With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Resilience and the capacity for reinvention have never been more important.

Future 50-2021-Workday

The Future 50

This year’s Fortune 500 marks the 67th running of the list.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

Our 2020 list of the 100 best companies as ranked by their employees. See which companies made the list.

Fortune 100 Best Companies to Work For

This year's list of best workplaces in technology value people, not just as employees, but as humans.

Best Large Workplaces in Technology 2020-Workday

Employees say: 
“Culture, from the top down, is awesome. Executives through individual contributors mean what they say and say what they mean. Everyone is given ample opportunities and is encouraged to explore roles and take training that are of interest to them.” 
Read Great Place to Work review .

Best Large Workplaces in Technology

The 35 companies highlighted on this year's list promote growth, transparency, and diversity in the workplace.

Workday_Best Large Workplaces Bay Area 2020

Employees say: 
 
"The firm shows respect and appreciation for everyone regardless of "level" or "status." it's a place that cares very much about creating a culture of belonging and shared contributions and investments." 
 
Read Great Place to Work review .

Best Large Workplaces in the Bay Area

Explore this year's ranking of the 50 companies with the best long-term growth potential.

Future 50-2020-Workday

A dominant force in cloud-based programs for HR management and financial planning, Workday’s reach belies its size. Though it brought in a relatively modest $3.6 billion in revenue in 2019, its customers employ some 45 million people worldwide. Workday’s sales rose 29% last year, and analysts anticipate continued growth as the company expands its suite of tools. Another promising project: helping corporate clients take part in “talent marketplaces” that connect displaced workers with new positions.

This year's Fortune 500 marks the 66th running of the list.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

Our 2019 list of the 100 best companies as ranked by their employees. See which companies made the list.

Companies on this year's list earned national recognition in at least five different countries worldwide—and as many as 33 countries.

World's Best Companies 2019-Workday

World’s 25 Best Workplaces

Fortune's proprietary methodology allows us to zero in on the 50 global firms that are best poised to deliver—and continue delivering—above average gains.

At the Best Workplaces for Women, company leaders foster mentorship and career growth.

Workday-Best Large Workplaces for Women 2019

An employee says: 
 
"It's the first company I've worked at where I feel senior leadership acts with integrity and I trust them to make the right decision. I'm also extremely proud of the number of women in leadership roles, especially where they're not always found." 
 
Read the Great Place to Work review .

100 Best Large Workplaces for Women

This year's Fortune 500 marks the 65th running of the list.

We surveyed tens of thousands of young employees to create this list of millennials’ favorite workplaces.

Workday-best workplaces millennials 2019

Employees say: 
“Workday is invested in growing young talent and helping you find the career path that you love. I've moved departments and teams multiple times since I've been here and I've had a say in what i'm interested in all long the way.”

100 Best Large Workplaces for Millennials

Our 2018 list of the 100 best companies as ranked by their employees. See which companies made the list.

Welcome to the inaugural Fortune Future 50, our new ranking of companies best positioned for breakout growth.

This year's Fortune 500 marks the 64th running of the list.

Best Large Workplaces for Women 2018-Workday

Employees say: 
 
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"Workday takes its commitment to employees seriously. For instance, through internal discussions about how Workday can be a leading employer for women, they unrolled a new paid parental leave policy that far outstrips what most U.S. employers offer." 
 
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Read the Great Place to Work review .

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Employees say: 
 
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"It’s incredibly atypical for an organization of this size to have such a high-trust environment and be able to sustain it. There is a mentality that 'we didn't hire smart people to tell them exactly what to do' I so appreciate." 
 
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"The lights in the building are on a timer that goes off at 6pm, which I have always found to be so incredible. At my previous job at a major tech company, 6pm was what 3 or 4pm here is and the auto-shut off happened at 8:30pm. If I'm ever working late, I'm always so encouraged when those lights go off at 6pm because it feels like Workday as a whole is reminding me that its time to leave--reiterating the importance of work-life balance and ensuring I'm not burning out. I think that small action of a self-timed light panel has made such a massive impact on my perception of this company and how it cares for its employees." 
 
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Our 2017 list of the 100 best companies as ranked by their employees. See which companies made the list.

