Workday Beats Q2 Estimates but Cuts FY27 Revenue Guidance

Workday Inc reported strong fiscal second-quarter results on Thursday but lowered its fiscal 2027 sales guidance.

Workday posted quarterly earnings per share of $2.75, beating the analyst consensus estimate of $2.61. The company reported quarterly sales of $2.649 billion, surpassing the analyst consensus estimate of $2.636 billion.

Workday cut its fiscal 2027 sales guidance to $9.940 billion-$9.950 billion, down from $10.635 billion-$10.660 billion.

"Workday delivered a strong second quarter, with AI driving over 25% of our new annual contract value, and more than 5,500 customers now using at least one of our AI agents," said Aneel Bhusri, co-founder, CEO, and chairman of Workday. "With Workday's deterministic architecture, customers can trust our agents to handle critical work, and that is showing up in the data."

Workday shares rose 0.1% to $193.75 in pre-market trading.

Following the earnings release, analysts adjusted their price targets for Workday.

Piper Sandler analyst Billy Fitzsimmons maintained a Neutral rating on the stock and raised the price target from $145 to $190.

Needham analyst Scott Berg maintained a Buy rating on the stock and raised the price target from $180 to $230.

Morgan Stanley analyst Keith Weiss maintained an Underweight rating on the stock and raised the price target from $145 to $180.

Cantor Fitzgerald analyst Matthew Vanvliet maintained an Overweight rating on the stock and lowered the price target from $220 to $205.

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