10-KPeriod: FY2026

Workday, Inc. Annual Report, Year Ended Jan 31, 2026

Filed March 6, 2026For Securities:WDAY

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
Beta

Revenue

$9.55B

Net Income

$693.00M

7.3% Net Margin

EPS (Diluted)

$2.59

Total Assets

$18.07B

Cash & Equivalents

$1.51B

Free Cash Flow

$2.78B

Financial Statements
Beta
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.

Frequently Asked Questions

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.

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.

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.

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.