Workday’s second-quarter performance showcased its strength in customer adoption, AI-driven innovation, and platform expansion. Subscription revenue increased by 14% year over year to $2.17 billion, with total revenue up by 12.6% to $2.4 billion. Adjusted earnings also rose by 26.3% to $2.21 per share.

The company’s total subscription revenue backlog is at $25.37 billion, with current RPO at $7.91 billion. Workday has cash and marketable securities totaling $8.2 billion and repurchased $299 million in stock. Workday’s strategy in India and focus on AI and unified finance and HR platform positions it well for growth.

Workday plans to scale AI innovation, boost global reach, and drive full-suite adoption in the second half of the year. The company raised its full-year fiscal 2026 guidance, aiming for a 14% increase in subscription revenue to $8.8 billion. CEO Carl Eschenbach emphasized the importance of AI in unlocking human potential.

Analysts have mixed views on Workday, with Citi lowering the target price to $260, Canaccord to $275, and maintaining a “Buy” rating. Bank of America Securities remains positive, citing a favorable risk-reward scenario. Overall, Wall Street analysts rate Workday stock as a “Moderate Buy,” with an average target price of $291.82 suggesting a potential 30% rally.

Read more at Yahoo Finance: Wall Street Sees 53% Upside in Workday Stock. Is WDAY a Buy Now?