Workday (WDAY) Q2 FY27 earnings
Revenue $2.6B, up 13% from a year ago. Net income $632M.
Workday's net income of $632M includes a $305M tax benefit tied to an intra-entity transfer of intellectual property. Revenue grew 13% to $2.6B, with the U.S. at 74% of it.
Subscription services: $1.8B in FY18 to $8.8B in FY26.
The face line itself, from nine 10-Ks: subscription revenue plus professional services equals total revenue to the dollar in every year drawn.
Total subscription revenue backlog: $5.2B at FY18 year-end to $28.1B at FY26.
The filer's own metric from each year's 10-K revenue note — contracted subscription work not yet recognized as revenue, an as-of balance rather than a year's sales. It has since fallen: $27.4B at July 31, 2026 in the latest 10-Q.
Where the revenue came from
| Segment | Amount | % of revenue | Y/Y |
|---|---|---|---|
| U.S. | $2.0B | 74.3% | +12% |
| Other countries | $682M | 25.7% | +17% |
Income statement, line by line
| Line | Amount | % of revenue | Y/Y |
|---|---|---|---|
| Revenue | $2.6B | +13% | |
| Cost of revenue † | $652M | 24.6% | +12% |
| Gross profit † | $2.0B | 75.4% | +13% |
| Operating expenses † | $1.7B | 63.6% | +11% |
| Operating income | $313M | 11.8% | +26% |
| Pretax income | $327M | 12.3% | +8% |
| Income tax | -$305M | -11.5% | -501% |
| Net income | $632M | 23.9% | +177% |
— means the filing states no comparable prior-year figure for that line, so we do not compute one.
Effective tax rate: -93.3%. That is tax as a share of pretax income. The -11.5% in the column above is tax as a share of revenue, which is not a tax rate.
† The filing doesn't print this line. We calculated it from the filed figures; it adds up to the dollar.
The last 8 quarters
| Quarter ended | Revenue | Net income | Net margin |
|---|---|---|---|
| Jul 31, 2026 | $2.6B | $632M | 23.9% |
| Apr 30, 2026 | $2.5B | $222M | 8.7% |
| Oct 31, 2025 | $2.4B | $252M | 10.4% |
| Jul 31, 2025 | $2.3B | $228M | 9.7% |
| Apr 30, 2025 | $2.2B | $68M | 3.0% |
| Apr 30, 2024 | $2.0B | $107M | 5.4% |
| Jan 31, 2024 | $1.9B | $1.2B | 61.8% |
| Oct 31, 2023 | $1.9B | $114M | 6.1% |
Held by tracked 13F managers
WORKDAY INC (CL A): 7 of 69 tracked managers reported holding it — $2,883M across tracked reports, as filed.
13F reports arrive up to 45 days after quarter end and may be amended; totals sum across tracked reports, not unique economic ownership.
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