Fortune’s annual list of the 100 Best Workplaces for Women highlights companies with generous benefits, flexible schedules, and an emphasis on balancing work and life. 

Best Workplaces in the Bay Area 2017- Workday

Employees say: "We are truly a 'team'—anyone here will drop what they are working on to help you, and people share information willingly. We all have a common goal of providing the best product with the best service; everyone here lives and breathes that common goal." 
 
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"Individual accomplishments are encouraged and rewarded, but then the sharing of those ideas is a consistent part of the culture. With this approach, I feel that I am appreciated for new thoughts and ideas while not feeling the need to protect my IP." Read the .

best workplaces for millennials 2017 Workday

Employees say: 
 
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"I came to Workday on the technology side from a non-traditional background, expecting to meet resistance and challenges given my past experience. But, I was met with the exact opposite. My coworkers are ultra supportive and open, will drop everything at any given time to answer questions or brainstorm solutions, and constantly motivate me to keep learning. Everyone is passionate about their work and my manager takes a very active role in ensuring my continued success and development. When I come into the office, I just feel happy and thankful to be here. The mood is very cheerful and yet focused and determined on delivering quality products. I consider my coworkers to be my friends. I can't imagine working anywhere else." 
 
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"I have been given opportunities and promotions based solely on my performance and merits and potential, despite the fact that I do not have a lot of experience. At Workday, if you prove you can do the job, you'll be given the chance in most cases even if you aren't the smartest, most educated, or most experienced person on the team. They will pick the person they truly think is best for the project or role, not the person who thinks they deserve it because they've been here the longest. It's been a great thing for me. I've been able to achieve a lot very quickly, which keeps me motivated to keep achieving." 
 
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Google/Alphabet is the No. 1 place to work for the seventh time in 10 years. Six newcomers include Veterans United at No. 30, Hilton Hotels at No. 56, and Slalom Consulting at No. 100. IKEA’s U.S. arm returns to the list, along with GoDaddy and Sheetz.

Fortune’s second annual list of the 100 Best Workplaces for Women highlights companies with generous benefits, flexible schedules, and an emphasis on balancing work and life. 

100 best workplaces for women 2016- workday

Employees say: 
&nbsp; 
"This is THE best company I have ever worked for. They are always thinking of employees and what is right. They really try to make a day at Workday not your ordinary workday. From bringing your dogs to summertime Monday Fundays with a variety of outdoor activities, to all of the events for employees and their families like Bring Your Kids, Bring Your Parents, Bring Your Teens and our company picnic. This year it was a carnival, and I have never seen so many smiling happy faces. I have never worked for a company that is so generous." 
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"Workday is fun, energetic company to work for—very dynamic in a constant state of positive change to create improvements. The company supports autonomy and empowers you to lead, make, and own your decisions." 
&nbsp; 
Read the Great Place to Work review .

The second annual ranking of the best employers for workers 35 and under.

best workplaces for millennials 2016- Workday

"The sense of community at Workday is amazing. Whether it be seasoned developers or fresh out of college young professionals, we all collaborate at a pace that works for everyone. The playing field is flat and allows new developers to work with experienced developers without feeling out of place. I feel my team and my manager are truly dedicated to helping one another individually and collectively to accomplish our goals with time to spare—which usually goes towards something fun!" says one millennial employee. 
 
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Says another millennial: "The company puts a large emphasis on fun and flexibility. I have an amazing work life balance. I can spend time with my family and pursue other goals and ambitions outside of work. I have a lot of autonomy in my work so I don't have to be tied to my office 10 hours every day. As a young person work life balance is very important to me, and I feel blessed to have this privilege working at Workday." 
 
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Read the .

This year’s list marks Fortune's 18th year of partnering with Great Place to Work. Google ranks No.1 for the sixth time, and 16 new companies make impressive debuts, including Acuity (No. 3), Twitter (No. 24), and Riot Games (No. 13).

The inaugural list of the 100 Best Workplaces for Women from our partners at Great Place to Work includes the wealth management firm TrueWealth at No.1, hospital system Texas Health Resources (No. 3), and Build-A-Bear Workshop (No. 10). Rankings were determined by employee surveys and the representation of women within the organizations.

