Workiva (NYSE:WK) Announces Quarterly Earnings Results, Beats Expectations By $0.13 EPS

Workiva (NYSE:WK) released its earnings results on Tuesday. The software maker reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.64 by $0.13, FiscalAI reports. The firm had revenue of $255.29 million for the quarter, compared to analysts’ expectations of $251.16 million. Workiva had a negative return on equity of 290.76% and a net margin of 4.87%.The business’s revenue for the quarter was up 18.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.19 earnings per share. Workiva updated its FY 2026 guidance to 3.380-3.390 EPS and its Q3 2026 guidance to 0.790-0.820 EPS.

Here are the key takeaways from Workiva’s conference call:

• Q2 revenue and retention exceeded expectations: Total revenue rose 19% year over year to $255 million, while subscription revenue also grew 19% and beat the high end of guidance. Gross retention reached 97% and net retention was 111%, above the company’s 110% target.
• Profitability and cash-flow outlook improved significantly: Non-GAAP operating margin was 16.8%, a 1,300-basis-point year-over-year improvement, prompting Workiva to raise its full-year margin outlook to approximately 18% and free cash flow margin outlook to approximately 21%. The company expects to reach its previously stated 2027 margin target one year early.
• Enterprise expansion remained strong: Contracts above $300,000 and $500,000 annually grew 34% and 33%, respectively, while 76% of subscription revenue came from customers using multiple solutions. Management highlighted wins and expansions across financial reporting, financial services, GRC, sustainability, and capital markets.
• AI capabilities are being integrated into premium offerings: New agents for sustainability disclosures, financial tie-outs, and peer benchmarking, along with the MCP Gateway and custom knowledge bases, are designed to provide governed and auditable AI workflows. Management said premium-tier adoption has shown “excellent traction,” supporting potential upsell and monetization.
• Deal execution remains subject to increased customer scrutiny: Management said sales cycles have recently shortened, but deals face more approvers and greater legal rigor. Full-year guidance assumes largely stable foreign-exchange rates, while some Q2 services outperformance from annual 11-K filings is not expected to repeat in the second half.

Workiva Price Performance

NYSE WK opened at $61.89 on Thursday. The stock has a market capitalization of $3.47 billion, a price-to-earnings ratio of 75.48 and a beta of 0.46. Workiva has a one year low of $43.34 and a one year high of $97.10. The business’s fifty day moving average is $52.11 and its 200-day moving average is $57.79.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on WK shares. Citigroup reiterated a “buy” rating on shares of Workiva in a report on Thursday. Raymond James Financial restated an “outperform” rating and set a $85.00 price objective on shares of Workiva in a research report on Wednesday, May 6th. Wall Street Zen raised shares of Workiva from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 25th. Stephens reiterated an “overweight” rating and set a $68.00 price objective on shares of Workiva in a research report on Tuesday, May 26th. Finally, Stifel Nicolaus set a $70.00 target price on shares of Workiva in a report on Wednesday. Ten equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Workiva presently has a consensus rating of “Moderate Buy” and an average target price of $84.75.

Insiders Place Their Bets

In related news, Director Robert H. Herz sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $49.69, for a total transaction of $49,690.00. Following the sale, the director directly owned 34,802 shares in the company, valued at approximately $1,729,311.38. This represents a 2.79% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 4.77% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Millennium Management LLC boosted its stake in Workiva by 44.5% during the first quarter. Millennium Management LLC now owns 237,746 shares of the software maker’s stock valued at $18,047,000 after buying an additional 73,266 shares during the period. Empowered Funds LLC purchased a new stake in Workiva in the first quarter valued at approximately $421,000. Prudential Financial Inc. raised its stake in Workiva by 66.7% in the second quarter. Prudential Financial Inc. now owns 6,259 shares of the software maker’s stock valued at $428,000 after purchasing an additional 2,505 shares in the last quarter. Cerity Partners LLC lifted its position in Workiva by 24.8% during the second quarter. Cerity Partners LLC now owns 3,297 shares of the software maker’s stock valued at $226,000 after purchasing an additional 656 shares during the last quarter. Finally, California Public Employees Retirement System lifted its position in Workiva by 0.4% during the second quarter. California Public Employees Retirement System now owns 82,197 shares of the software maker’s stock valued at $5,626,000 after purchasing an additional 342 shares during the last quarter. 92.21% of the stock is currently owned by hedge funds and other institutional investors.

About Workiva

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.