Workday (WDAY) earnings beat expectations but warn of challenges

Workday (WDAY) reported an earnings beat but warned of pressure in some areas, causing shares to slip (-3.90%) After hours. In Q2, revenue increased 13% to $2.35 billion, with net income rising to $228 million.

For the current quarter, Workday forecasts $2.42 billion in total revenue and an adjusted operating margin of 28.0%. CEO Carl Eschenbach highlighted challenges in working with state and local governments.

Despite facing pressure, Workday sees $9.52 billion in total revenue for the year. The company is acquiring Paradox, a AI company for recruiting, and introduced AI agents for HR and finance operations. Workday’s shares were down 12% this year, as Nasdaq is up 9%. President Trump’s executive order to shut down the Department of Education is affecting higher education funding.