BEST COMPANIES 2015  Workday

HR tech services company Workday has over 3,000 employees, of which 37% are women. Nearly 40% of executive titles are held women, while 46% of management positions belong to women, too. "Workday is a special place," one employee said. "Our products are technologically superior, our executive team members are seasoned veterans, our colleagues are extremely competent and our corporate culture is one of high ethics and extraordinary fun." .

The inaugural list of the 100 Best Workplaces for Millennials from our partners at Great Place to Work includes surprising newcomer Power Home Remodeling, making an impressive debut at No. 1. Other standouts include Chili’s Grill and Bar (no. 11), Elevation Church (No. 34), and Yelp (No. 41).

Workday, founded by a co-founder of PeopleSoft, offers its employees (called “workmates”) no annual limit on time off, as well as the opportunity to participate in a work exchange program that would send them to Dublin or Munich. This maker of cloud-based human resources software has made sure its own humans are happy. <a style="color:#ff0000;" href="http://us.greatrated.com/workday">Read the Great Place to Work review.</a>

Perks

100% health coverage

Unlimited sick days

Telecommuting

Job sharing

Subsidized childcare

Compressed work weeks

Fully-paid sabbaticals

On-site fitness/subsidized gym

On-site medical care facility

Non-discrimination policy includes sexual orientation

Health insurance for part-timers

Sick days for part-timers

College tuition reimbursement

Student loan debt repayment

Medical facility at all locations

Paid Time Off

# Sick days

Compensation

Most common job (for salaried employee)

Hiring/staffing (past 12 Months)

Full-time and part-time job growth

# of job applicants

Avg. # of applicants per opening

# New graduates hired

Company Info

Industry

Founded

HQ Location

Sites

Worldwide Employees

Worldwide Revenue

Last Year Rank

Web Address

Date info provided (companies may opt to keep some data confidential)

Millennials In The Organization

# of millennial employees

Millennials as % of total workforce

Women In The Organization

% of Women in Management (non-Executive)

% of Women in Executive/Manager Positions

Future 50

Overall Score

Sector

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Strongest Dimension

Years on list

Previous rank

State

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Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

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Total Return to Investors (last year)

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Workday provides software that helps organizations manage financial operations, human capital, spending, and expenses, along with tools for workforce planning, reporting, and automation. Founded in 2005 and headquartered in Pleasanton, Calif., the company also offers industry-specific solutions for health care, education, and government, as well as developer tools like Workday Extend and AI features through Workday Illuminate.

Q2 2027

Q1 2027

Q4 2026

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Workday (WDAY): Company Profile, Stock Price, News, Rankings

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Workday

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Welcome to Workday's Second Quarter Fiscal Year twenty twenty six Earnings Call. At this time, all participants are in a listen only mode. We will conduct a question and answer session toward the end of the call. During the Q and A, please limit your questions to one. I will now hand it over to Justin Furby, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Welcome to Workday's second quarter fiscal twenty twenty six earnings conference call. On the call, we have Karl Eschenbach, our CEO Zane Rowe, our CFO and Garrett Katzmeier, our President, Product and Technology. Following prepared remarks, we will take questions. Our press release was issued after close of market and is posted on our website where this call is being simultaneously webcast.

Before we get started, we want to emphasize that some of our statements on this call, particularly our guidance, are based on the information we have as of today and include forward looking statements regarding our financial results, applications, customer demand, operations, and other matters. These statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. Please refer to the press release and the risk factors and documents we file with the Securities and Exchange Commission, including our fiscal twenty twenty five annual report on Form 10 ks, for additional information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, during today's call, we will discuss non GAAP financial measures, which we believe are useful as supplemental measures of Workday's performance. These non GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.

You can find additional disclosures regarding these non GAAP measures, including reconciliations with comparable GAAP results, in our earnings press release, in our investor presentation and on the Investor Relations page of our website. The webcast replay of this call will be available for the next ninety days on our company website under the Investor Relations link. Additionally, a copy of the prepared remarks and our quarterly investor presentation will be posted on our Investor Relations website following this call. Our third quarter fiscal twenty twenty six quiet period begins on 10/15/2025. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal twenty twenty five.

