Workday reported 17% Q2 subscription revenue growth, $1bn stock buyback, and 11% share price increase, but Q3 subscription revenue forecast fell below expectations due to fewer hirings and extended sales cycles.
Workday reported a 17% increase in Q2 fiscal 2025 subscription revenue growth, a 16% increase in 12-month backlog growth, and a non-GAAP operating margin of 25%. The technology company saw increased demand for payroll and HR solutions, particularly in the small-to-medium business segment, resulting in higher-than-expected Q2 revenue. This growth led to a $1bn stock buyback plan and an 11% increase in share price. However, the company's forecast for Q3 subscription revenue fell below expectations, with analysts attributing this to fewer hirings and anticipating longer sales cycles due to rising borrowing costs and inflation.
August 22, 2024
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