Workiva (NYSE:WK) Releases Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Q1 beat: Workiva reported $0.77 EPS vs. $0.66 consensus and revenue of $247.3M, up ~19.9% year‑over‑year, while non‑GAAP operating margin improved to 18.4% and materially beat guidance.
• Raised profitability guidance: Management updated FY2026 EPS to $2.85–$2.95 and Q2 EPS to $0.62–$0.65 (well above prior consensus), while guiding full‑year revenue to $1.037B–$1.041B and lifting margin and free‑cash‑flow expectations.
• Strong financial flexibility and buybacks: The company holds $863M in cash and marketable securities, repurchased ~$122M under its prior program, and its board authorized a new $250M share repurchase program.

Workiva (NYSE:WK - Get Free Report) released its quarterly earnings results on Tuesday. The software maker reported $0.77 earnings per share for the quarter, beating analysts' consensus estimates of $0.66 by $0.11, FiscalAI reports. The business had revenue of $247.31 million for the quarter, compared to the consensus estimate of $245.17 million. The firm's revenue for the quarter was up 19.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.14 EPS. Workiva updated its FY 2026 guidance to 2.850-2.950 EPS and its Q2 2026 guidance to 0.620-0.650 EPS.

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

• Q1 beat expectations — Total revenue was $247M, up 20% year‑over‑year with subscription revenue up 21%, and non‑GAAP operating margin of 18.4% beat guidance by 240 bps and improved ~1,600 bps versus Q1 2025.
• Upmarket, multi‑solution traction — Large contract cohorts expanded meaningfully (contracts >$300K +38%, >$500K +39%), net retention was 112%, and 75% of subscription revenue came from multi‑solution customers, often sold via Big Four/regional partners.
• AI and product innovation — Workiva rolled out agent‑driven features (GRC flowchart visualizer, IFRS sustainability agent, Internal Tie‑Out Assistant) and is embedding AI to improve customer value and internal productivity.
• Guidance and near‑term cadence — Q2 revenue guide of $250M–$252M and a lower Q2 non‑GAAP margin (14.5%–15.0%) reflect seasonality/headcount timing, while full‑year revenue is guided to $1.037B–$1.041B with a raised margin outlook of 16.0%–16.5% and ~20% free cash flow margin.
• Strong balance sheet and buybacks — Cash and marketable securities of $863M and $50M of share repurchases in Q1 ( $122M repurchased of a $350M program) give flexibility for returns and opportunistic repurchases.

Workiva Stock Down 2.2%

NYSE WK traded down $1.23 during midday trading on Tuesday, hitting $55.35. The company had a trading volume of 1,422,794 shares, compared to its average volume of 1,104,579. The stock has a market cap of $3.15 billion, a price-to-earnings ratio of -115.32 and a beta of 0.54. The firm has a fifty day simple moving average of $58.74 and a two-hundred day simple moving average of $75.12. Workiva has a fifty-two week low of $50.98 and a fifty-two week high of $97.10.

Institutional Trading of Workiva

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Brevan Howard Capital Management LP acquired a new stake in Workiva in the 3rd quarter worth $305,000. EntryPoint Capital LLC acquired a new stake in Workiva in the 4th quarter worth $290,000. Cibc World Markets Corp acquired a new stake in Workiva in the 4th quarter worth $287,000. XTX Topco Ltd acquired a new stake in Workiva in the 4th quarter worth $227,000. Finally, Cerity Partners LLC grew its position in Workiva by 24.8% in the 2nd quarter. Cerity Partners LLC now owns 3,297 shares of the software maker's stock worth $226,000 after purchasing an additional 656 shares during the last quarter. 92.21% of the stock is currently owned by institutional investors and hedge funds.

Workiva announced that its board has initiated a stock repurchase program on Monday, February 16th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the software maker to purchase up to 7.7% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Key Stories Impacting Workiva

Here are the key news stories impacting Workiva this week:

• Positive Sentiment: Q1 results beat expectations: Workiva reported $0.77 EPS vs. $0.66 consensus and revenue of $247.3M vs. $245.2M, with revenue up ~19.9% year-over-year — a clear operational beat that supports the growth story. Read More.
• Positive Sentiment: Management issued materially higher EPS guidance: Q2 EPS guide of $0.62–$0.65 (consensus ~$0.42) and FY 2026 EPS guide of $2.85–$2.95 (consensus ~$2.28) — this lift to profitability expectations is a strong positive for underlying earnings power. Read More.
• Positive Sentiment: Management tone emphasizes AI-driven demand and adoption in the Office of the CFO, reinforcing secular growth narrative and product-led momentum. Read More.
• Neutral Sentiment: Analyst coverage confirms the beat: multiple write-ups (Zacks, MarketBeat) highlight the top-line and EPS beats and walk through key metrics vs. estimates — useful context but largely reiterative of results. Read More.
• Negative Sentiment: Q2 revenue guidance is essentially flat to just below consensus ($250.0M–$252.0M vs. ~$252.1M consensus) and FY revenue guidance is roughly in-line — some investors may be disappointed that revenue guidance didn’t see the same upside as EPS, raising short-term growth/visibility questions. Read More.

Analysts Set New Price Targets

WK has been the topic of a number of recent research reports. Robert W. Baird cut their price target on shares of Workiva from $115.00 to $86.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. The Goldman Sachs Group restated a "buy" rating and set a $102.00 price target on shares of Workiva in a report on Friday, February 20th. Citigroup restated a "buy" rating on shares of Workiva in a report on Monday, February 23rd. Stifel Nicolaus cut their price target on shares of Workiva from $98.00 to $79.00 and set a "buy" rating on the stock in a report on Friday, February 20th. Finally, Stephens set a $90.00 target price on shares of Workiva in a report on Friday, February 20th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Workiva has an average rating of "Moderate Buy" and a consensus target price of $95.00.

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.

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 contact@marketbeat.com.