With that, I will hand the call over to Carl.

Thank you, Justin, and thank you all for joining us today. Workday delivered another solid quarter with 14% subscription revenue growth and non GAAP operating margin of 29%. We built great momentum in Q1, and we kept it going in Q2 with strong customer adoption across key verticals, geographies and segments. Customer engagement with Workday has never been higher. Our Customer Experience Center in Pleasanton is absolutely buzzing.

In fact, I feel like I'm living there lately. To keep up with all the demand, we are opening new CXCs in both New York and London. Customers are choosing Workday because we help them unlock value today and we prepare them for whatever's next, whether that's navigating AI transformation, streamlining operations, or creating more meaningful work for their people. That's where the Workday platform gives them the ultimate advantage. We help manage and optimize their most critical assets, their people and their money, on one platform with AI at the core.

This unified approach reduces total cost of ownership and helps them move faster with greater precision. And our AI value proposition is highly relevant in today's market. Workday Illuminate is fueled by the largest and cleanest finance and HR dataset. With more than 75,000,000 users under contract and a trillion transactions processed last year alone, Workday has a deep understanding of how people work and how to make work better. This ability to deliver real differentiated value is what drove our customer momentum in Q2.

Now let's talk about our customer highlights. In Q2, we formed new HCM relationships with Carrefour, Memorial Health, Smurfit WestRock and Bannamex. We also had impressive expansions with Sanofi, Blue Origin, and Google. We are proud to serve more than 65% of the Fortune 500, but what's even more exciting is to see the traction we're seeing in the emerging and medium enterprise, driven by the launch of Workday Go in Q1. Our focus on financials continues to fuel demand for our full suite.

This quarter, roughly 30% of our net new deals were full suite, with that number rising to 50% or more in industries like SLED and healthcare. Redcoats, Michaels and U. S. Physical Therapy were just a few of our full suite wins in the quarter. Beyond the wins, we also celebrate go lives.

Salesforce, a longtime HCM customer, went live on Workday Financial Management and Accounting Center in the quarter. They're all in on Workday. By unifying their HR and financial data on our platform, they're getting entirely new insights about their business to support their innovation and growth. We also add full suite go lives with Advocate Health, HonorHealth, and University of Melbourne. I mentioned earlier in the call that AI is front and center in nearly every customer conversation.

More than 30% of our customer based deals and more than 75% of our net new deals included one or more of our AI products, such as Talent Optimization, Recruiting Agent, Talent Mobility Agent, Contract Intelligence Agent powered by Eversource and XtendPro, And net new ACV from our AI products once again more than doubled year over year. We had fantastic AI wins at Trinity Health, Chipotle, and Cox Health, just to name a few. Now let's talk about industries. Financial services had a standout quarter with an expansion at Nationwide Insurance, which added Core Financials and wins with Guaranteed Rate, Handelsbachen and Miller Insurance Services. In SLED, we had our first state go live on financial management in Q2 with the state of Rhode Island.

And we had a huge competitive win at the University of Virginia and UVA Health, an academic health system that includes a medical center, the School of Medicine, and a network of community hospitals throughout Virginia. We also continue to expand our work with the U. S. Federal Government, where our engagement across the Department of Defense, the intelligence community, and civilian agencies has never been stronger. In Q2, we launched Workday Government, a wholly owned subsidiary dedicated to serving the unique needs of the U.

S. Government. With this sector facing a once in a generation opportunity to modernize its aging infrastructure, our value proposition has never been more relevant. By combining our proven platform, AI leadership, and deep commitment to public service, we're poised to deliver real impact for millions of government workers while also unlocking meaningful long term growth for Workday. And with the government leaning heavily into AI, we see tremendous opportunity ahead for many years to come.

And finally, as we shared last quarter, our Tech and Media industry crossed $1,000,000,000 in ARR and that team followed it up with another strong quarter here in Q2. Turning to innovation, our roadmap is focused on delivering purpose built AI solutions for HR and finance that drives tangible business value and real ROI. And more than 70% of our core customers are now leveraging Workday Illuminate. In May, we announced new agents that leverage our unmatched dataset to help customers amplify talent, reduce cost, accelerate decision making, and mitigate risk. And at Workday Rising in a few weeks, we will unveil exciting AI and platform innovations, partnerships, and new ways to make it easier for customers to access and get value from our AI solutions.

