Workday Set to Report Q2 Results: Will Revenue Growth Boost Earnings?

Workday, Inc. WDAY is set to release second-quarter fiscal 2026 results on Aug. 21, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 9.75%, while in the last reported quarter, it delivered an earnings surprise of 12.06%.Based in Pleasanton, CA, WDAY is expected to have recorded higher revenues on the back of solid demand for its human capital management and financial management solutions across different end markets. A strong focus on AI integration across the portfolio is a positive.Factors at PlayDuring the quarter, Workday launched a powerful expansion of its AI-driven capabilities with a new wave of Illuminate Agents, designed to significantly enhance productivity across Human Resource Management and finance functions. Built on the company’s industry-leading foundation of responsible AI, these purpose-built agents aim to enhance productivity and enable smarter, faster decision-making through a contextual understanding of business data.The company also rolled out a new unified AI developer toolset. The toolset is designed to empower developers to easily customize, configure and connect AI apps and agents on the Workday platform. The solution also includes AI Developer Copilot, a conversational AI companion that helps developers code faster. Such initiatives are expected to have boosted Workday’s commercial prospects.During the quarter, Seattle University has opted to deploy Workday HCM, Financial Management and Workday Student solutions in its operations. Its aim is to unify HR, finance, and student information systems into the Workday cloud platform and streamline everyday tasks for the entire campus community. This is likely to have a favorable impact on third-quarter earnings.Our estimate for Subscription Services revenues is pegged at $2.16 billion, suggesting 13.5% year-over-year growth. Our estimate for Professional Services revenues is pegged at $180 million.For the July quarter, the Zacks Consensus Estimate for revenues is pegged at $2.34 billion, suggesting an increase from the year-ago quarter’s reported figure of $2.09 billion. The consensus estimate for adjusted earnings per share is pegged at $2.09, indicating an increase from $1.75 reported in the prior year.Earnings Whispers for Workday StockOur proven model does not conclusively predict an earnings beat for Workday for the fiscal second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here.WDAY’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.99. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Workday, Inc. Price and EPS Surprise Workday, Inc. price-eps-surprise | Workday, Inc. QuoteZacks Rank: Workday currently carries a Zacks Rank #3.Stocks to ConsiderHere are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:Electromed, Inc. ELMD is set to release quarterly numbers on Aug. 26. It has an Earnings ESP of +2.33% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Gap GAP is scheduled to report quarterly numbers on Aug. 28. It has an Earnings ESP of +1.52% and currently carries a Zacks Rank of 3.Walmart WMT is set to release quarterly numbers on Aug. 21. It currently has an Earnings ESP of +1.26% and a Zacks Rank #2.See our %%CTA_TEXT%% report – free today!7 Best Stocks for the Next 30 DaysWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report Electromed, Inc. (ELMD): Free Stock Analysis Report The Gap, Inc. (GAP): Free Stock Analysis Report Workday, Inc. (WDAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks