Workday reported strong Q1 FY26 earnings with total revenue reaching $2.24 billion, a 12.6% increase year-over-year. Subscription revenue grew by 13.4%, driven by demand for its AI-powered platform. Despite a GAAP operating income dip due to $166 million in restructuring costs, non-GAAP operating income rose 31% to $677 million. Workday reaffirmed its $8.8 billion FY26 subscription revenue guidance while raising its operating margin outlook. New product releases like Illuminate Agents and expanded enterprise adoption demonstrate continued strategic growth.

Fiscal First Quarter Total Revenues of $2.240 Billion, Up 12.6% Year Over Year
Subscription Revenues of $2.059 Billion, Up 13.4% Year Over Year

PLEASANTON, Calif., May 22, 2025 -- Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people, money, and agents, today announced results for the fiscal 2026 first quarter ended April 30, 2025.

Fiscal 2026 First Quarter Results

• Total revenues were $2.240 billion, an increase of 12.6% from the first quarter of fiscal 2025. Subscription revenues were $2.059 billion, an increase of 13.4% from the same period last year.


• Operating income was $39 million, or 1.8% of revenues, compared to an operating income of $64 million, or 3.2% of revenues, in the same period last year. Operating income in the first quarter of fiscal 2026 was impacted by restructuring expenses of $166 million. Non-GAAP operating income for the first quarter was $677 million, or 30.2% of revenues, compared to a non-GAAP operating income of $515 million, or 25.9% of revenues, in the same period last year.¹


• Diluted net income per share was $0.25, compared to diluted net income per share of $0.40 in the first quarter of fiscal 2025. Net income per share in the first quarter of fiscal 2026 was impacted by restructuring expenses of $166 million. Non-GAAP diluted net income per share was $2.23, compared to non-GAAP diluted net income per share of $1.74 in the same period last year.¹


• 12-month subscription revenue backlog was $7.63 billion, up 15.6% from the same period last year. Total subscription revenue backlog was $24.62 billion, increasing 19.1% year-over-year.


• Operating cash flows were $457 million compared to $372 million in the prior year. Free cash flows were $421 million compared to $291 million in the prior year.¹


• Workday repurchased approximately 1.3 million shares of Class A common stock for $293 million as part of its share repurchase programs.


• Cash, cash equivalents, and marketable securities were $7.97 billion as of April 30, 2025.

Comments on the News

"Workday delivered another solid quarter, a testament to the durability of our business and the relevance of our platform as CEOs increasingly turn to us to drive efficiency, agility, and growth," said Carl Eschenbach, CEO, Workday. "We are delivering real ROI for our customers by helping them effectively manage their most critical assets—people and money—on one unified platform with AI at the core."

"Our first quarter results highlight the ongoing progress across our strategic growth areas and the continued efficiencies we are driving throughout the business," said Zane Rowe, CFO, Workday. "We remain focused on executing in this uncertain environment and are reiterating our fiscal 2026 subscription revenue guidance of $8.8 billion while increasing our fiscal 2026 non-GAAP operating margin guidance to approximately 28.5%."

Recent Highlights

• Workday introduced new Illuminate Agents to accelerate hiring, enhance frontline worker experiences, simplify financial processes, and improve employee information access.


• Evisort's AI-powered contract intelligence and contract lifecycle management solutions became available through Workday.


• Workday welcomed new customers including Dover Corporation, Mutual of Omaha Insurance Company, and United Airlines, and expanded existing relationships with ASDA stores, Chipotle, CVS Health, and Decathlon.


• Workday was named a Leader in the 2025 Gartner^® Magic Quadrant™ for Higher Education Student Information System Software as a Service¹ and Talent Acquisition (Recruiting) Suites.²


• Workday was recognized as one of the 2025 World's Most Ethical Companies^® by Ethisphere for the fifth consecutive year.


• Workday saw notable industry growth in Q1, with the technology & media and manufacturing verticals each crossing $1 billion in annual recurring revenue.


• Workday continued its international expansion by going live on the AWS U.K. public cloud and announcing a new location for its EMEA headquarters in Dublin.


• Workday announced that its Board of Directors approved a new share repurchase program to repurchase up to an additional $1.0 billion of shares of its Class A common stock.

Financial Outlook

Workday is providing guidance for the fiscal 2026 second quarter ending July 31, 2025 as follows:

• Subscription revenue of $2.160 billion, representing growth of 13.5%


• Non-GAAP operating margin of 28.0%¹

Workday is updating guidance for the fiscal 2026 full year ending January 31, 2026 as follows:

• Subscription revenue of $8.800 billion, representing growth of 14.0%


• Non-GAAP operating margin of 28.5%¹

Earnings Call Details

Workday plans to host a conference call today to review its fiscal 2026 first quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.

Workday uses the Workday Blog as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Workday

Workday is the AI platform for managing people, money, and agents. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 11,000 organizations around the world and across industries – from medium-sized businesses to more than 60% of the Fortune 500. For more information about Workday, visit workday.com.

© 2025 Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding our intended share repurchases, Workday's second quarter and full year fiscal 2026 subscription revenue and non-GAAP operating margin, growth, and strategy. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to: (i) breaches in our security measures or those of our third-party providers, unauthorized access to our customers' or other users' personal data, or disruptions in our data center or computing infrastructure operations; (ii) service outages, delays in the deployment of our applications, and the failure of our applications to perform properly; (iii) privacy concerns and evolving domestic or foreign laws and regulations; (iv) the impact of continuing global economic and geopolitical volatility on our business, as well as on our customers, prospects, partners, and service providers; (v) any loss of key employees or the inability to attract, train, and retain highly skilled employees; (vi) competitive factors, including pricing pressures, industry consolidation, entry of new competitors and new applications, advancements in technology, and marketing initiatives by our competitors; (vii) our reliance on our network of partners to drive additional growth of our revenues; (viii) the regulatory, economic, and political risks associated with our domestic and international operations; (ix) adoption of our applications and services by customers and individuals, including any new features, enhancements, and modifications, as well as our customers' and users' satisfaction with the deployment, training, and support services they receive; (x) the regulatory risks related to new and evolving technologies such as AI and our ability to realize a return on our development efforts; (xi) our ability to realize the expected business or financial benefits of any acquisitions of or investments in companies; (xii) delays or reductions in information technology spending; (xiii) adverse litigation results; and (xiv) changes in sales, which may not be immediately reflected in our results due to our subscription model. Further information on these and additional risks that could affect Workday's results is included in our filings with the Securities and Exchange Commission ("SEC"), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday's discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.