Summary by Futu AI
Workday reported strong Q2 fiscal 2025 results with total revenues reaching $2.1 billion, up 17% year-over-year. Subscription services revenue grew 17% to $1.9 billion, while professional services revenue increased 12% to $182 million. GAAP operating income more than tripled to $111 million, representing a 5.3% operating margin.The company demonstrated solid execution with subscription revenue backlog growing 21% year-over-year to $21.6 billion, with $6.8 billion expected to be recognized within 12 months. Operating cash flow increased 34% to $571 million, while free cash flow rose 43% to $516 million. The company maintained strong gross and net revenue retention rates exceeding 95% and 100% respectively.Looking ahead, Workday continues to invest in strategic growth areas including AI innovation, international expansion, and industry solutions while maintaining disciplined operational efficiency. The company completed its $500 million share repurchase program and authorized a new $1 billion buyback program, demonstrating confidence in its long-term outlook and commitment to delivering shareholder value.
