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Workday, Inc. the AI platform for managing people, money, and agents, today announced results for the fiscal 2026 first quarter ended April 30, 2025.
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.
“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.
| 1 | 2025 Gartner® Magic Quadrant™ for Higher Education Student Information System Software as a Service. By Grace Farrell, Robert Yanckello, 24 March 2025. |
| 2 | 2025 Gartner® Magic Quadrant™ for Talent Acquisition (Recruiting) Suites. By Rania Stewart, Jackie Watrous, Hiten Sheth, Emi Chiba, 2 April 2025. |
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
| 1 | The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin inreliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable to predict with reasonablecertainty the amount and timing of adjustments that are used to calculate this non-GAAP financial measure, particularly related to stock-based compensationand its related tax effects, acquisition-related costs, and restructuring costs. |
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.
