Summary
Workday, Inc.'s 2026 Form 10-K filing reveals a company experiencing robust revenue growth, driven primarily by its subscription services, which now constitute 92% of total revenues. The company has significantly expanded its artificial intelligence (AI) capabilities through strategic acquisitions, including Paradox and Sana, and continues to invest in platform development with initiatives like Workday Build and Workday Data Cloud. This focus on AI integration across its HCM and Financial Management solutions positions Workday to address complex business challenges and enhance customer productivity. The company's financial performance shows strong growth in total revenues, reaching $9.55 billion, a 13% increase year-over-year, with subscription services up 14% to $8.83 billion. While operating expenses have also risen, particularly due to restructuring activities and investments in growth areas, Workday has demonstrated improved profitability with GAAP operating income increasing by 74% to $721 million and Non-GAAP operating income up 29% to $2.82 billion. The company also generated substantial free cash flow of $2.8 billion, indicating strong operational cash generation. Workday's commitment to returning capital to shareholders is evident through significant share repurchases, totaling $2.9 billion in fiscal 2026.
Financial Highlights
52 data points| Revenue | $9.55B |
| R&D Expenses | $2.68B |
| Operating Expenses | $8.83B |
| Operating Income | $721.00M |
| Interest Expense | $114.00M |
| Net Income | $693.00M |
| EPS (Basic) | $2.61 |
| EPS (Diluted) | $2.59 |
| Shares Outstanding (Basic) | 265.10M |
| Shares Outstanding (Diluted) | 268.12M |
Key Highlights
- 1Total revenues increased by 13% year-over-year to $9.55 billion, with subscription services revenue growing 14% to $8.83 billion.
- 2GAAP operating income grew significantly by 74% to $721 million, and Non-GAAP operating income increased by 29% to $2.82 billion.
- 3The company made substantial strategic investments in AI through acquisitions of Paradox and Sana in fiscal 2026.
- 4Free cash flow generation was strong, reaching $2.8 billion, reflecting healthy operational cash flows.
- 5Workday repurchased approximately $2.9 billion of its Class A common stock in fiscal 2026, demonstrating a commitment to shareholder returns.
- 6The company is actively developing its AI platform with initiatives like Workday Build and Workday Data Cloud, integrating AI across its HCM and Finance solutions.
- 7Despite revenue growth, the company incurred significant restructuring charges totaling $303 million in fiscal 2026 related to workforce reductions and asset impairments.