Recent Updates — WDAY

Workday announced a workforce reduction of approximately 2.5% of its current employees, primarily within the Product and Technology team, alongside select leased office space reductions to align with strategic growth priorities. The company estimates it will incur $65 million to $80 million in charges related to these exit activities, including severance, stock-based compensation, and lease impairments. Approximately $55 million to $70 million of these costs are expected to be recognized in the third quarter of fiscal 2027, with the remaining $10 million in the fourth quarter. Workday also revised its fiscal 2027 GAAP operating margin guidance downward by approximately 20 percentage points for Q3 and 19 percentage points for the full year due to these charges. The company operates in the enterprise software industry, providing cloud-based financial management and human capital management applications.

Workday, Inc. reported fiscal 2027 second quarter results ending July 31, 2026, with total revenues of $2.649 billion, a 12.8% increase year-over-year, and diluted net income per share of $2.57. The company announced that its Board authorized an open-ended share repurchase program for up to $4.0 billion of Class A common stock. Workday updated its full-year fiscal 2027 guidance, projecting subscription revenues between $9.940 billion and $9.950 billion (13% growth) and a non-GAAP operating margin of 31.0%. The enterprise AI platform provider for HR, finance, and IT operates in the software industry.