoQ +21.6%. Net Income: $228M; Net Margin 9.71%; YoY +72.7%; QoQ +235.3%. EPS (GAAP): $0.86; Diluted EPS: $0.84; YoY +72.0%; QoQ +230.8%....
Financial Highlights
Revenue: $2.348B; YoY +12.6%; QoQ +5.2%. Gross Profit: $1.978B; Gross Margin 84.24%; YoY +25.7%; QoQ +16.7%. Operating Income: $248M; Operating Margin 10.56%; YoY +123.4%; QoQ +21.6%. Net Income: $228M; Net Margin 9.71%; YoY +72.7%; QoQ +235.3%. EPS (GAAP): $0.86; Diluted EPS: $0.84; YoY +72.0%; QoQ +230.8%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.35B |
12.61% |
5.20% |
| Gross Profit |
1.98B |
25.67% |
16.70% |
| Operating Income |
248.00M |
123.42% |
21.57% |
| Net Income |
228.00M |
72.73% |
235.29% |
| EPS |
0.86 |
72.00% |
230.77% |
Management Commentary
Transcript data not provided in the supplied material. As a result, key themes, management commentary, and quotable statements from the QQ2 2026 earnings call could not be extracted. If the transcript is supplied, a thematically grouped synthesis (strategy, product/technology, customer momentum, and market conditions) with direct quotes will be added.
Forward Guidance
No forward‑looking guidance was included in the provided data. As such, the assessment relies on trailing performance and the degree to which Workday’s SaaS model and backlog (deferred revenue) may translate into sustained growth and margins. Should management publish targets or cadence for ARR growth, customer retention, or vertical expansion (planning, HCM, analytics), those would be incorporated to judge achievability. Investors should monitor: (1) trajectory of deferred revenue and ARR growth, (2) retention/expansion metrics (net revenue retention, upsell velocity in planning and analytics), (3) operating expense discipline relative to revenue scale, and (4) mix of professional services vs. subscription revenue as it relates to profitability.