01—Abstract
Summary
Summary of the 10-Q filed August 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Workday, Inc. (WDAY) reported solid financial results for the six months ended July 31, 2026, demonstrating continued revenue growth and improved profitability.
Total revenues increased by 13% year-over-year to $5.2 billiona, driven primarily by a 14% increase in subscription services revenue, which now constitutes approximately 93% of total revenue. The company's operating income significantly improved, with GAAP operating income increasing to $651 million from $287 million in the prior year period, leading to a GAAP operating margin of 12.5%. Non-GAAP operating income also showed strong growth, reaching $1.6 billion with a margin of 31.5%.
Cash flow generation remains robust, with operating activities providing $1.2 billionb. The company maintained a strong liquidity position with $3.4 billion in cash, cash equivalents, and marketable securities as of July 31, 2026.
Significant share repurchases were undertaken, with $2.9 billionc used in financing activities during the six-month period, reflecting a commitment to returning capital to shareholders. The company also authorized a new $4.0 billion share repurchase program in August 2026.
02—Key points
Key Highlights
- Total revenues increased by 13% to $5.2 billion for the six months ended July 31, 2026, compared to the prior year period.
- Subscription services revenue, the company's primary revenue driver, grew by 14% to $4.8 billion.
- GAAP operating income improved significantly, reaching $651 million, with a GAAP operating margin of 12.5%, up from 6.3% in the prior year.
- Non-GAAP operating income was $1.6 billion, with a healthy non-GAAP operating margin of 31.5%.
- Cash provided by operating activities was $1.2 billion for the first six months of the fiscal year.
- The company maintained a strong liquidity position with $3.4 billion in cash, cash equivalents, and marketable securities as of July 31, 2026.
- Significant share repurchases were executed, totaling $2.9 billion, and a new $4.0 billion share repurchase program was authorized in August 2026.
03—Questions
Frequently Asked Questions
How did Workday's revenue perform in the latest reporting period?
For the six months ended July 31, 2026, Workday's total revenues increased by 13% to $5.2 billion. Subscription services revenue, which is the core of their business, grew by 14% to $4.8 billion, indicating strong customer adoption and expansion.
What is the company's profitability trend?
Workday demonstrated a significant improvement in profitability. GAAP operating income rose to $651 million, resulting in a GAAP operating margin of 12.5%, a substantial increase from 6.3% in the same period last year. Non-GAAP operating income also showed strength, reaching $1.6 billion with a margin of 31.5%.
How is Workday managing its cash flow and liquidity?
The company generated $1.2 billion in cash from operating activities during the first six months of fiscal 2027. As of July 31, 2026, Workday maintained a robust liquidity position with $3.4 billion in cash, cash equivalents, and marketable securities, indicating strong financial health and flexibility.
What is Workday's approach to returning capital to shareholders?
Workday actively engaged in share repurchases, utilizing $2.9 billion in financing activities for this purpose during the six-month period. Furthermore, the company announced a new $4.0 billion share repurchase program in August 2026, signaling continued confidence and a commitment to shareholder returns.
04—Continue