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Workiva NYSE: WK reported second-quarter 2026 revenue of $255 million, up 19% from a year earlier and $3 million above the high end of its guidance range, as subscription growth and operational efficiency supported higher profitability.

Subscription revenue rose 19% year over year to $236 million, while professional services revenue increased 12% to $19 million, driven by stronger-than-expected XBRL services activity. Chief Financial Officer Barbara Larson said foreign exchange had minimal impact on reported growth during the quarter, contrasting with the tailwind experienced in the prior four quarters.

The company reported a non-GAAP operating margin of 16.8%, exceeding the high end of its outlook by 180 basis points and improving 1,300 basis points from the second quarter of 2025. Workiva raised its full-year non-GAAP operating margin forecast to approximately 18%, reaching a target previously included in its 2027 operating model a year ahead of schedule.

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Customer Growth and Contract Momentum Workiva ended the quarter with 6,750 customers, an increase of 283 from a year earlier. Gross retention was 97%, above the company’s 96% target, while net retention was 111%. Larson said constant-currency net retention was relatively steady sequentially and remained above Workiva’s 110% target.

Current remaining performance obligations, which represent revenue expected to be recognized over the next 12 months, totaled $789 million, up 18% year over year. The figure included an approximately one-percentage-point negative foreign-currency impact.

The company also cited continued growth in larger customer relationships. Contracts valued at more than $300,000 annually increased 34% year over year to 656, while contracts above $500,000 rose 33% to 276. Workiva said 76% of subscription revenue came from customers using multiple solutions, compared with 71% a year earlier.

Chief Executive Officer Julie Iskow said demand remained consistent through the year despite a dynamic environment marked by evolving regulations and increased focus on artificial intelligence governance. She said sales teams are seeing more deal scrutiny, additional approvers and more legal review, but added that Workiva has prepared its field, operations and legal teams for that process.

“Deals do have more scrutiny, and there are maybe more approvers and more rigor at the legal level,” Iskow said. “We’re very much aware of this, prepared, and being aware and being prepared makes a real difference in our execution.”

Iskow also said deal cycles shortened during the past two quarters. The company’s strongest net-new customer addition quarter in the past seven quarters was accompanied by larger initial customer relationships, including more multi-solution and six-figure deals, she said.

Platform, AI and Industry Demand Management emphasized demand for a unified platform that combines financial reporting, governance, risk and compliance, sustainability reporting and other workflows. Iskow said finance leaders are being asked to govern data and AI, automate manual processes, deliver faster insights and maintain auditability amid a more complex regulatory environment.

Workiva highlighted growth across financial reporting, fund reporting, governance risk and compliance, and sustainability offerings. The company cited examples of customers expanding their use of the platform to support regulatory reporting, multi-entity reporting, controls management, tax reporting, enterprise risk and sustainability disclosures.

In financial services, Iskow said Workiva has expanded its presence in the U.S. and Europe and is seeing encouraging traction for its Fund Reporting products. She described the public-funds offering as still in its early stages but said the company is encouraged by deal sizes and the product’s fit with large enterprises.

The company also said sustainability buyers are increasingly seeking to connect financial and non-financial reporting processes. According to Iskow, larger sustainability wins commonly include financial reporting solutions, as organizations address requirements such as CSRD, ISSB and California’s SB 253.

Workiva recently introduced AI capabilities in advanced solution tiers, including agents for sustainability disclosure, financial tie-out and disclosure peer benchmarking. The company also launched the Workiva MCP Gateway, which it described as a governed connectivity layer for linking Workiva data and workflows with enterprise AI tools. Iskow said the capabilities are designed to preserve identity controls, permissions, governance and data lineage.

Management said adoption of premium product tiers remains early but is gaining traction. Iskow said the company has achieved a price premium of more than 20% for the tiers and is seeing customers upgrade at renewal and, in some cases, during contract periods to access AI and other advanced capabilities.

Outlook and Capital Position For the third quarter, Workiva expects total revenue of $260 million to $262 million and a non-GAAP operating margin of 17% to 17.5%. Services revenue is expected to be slightly higher than in the third quarter of 2025.

Full-year revenue is projected at $1.040 billion to $1.044 billion. Full-year subscription revenue is expected to grow about 19% year over year. Full-year services revenue is expected to increase slightly. Full-year non-GAAP operating margin is projected at about 18%. Free cash flow margin guidance was raised by 100 basis points to approximately 21%. Larson said the second-half outlook assumes foreign exchange rates remain roughly in line with June 2026 levels, resulting in minimal year-over-year foreign-currency impact on projected revenue growth in the third and fourth quarters.

As of June 30, Workiva had $815 million in cash equivalents and marketable securities, down $48 million from the prior quarter. The company repurchased 2.49 million Class A shares for $123 million during the quarter. Workiva has repurchased $244 million under its $350 million authorization, leaving $106 million available at quarter end.

While the company now expects to meet its 2027 operating-margin target early, Larson said Workiva was not updating its 2030 financial framework. She said the company remains focused on disciplined investment, sales productivity, platform selling and growth opportunities across its portfolio and international markets.

About Workiva (NYSE:WK)Workiva, originally founded as WebFilings in 2008, delivers a cloud-native platform designed to streamline and connect data, documents and teams for reporting and compliance. Its flagship Workiva platform supports a range of applications including financial reporting, regulatory filings, internal controls documentation, risk management and environmental, social and governance (ESG) disclosures. By centralizing data and automating workflows, the company helps organizations improve accuracy, transparency and auditability across critical reporting processes.

The Workiva platform offers modular solutions that integrate with existing enterprise systems and data sources.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Workiva (WK - Free Report) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +20.31%. A quarter ago, it was expected that this maker of software for managing regulatory filings would post earnings of $0.66 per share when it actually produced earnings of $0.77, delivering a surprise of +16.67%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Workiva, which belongs to the Zacks Internet - Software industry, posted revenues of $255.29 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.74%. This compares to year-ago revenues of $215.19 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Workiva shares have lost about 29% since the beginning of the year versus the S&P 500's gain of 11%.

What's Next for Workiva?While Workiva has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Workiva was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.68 on $261.74 million in revenues for the coming quarter and $2.90 on $1.04 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Asana, Inc. (ASAN - Free Report) , has yet to report results for the quarter ended July 2026.

This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Asana, Inc.'s revenues are expected to be $214.09 million, up 8.7% from the year-ago quarter.