While we continue to invest heavily in organic innovation, we're also making strategic acquisitions. We're focused on finding purpose built solutions and exceptional teams that complement our strategy, strengthen our leadership and allow us to deliver even greater value to our customers. And today, I'm thrilled to share the exciting news that we've signed a definitive agreement to acquire Paradox, a breakthrough candidate experience agent that uses conversational AI to completely reimagine the job application experience. Paradox turns long, complex hiring processes into fast, natural language conversations, making it easier for people to find work and for companies to fill critical roles, especially in frontline industries like retail, healthcare, hospitality, transportation, and manufacturing. With Workday recruiting, HiredScore, and now Paradox, we will be able to deliver an incredibly powerful AI powered talent acquisition suite, helping customers find, hire, and onboard every type of worker for every type of work.

Now let's turn to our platform. We're continuing to evolve Workday as not only the best application for people and money, but the best platform as well. And you can see that strategy play out in the incredible growth of Workday Extend. In Q2, new ACV from Extend Pro more than doubled year over year, driven by demand to build custom applications and experiences on top of Workday. Developers are embracing Workday's tools, including Extend and our AI APIs to expand the Workday footprint in new industries, markets, and territories.

In fact, we now have more than 100 Marketplace apps live on Workday Marketplace, which has doubled since the start of FY twenty six. To accelerate that innovation, we launched enhancements to Workday Developer Co Pilot in Q2. This makes it even easier for developers to integrate AI capabilities into their apps and agents. We also launched our AI agent partner network and the AI agent gateway, making it simple for partners to connect their agents to the Workday agent system of record. We're thrilled to have AWS, Google Cloud, PwC, and Green among the first to sign on.

We rolled out these innovations at DevCon, our annual developer conference. The excitement was incredible. We saw record turnout, and our developer community has now doubled in size year over year. And we're not stopping there. You may have seen that we also recently acquired Flowwise, a leading low code platform for building powerful agents.

Flowwise will turbocharge our customers' ability to create and deploy new AI agents at scale. It is built on an open source foundation and is already processing millions of chats and workflows. It's earned more than 42,000 GitHub stars and is gaining strong adoption across industries. And not only does Workday continue to invest in promising innovation, we also attract the best people in the industry. Peter Baylis, our new Chief Technology Officer, is now on board and already driving our AI and platform agenda.

And we didn't stop there, as we brought in several new technical leaders across our platform, emerging and medium enterprise, and security teams in Q2 as well. Partners are critical to our success, extending the power of our platform, fueling our pipeline and delivering new innovations to our customers. For the second quarter in a row, more than 20% of our net new ACV signed in the quarter was sourced from partners. Strategic partnerships are helping us generate new revenue streams and enhance employee services. In the quarter, we expanded our partnership with DailyPay, giving employees easier access to earned wages before payday.

Another great example is our Employment Verification Connector for Equifax announced a few quarters ago. Workday wellness continues to gain momentum, with Benepass, Chime, and New York Life joining in the financial benefits category and Voya joining in the health benefits category. In its first year, customer response has been incredible and has already been recognized as one of the top HR products of the year by HR executive and HR tech. Similar to the partner ecosystem, our international business remains a major growth opportunity for Workday. And we delivered a solid Q2 across regions, notably EMEA.

Germany and UKI were standouts in the region, with wins and expansions at Haven Leisure, Johnston Carmichael Scotland, and DQS Holdings to name a few. In APAC, we had great wins with Qantas and Lumis Imaging. We also signed our first deal in Vietnam with Ma San Group, a top conglomerate spanning retail, banking and infrastructure. And our investments in Japan over the last couple of years are really starting to pay off with continued momentum and expansions including Tokyo Electron and ASTIMO in the quarter. As we continue to expand our global footprint, India is a key part of our strategy.

