01—Abstract
Summary
Summary of the 10-K filed March 6, 2026. Cited figures are marked; the original filing is the authoritative source.
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%a 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 billionb, 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 millionc 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.
02—Key points
Key Highlights
- Total revenues increased by 13% year-over-year to $9.55 billion, with subscription services revenue growing 14% to $8.83 billion.
- GAAP operating income grew significantly by 74% to $721 million, and Non-GAAP operating income increased by 29% to $2.82 billion.
- The company made substantial strategic investments in AI through acquisitions of Paradox and Sana in fiscal 2026.
- Free cash flow generation was strong, reaching $2.8 billion, reflecting healthy operational cash flows.
- Workday repurchased approximately $2.9 billion of its Class A common stock in fiscal 2026, demonstrating a commitment to shareholder returns.
- The company is actively developing its AI platform with initiatives like Workday Build and Workday Data Cloud, integrating AI across its HCM and Finance solutions.
- Despite revenue growth, the company incurred significant restructuring charges totaling $303 million in fiscal 2026 related to workforce reductions and asset impairments.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 6, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $9.55B$8.45B | +13.1% |
| R&D Expenses | $2.68B$2.63B | +2.0% |
| Operating Expenses | $8.83B$8.03B | +10.0% |
| Operating Income | $721.00M$415.00M | +73.7% |
| Interest Expense | $114.00M$114.00M | 0.0% |
| Net Income | $693.00M$526.00M | +31.7% |
| EPS (Basic) | $2.61$1.98 | +31.8% |
| EPS (Diluted) | $2.59$1.95 | +32.8% |
| Shares Outstanding (Basic) | 265.10M265.26M | −0.1% |
| Shares Outstanding (Diluted) | 268.12M269.20M | −0.4% |
05—Questions
Frequently Asked Questions
What is Workday's primary growth driver?
Workday's primary growth driver is its subscription services, which accounted for 92% of total revenues in fiscal 2026. The company is expanding its customer base and deepening relationships with existing customers through increased adoption of its cloud-based HCM and Financial Management solutions.
How is Workday leveraging Artificial Intelligence (AI)?
Workday is heavily integrating AI across its platform, including for its HCM and Financial Management solutions. In fiscal 2026, it acquired companies like Paradox and Sana to enhance its AI capabilities. Initiatives like Workday Build and Workday Data Cloud further underscore its commitment to AI-powered solutions and agent development to improve business processes and customer experiences.
What is Workday's financial health and outlook based on this filing?
Workday demonstrates strong financial health with significant revenue growth, improved operating income (both GAAP and non-GAAP), and robust free cash flow generation. The company is investing in strategic growth areas, particularly AI, and continues to return capital to shareholders through share repurchases. While facing some macroeconomic headwinds that are lengthening sales cycles, the company's core business performance appears strong.
What significant restructuring activities did Workday undertake?
Workday undertook significant restructuring in fiscal 2026, including workforce reductions (approximately 7.5% of its workforce) and exiting certain office spaces. An additional restructuring plan was announced in February 2026, impacting about 2% of the workforce. These actions resulted in substantial restructuring charges of $303 million in fiscal 2026.
06—Continue