Workday stock gains as software provider widens 2027 margin target

Workday’s stock soared by 14% following the release of its Q2 results. The software maker announced better-than-expected earnings and revealed plans to expand its adjusted operating margin until 2027. In terms of performance, Workday reported adjusted earnings per share of $1.75, surpassing the estimated $1.65. Additionally, its revenue reached $2.085 billion, beating the expected $2.071 billion. Workday witnessed a 17% annual increase in revenue and subscription revenue growth. The company’s finance chief expects an expanded adjusted operating margin of 30% in fiscal years 2026 and 2027, accompanied by 15% annual subscription revenue growth.