Interested in Workiva Inc.? Here are five stocks we like better.
Strong Q2 performance: Workiva reported revenue of $255 million, up 19% year over year and above guidance, while non-GAAP operating margin reached 16.8%. The company raised full-year margin guidance to approximately 18%, achieving its 2027 target a year early.
Healthy customer and platform momentum: Customers grew to 6,750, gross retention reached 97% and net retention remained above the 110% target. Larger contracts and multi-solution adoption increased, supported by demand for reporting, compliance, sustainability and AI-governance tools.
Outlook raised: Workiva projects full-year revenue of $1.040 billion to $1.044 billion, subscription growth of about 19% and free-cash-flow margin of approximately 21%. The company repurchased $123 million of shares in Q2, with $106 million remaining under its authorization.
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.
→ Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling
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.
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.
→ 4 Oil and Gas ETF Plays as Prices Stay Sky-High
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.
→ No Hangover: Revisiting Microsoft One Week After Earnings
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."