"Workday empowers businesses to increase productivity, deliver incredible employee experience, and drive greater efficiencies across finance."
— Carl Eschenbach, CEO
03Detailed Report
WDAY
Workday Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
In Q2 2025, Workday Inc. achieved notable financial growth, with total revenue reaching $2.085 billion, reflecting a 17% increase year-over-year. Subscription revenue specifically grew by 17%, signaling robust demand for Workday's cloud-based enterprise applications. Despite facing challenges such as deal scrutiny and moderated headcount growth within its customer base, Workday reported a strong non-GAAP operating margin of 24.9%, underscoring its commitment to profitability while expanding its customer base. Management emphasized their dedication to driving efficiencies and growth, particularly in the AI and financials sectors, reinforcing their competitive positioning in the marketplace.
Balance Sheet Metrics:
- Cash and Marketable Securities: $7.4 billion
- Total Assets: $16.234 billion
- Total Liabilities: $7.889 billion
- Total Equity: $8.345 billion
Cash Flow:
- Operating Cash Flow: $571 million (YoY: +34%)
- Free Cash Flow: $516 million
Management forecasts subscription revenue growth guidance of approximately 17% for FY 2025 and is optimistic about maintaining this trajectory heading into FY 2026, supported by a strong backlog of $21.58 billion
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.09B
16.69%
5.20%
Gross Profit
1.57B
17.58%
5.28%
Operating Income
111.00M
206.15%
91.38%
Net Income
132.00M
67.09%
23.36%
EPS
0.50
66.67%
25.00%
Key Financial Ratios
Gross Profit Margin
Excellent
75.50%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Fair
5.32%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
6.33%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.81%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.58%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.99
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.40
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
High Growth
114.13x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
7.22x
Very high premium suggests asset-light business model or lofty expectations
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