Workday, Inc.WDAY
Workday, Inc. Financial Overview 2022–2026
Updated Jul 10, 2026Workday generated $2.8 billion in free cash flow during FY2026, funneling the capital directly into a $2.9 billion share repurchase program. This aggressive shareholder return signals a decisive fundamental pivot. The enterprise software provider has transitioned from prioritizing top-line expansion into a highly profitable scaling engine, leveraging a 98% gross revenue retention rate to fund both internal operations and strategic acquisitions.
The company's financial arc shows consistent, compounding execution. Total revenue more than doubled from $4.5 billion in FY2022 to $9.55 billion in FY2026. Subscriptions now generate 92% of that top line. As revenue scaled, management enforced strict cost discipline through targeted workforce reductions to drive efficiencies. This operational leverage triggered a 74% year-over-year surge in GAAP operating income, which hit $721 million in FY2026, while Non-GAAP operating income climbed 29% to $2.82 billion. This internal cash generation provided the financial firepower to outright acquire artificial intelligence startups like Paradox for $1.0 billion.
Despite the rapid profitability expansion, the market has dramatically recalibrated the company's premium multiple. At the close of FY2025, the market valued the enterprise at a steep 134.4x earnings multiple on a closing price of $262.06. One year later, at the close of FY2026, the stock price had retreated to $175.63. Coupled with rising net income, this price action compressed the valuation to a leaner 67.8x earnings, reflecting a structural shift in investor focus from pure sales growth to bottom-line execution.
Recent Developments (Q4 2026 and Q1 2027)
In Q4 2026, co-founder Aneel Bhusri reclaimed the CEO title following Carl Eschenbach's resignation. This leadership shift coincided with a 2% workforce reduction, triggering $135 million in quarterly restructuring charges.
Despite these cuts, operations accelerated in Q1 2027. Total revenue grew 13% year-over-year to $2.54 billion, supported by a $27.3 billion subscription backlog. Operating leverage materialized quickly, with GAAP operating margins expanding from 1.8% to 13.3%, driving quarterly net income to $222 million. Bull case: Rapid margin expansion and a $1.6 billion quarterly stock buyback highlight strong underlying cash generation. Bear case: The sudden executive transition and targeted headcount reductions suggest potential friction in sustaining organic growth rates. At 49.5x earnings as of the Q1 2027 reporting date, the stock remains richly valued despite recent multiple compression.
What to watch: execution against the subscription backlog; the trajectory of strategic platform investments like Workday Data Cloud.
Rev
$9.55B
FY2026
NI
$693.0M
FY2026
EPS
$2.61
FY2026
OCF
$2.94B
FY2026
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
Workday, Inc. 8-K Report, Shareholder Vote Results (Jun 22, 2026)
Workday, Inc. (WDAY) filed an 8-K on June 22, 2026, detailing the results of its Annual Meeting of Stockholders held on June 16, 2026. The meeting saw high participation, with approximately 97.58% of eligible votes represented, ensuring a quorum. Key outcomes include the overwhelming approval of all director nominees, the ratification of Ernst & Young LLP as the independent auditor for the fiscal year ending January 31, 2027, and advisory approval of executive compensation. The company also secured stockholder support for amendments to its 2022 Equity Incentive Plan and its 2012 Employee Stock Purchase Plan, both aimed at increasing the number of shares reserved for issuance, which is generally positive for supporting future growth and employee incentives.
Workday, Inc. 8-K Report, Financial Results (May 21, 2026)
Workday, Inc. (WDAY) has filed an 8-K report on May 21, 2026, to announce its financial results for the first quarter of fiscal year 2027, ending April 30, 2026. This filing primarily references a press release, which contains the detailed financial outcomes and operational performance for the period. Investors should note that while this report serves to disseminate this information, it is furnished and not deemed 'filed' for regulatory purposes under Section 18 of the Exchange Act, nor incorporated by reference into other securities filings unless explicitly stated. As the 8-K report itself is brief and points to the attached press release for specifics, the key takeaways for investors will be found within that accompanying document. This typically includes metrics such as revenue growth, profitability (both GAAP and non-GAAP), earnings per share, subscription revenue performance, and guidance for the upcoming quarters. Investors will be looking for signs of continued strong adoption of Workday's cloud-based solutions and the company's ability to maintain its growth trajectory and profitability in a competitive market.
Workday, Inc. 8-K Report, Exhibit Filing (Apr 24, 2026)
Workday, Inc. (WDAY) has filed an 8-K on April 24, 2026, reporting amendments to its Executive Severance and Change in Control Policy. These changes, effective April 20, 2026, primarily impact the benefits provided to executives in the event of a 'Non-CIC Qualifying Termination,' which is a termination that does not involve a change in control. The primary revisions focus on the acceleration of equity awards and the calculation of lump sum cash severance payments.
Workday, Inc. 8-K Report, Executive Changes (Mar 6, 2026)
This 8-K filing from Workday, Inc. details the equity awards granted to Aneel Bhusri, Executive Chair and newly appointed CEO, on March 5, 2026. The awards are designed to incentivize Mr. Bhusri's leadership and align his compensation with the company's stock performance. A significant portion of his compensation is tied to achieving specific stock price appreciation targets over a five-year period, with vesting contingent on continued service. Investors should note that Mr. Bhusri will not be eligible for additional equity awards until fiscal 2028, indicating a long-term commitment to these current grants. The performance-based Restricted Stock Unit (RSU) award, termed the PVU Award, has a multi-tiered stock price hurdle structure. Vesting of the PVU Award's tranches is dependent on achieving these price targets, measured by a trailing moving average stock price against a baseline established on the grant date. The structure suggests a focus on sustained stock price growth and shareholder value creation.
Workday, Inc. 8-K Report, Financial Results (Feb 24, 2026)
Workday, Inc. (WDAY) has filed an 8-K report on February 24, 2026, to announce its financial results for the fiscal fourth quarter and full year ended January 31, 2026. The report primarily incorporates a press release detailing these results, which are crucial for investors seeking to understand the company's recent performance and financial health. Investors should refer to the press release (Exhibit 99.1) for the specific financial figures and operational commentary. The filing also notes Workday's use of its blogs.workday.com website for material non-public information disclosures, a practice investors should monitor for ongoing updates. While the 8-K itself doesn't contain the detailed financial figures, it serves as the official notification of their release. The information is not deemed 'filed' for certain regulatory purposes, meaning it's primarily for informational disclosure rather than triggering specific liabilities under Section 18 of the Exchange Act. Investors are encouraged to access the attached press release for a comprehensive understanding of Workday's performance, including revenue, profitability, and any forward-looking statements or guidance provided.
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