Workday reports a revenue increase of nearly thirteen percent for the second quarter of fiscal year 2027, driven by subscription growth and the deployment of AI agents.
Workday, a human capital management software company, announced its financial results for the second quarter of fiscal year 2027. Total revenue was $2.649 billion, an increase of 12.8 percent compared to last year. Subscription revenue rose by 13.9 percent to $2.471 billion.
The company says it is making solid progress with its AI approach. More than 5,500 customers now use at least one of Workday’s proprietary AI agents, an increase of more than 35 percent quarter-over-quarter.
Earlier this year, Workday laid off two percent of its workforce to focus on “top priorities,” according to the company at the time. Last year, 1,750 employees also had to give up their positions to AI.
Earnings in figures
Operating income was $313 million, representing 11.8 percent of revenue. This is higher than the $248 million or 10.6 percent a year earlier. Non-GAAP operating income was $824 million, accounting for 31.1 percent of revenue. Diluted net income per share rose sharply to $2.57, aided by a tax benefit of $1.52 per share.
Workday has $3.4 billion in cash and cash equivalents. Operating cash flow was $520 million, lower than last year. $1.3 billion in treasury shares were repurchased. The twelve-month subscription revenue backlog grew by 14.2 percent to $9.034 billion.
AI as a growth engine
“We have just completed a strong second quarter, where AI accounted for more than 25 percent of our new ACV and more than 5,500 customers are now using at least one of our organic agents,” said Aneel Bhusri, co-founder, CEO, and chairman of Workday.
The company recently introduced the Developer Agent and Agent Passport for building and validating AI agents, as well as new AI features such as Adaptive Decision Intelligence and the Financial Audit Agent.
Workday Learning, powered by Sana, became generally available, as did new integrations with AWS and an expansion of the partnership with Google Cloud. Workday’s research department published initial results on making AI agents more reliable for enterprises.