In Q2, we hired Sunil Jose as President of India, announced we will begin offering services to a local data center, and we're growing our team and our partner ecosystem in this critical market. We're heading into the second half of the year with incredible momentum, driven by our AI innovation, our unified platform, our ecosystem, and of course, our workmates. We continue to be a magnet for exceptional talent, attracting world class leaders to Workday across all functions. We're building for the long term while executing in the near term, and I couldn't be more excited about what's ahead. When we put AI to work for people, not in place of them, we unlock potential we've only begun to imagine. That's the future we're creating with our customers, and I can't wait for you to see what we achieve together. I'm deeply grateful to our global workmates, our customers, and our partners for making Q2 such a solid quarter. And I look forward to seeing many of you at Workday Rising in our Financial Analyst Day on September 16, where we'll share more about how we're shaping an AI powered, human centric, and future ready Workday. With that, I'll turn it over to Zane.

Thanks, Carl, and thank you to everyone for joining today's call. Our Q2 results were supported by ongoing momentum across several of our growth areas as companies around the globe turn to Workday to manage and empower their most mission critical assets. Turning to results, subscription revenue in the second quarter was $2,169,000,000 up 14%. Professional services revenue was $179,000,000 resulting in total revenue of $2,348,000,000 growth of 13%. U.

S. Revenue in Q2 totaled 1,760,000,000.00 up 13%. International revenue totaled $584,000,000 up 11%. This includes a three point impact year over year from an increased mix of international partner deployments. Twelve month subscription revenue backlog, or CRPO, was $7,910,000,000 at the end of Q2, increasing 16.4%.

The result was driven by elevated volume of renewal activity, including higher than expected early renewals along with continued momentum in new ACV and strong partner growth. Approximately one point of CRPO growth came from tenants in line with our expectations. We anticipate this impact on growth will be just over a point for the remainder of the year. Total subscription revenue backlog at the end of the quarter was $25,370,000,000 up 18%, and gross revenue retention rates remained healthy at 97%. Non GAAP operating income for the second quarter was $680,000,000 representing a non GAAP operating margin of 29%.

We continue to execute on delivering margin expansion while growing our top line. We're focused on making targeted and impactful investments to support long term growth, such as expanding our AI talent, both organically and inorganically, entering new markets such as India, and investing in certain industries, including our federal business. At the same time, we are driving efficiencies across people, processes, and systems, all accelerated by AI. Q two operating cash flow was $616,000,000, growth of 8%. We repurchased $299,000,000 of our shares during the quarter and had $1,200,000,000 in remaining authorization as of July 31.

We ended the quarter with $8,200,000,000 in cash and marketable securities. Our headcount as of July 31 stood at approximately 19,500 workmates around the globe. Now turning to guidance. Following our first half momentum and incorporating the acquisition of Paradox, which we expect to close later in Q3, we're increasing our FY twenty twenty six subscription revenue guidance to 8,815,000,000 growth of 14%. We expect Q3 FY twenty six subscription revenue to be approximately $2,235,000,000 also growth of 14%.

We expect CRPO to increase between 1516% in Q3. This does not include the impact of the Paradox acquisition. We continue to expect FY twenty twenty six professional services revenue of approximately $700,000,000 For Q3, we expect professional services revenue of $180,000,000 We're increasing our FY '26 non GAAP operating margin to approximately 29, reflecting ongoing efficiencies we're driving across the business. For Q3, we expect non GAAP operating margin of 28%. We expect GAAP operating margins to be approximately seventeen twenty one points lower than our Q3 and full year FY 2026 non GAAP operating margins respectively.

The FY twenty six non GAAP tax rate is expected to be 19%. We're increasing our FY twenty six operating cash flow outlook to $2,850,000,000 driven by the timing of cash tax payments as well as our operating performance for the year. We now expect FY twenty six capital expenditures of approximately $200,000,000 reflecting free cash flow of $2,650,000,000 growth of 21%. We look forward to hosting many of you at our upcoming Financial Analyst Day on September 16, where we will share our framework for future growth and margin expansion. We are well positioned to capture our growing TAM and the emerging AI opportunity, and we're excited about the growth and value we expect to drive for our customers, partners, and shareholders.

Workday (WDAY) Q2 2026 Earnings Call Transcript

Company Participants