Summary
Workday, Inc. reported strong financial results for the first quarter of fiscal year 2027 (ended April 30, 2026). Total revenues increased by 13% year-over-year to $2.54 billion, driven by a 14% increase in subscription services revenue. The company demonstrated significant operational leverage, with GAAP operating income soaring to $338 million, up from $39 million in the prior year period. This improvement was fueled by revenue growth outpacing expense growth and a substantial reduction in restructuring costs. Key financial strengths include robust operating cash flow of $696 million and free cash flow of $616 million, both showing significant year-over-year improvements. The company's subscription revenue backlog stands at a healthy $27.3 billion, indicating strong future revenue potential. Workday continues to actively manage its capital, evidenced by substantial share repurchases totaling $1.6 billion during the quarter, while maintaining a strong liquidity position with $4.4 billion in cash, cash equivalents, and marketable securities.
Financial Highlights
51 data points| Revenue | $2.54B |
| R&D Expenses | $705.00M |
| Operating Expenses | $2.20B |
| Operating Income | $338.00M |
| Interest Expense | $29.00M |
| Net Income | $222.00M |
| EPS (Basic) | $0.87 |
| EPS (Diluted) | $0.87 |
| Shares Outstanding (Basic) | 253.89M |
| Shares Outstanding (Diluted) | 254.31M |
Key Highlights
- 1Total revenues grew 13% to $2.54 billion, with subscription services revenue up 14% to $2.35 billion.
- 2GAAP operating income surged to $338 million (13.3% operating margin), a significant improvement from $39 million (1.8% operating margin) in the prior year.
- 3Net income increased substantially to $222 million, resulting in diluted EPS of $0.87, compared to $68 million and $0.25, respectively, in the prior year.
- 4Operating cash flow was strong at $696 million, up 52% year-over-year.
- 5Free cash flow increased by 46% to $616 million.
- 6Total subscription revenue backlog reached $27.3 billion, indicating robust future revenue streams.
- 7The company repurchased $1.6 billion of its Class A common stock during the quarter, demonstrating a commitment to returning capital to shareholders.