Workday Q2 2027 Results Beat on AI Momentum but Draw Mixed Analyst Reactions

Workday posted second-quarter fiscal 2027 results highlighted by subscription revenue of $2.471 billion, up 14% year-over-year, with total revenue rising 13% to $2.649 billion as AI agent adoption drove what the company described as record growth. Professional services contributed $178 million to the top line. The strong print prompted several price target increases: BMO Capital Markets raised its target from $182 to $230 while maintaining an Outperform rating, and Monness Crespi and Hardt lifted its target from $202 to $218 on a Buy rating.

However, the reaction was not uniformly positive. Capital One downgraded Workday from Overweight to Equal Weight with a $219 price target, citing what analysts characterized as a mixed guidance reaction. Shares were up roughly 0.7% in pre-market trading on August 28, with options implied volatility and expected option volume both rising, reflecting uncertainty around the stock's near-term direction despite the earnings beat.