Workday, Inc.WDAY
Workday, Inc. Financial Overview 2021–2025
In FY2024, Workday achieved a remarkable turnaround, swinging from a $222 million operating loss the prior year to a $183 million operating profit. This pivot to GAAP profitability signals that the company’s long-term investments in scale are now generating significant operating leverage, even as top-line growth continues. The company's revenue has nearly doubled in recent years, climbing from $4.3 billion in FY2021 to $8.4 billion in FY2025, illustrating a clear and successful expansion arc.
This financial maturation did not come at the expense of growth. In FY2025, revenues grew 16% to $8.4 billion, while operating income surged 127% to $415 million. Underpinning this performance is a highly predictable subscription model, boasting a gross revenue retention rate of approximately 98% and a massive $25.1 billion subscription revenue backlog. Reflecting high expectations for continued earnings expansion, the market valued the company at a premium; its stock traded at 134.4x earnings at the close of FY2025.
Recent Developments (Q2 and Q3 2026)
Workday saw a significant leadership change in February 2026, with co-founder Aneel Bhusri returning to the CEO role. The move coincided with a new restructuring plan set to incur a $135 million charge in Q4 2026 and impact 2% of its workforce. Through Q3 2026, performance was consistent, with total revenues growing 13% year-over-year, supported by a subscription backlog that expanded 17% to $26.0 billion. The company also bolstered its AI capabilities by acquiring Paradox for $1.0 billion and Sana Labs, while authorizing a new $4.0 billion share repurchase program.
The bull case sees these strategic AI acquisitions fueling future expansion, but the bear case points to execution risk from the CEO transition and restructuring, particularly given the stock’s valuation at 110.4x earnings as of the Q3 2026 report.
What to watch: integration of the Paradox and Sana Labs acquisitions; margin impact from the Q4 2026 restructuring.
Rev
$8.45B
FY2025
NI
$526.0M
FY2025
EPS
$1.98
FY2025
OCF
$2.46B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
Workday, Inc. 8-K Report, Executive Changes (Feb 9, 2026)
Workday, Inc. (WDAY) announced a significant leadership change via an 8-K filing on February 8, 2026. Effective February 6, 2026, co-founder and Executive Chair Aneel Bhusri has been appointed as the new Chief Executive Officer (CEO). He will retain his role as Chair of the Board. This transition sees Carl Eschenbach stepping down as CEO and resigning from the Board. Mr. Bhusri, a key figure since Workday's inception, brings extensive experience back to the CEO role, having previously held various executive positions including co-CEO and CEO. The filing also details Mr. Bhusri's compensation package, which includes a base salary, significant equity awards (RSUs and performance-based RSUs), and eligibility for the company's severance policy. Concurrently, Mr. Eschenbach's separation agreement is outlined, including a cash payment and accelerated vesting of certain equity awards.
Workday, Inc. 8-K Report, Financial Results (Feb 4, 2026)
Workday, Inc. (WDAY) has filed an 8-K report on February 4, 2026, providing updates on its financial outlook and operational adjustments. The company expects its fiscal 2026 fourth-quarter and full-year financial results to be largely in line with previous guidance, with a notable adjustment to its GAAP operating margin. This adjustment is driven by significant restructuring charges related to workforce reorganization and asset impairment. These restructuring efforts involve eliminating approximately 2% of the workforce, primarily in non-revenue generating Global Customer Operations roles, to better align resources for fiscal 2027. Workday anticipates incurring approximately $135 million in charges in Q4 FY2026, including severance, stock-based compensation, and non-cash asset impairments. Despite these charges, the company plans to continue hiring in strategic, revenue-generating areas. Investors should monitor the actual realization of these charges and the impact of the restructuring on future operational efficiency and growth.
Workday, Inc. 8-K Report, Financial Results (Nov 25, 2025)
Workday, Inc. (WDAY) has filed an 8-K report on November 25, 2025, to announce its financial results for the fiscal third quarter ended October 31, 2025. The press release, included as an exhibit, details the company's performance during the period. Investors should note that the information provided is being furnished and not deemed "filed" under Section 18 of the Exchange Act, nor incorporated by reference into other filings unless specifically stated. While the 8-K itself does not contain the detailed financial figures, it directs investors to the accompanying press release for the complete results of operations and financial condition for the third quarter of fiscal year 2026. Investors are encouraged to review this press release for specific revenue, profitability, and other key financial metrics that will inform their investment decisions regarding Workday.
Workday, Inc. 8-K Report, Corporate Update (Sep 17, 2025)
Workday, Inc. (WDAY) announced a significant new share repurchase program, authorizing up to an additional $4.0 billion of its Class A common stock. This program, coupled with the remaining $1.2 billion under existing authorizations as of July 31, 2025, signals Workday's intent to repurchase approximately $5.0 billion of its stock through fiscal 2027. This substantial capital return initiative indicates management's confidence in the company's financial health and future prospects, and suggests a belief that the company's stock may be undervalued. Investors should note that the repurchase program has no expiration date and can be modified or terminated at the company's discretion. The repurchases will be executed through various methods, including open market purchases and Rule 10b5-1 trading plans, with the timing and total amount subject to market conditions and business considerations. While this program can be accretive to earnings per share by reducing the number of outstanding shares, it also means less capital will be available for other strategic investments or debt reduction.
Workday, Inc. 8-K Report, Corporate Update (Sep 16, 2025)
Workday, Inc. (WDAY) has announced the signing of a definitive agreement to acquire Sana Labs AB ("Sana"), a move that signals a significant strategic expansion for Workday in the corporate learning and development space. The acquisition is subject to customary closing conditions and is expected to enhance Workday's existing offerings by integrating Sana's advanced learning management system capabilities. This transaction represents an opportunity for Workday to bolster its human capital management suite by adding robust learning solutions, potentially driving further adoption and customer value. Investors should monitor the satisfaction of closing conditions and the integration progress, as the success of this acquisition could impact Workday's competitive positioning and future financial performance. The company has provided forward-looking statements outlining potential benefits and risks associated with the acquisition, emphasizing the importance of careful consideration of these factors.
View all 8-K filings →