How did Workday perform in fiscal 2026 and in the fourth quarter?

Workday grew total revenue 13.1% to $9.552 billion for fiscal 2026, and subscription revenue grew 14.5% to $8.833 billion. In Q4 alone, total revenue rose 14.5% to $2.532 billion and subscription revenue rose 15.7% to $2.360 billion, the faster quarterly growth rate suggesting momentum into fiscal 2027.

What is Workday's guidance for fiscal 2027?

Workday guides to fiscal 2027 subscription revenue of $9.925 to $9.950 billion, representing 12% to 13% growth, and a non-GAAP operating margin of about 30.0%. For Q1 fiscal 2027 (ending April 30, 2026), it expects subscription revenue of $2.335 billion (13% growth) and a 30.5% non-GAAP operating margin. Management is prioritizing investment in its agentic AI roadmap.

Is Workday's GAAP profitability improving, and what is driving the gap with non-GAAP results?

GAAP operating income improved to $721 million (7.5% margin) in fiscal 2026 from $415 million (4.9%). However, the gap with non-GAAP operating income ($2.824 billion, 29.6% margin) remains large, mainly due to share-based compensation of $1.570 billion excluding restructuring-related items, restructuring costs of $303 million, and amortization of acquisition intangibles. Restructuring costs rose sharply, which investors should monitor.

How strong is Workday's cash position and capital return activity?

Operating cash flow was $2.939 billion and free cash flow was $2.777 billion for fiscal 2026. Workday repurchased about 12.8 million Class A shares for $2.9 billion and ended the year with $5.443 billion in cash, cash equivalents and marketable securities, against roughly $2.98 billion of noncurrent debt. Acquisitions, including Paradox and Sana, consumed about $2.1 billion in cash during the year.

What does the leadership change and acquisition activity mean for investors?

Co-founder and chair Aneel Bhusri returned as CEO to lead the company's next phase, with the stated goal of bringing AI deeper into HR and finance workflows. Workday closed acquisitions including Paradox and Sana in fiscal 2026 and Pipedream, which expand its AI agent and integration capabilities. Investors should weigh the strategic upside against integration risk and the rising acquisition-related and restructuring costs.

WDAY 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 24, 2026. Cited figures are marked; the original filing is the authoritative source.

Workday (WDAY) reported fiscal fourth quarter and full-year 2026 results (quarter ended January 31, 2026) that show accelerating top-line momentum and strong cash generation.

Q4 total revenues were $2.532 billion^a, up 14.5% year-over-year, with subscription revenues of $2.360 billion, up 15.7%. For the full year, total revenues reached $9.552 billion (+13.1%) and subscription revenues $8.833 billion (+14.5%). Operating cash flow rose 19.4% to $2.939 billion and free cash flow rose 26.7% to $2.777 billion.

Total subscription revenue backlog was $28.101 billion^b (+12.2%), and 12-month backlog was $8.833 billion (+15.8%), with results partly boosted by the Paradox and Sana acquisitions. GAAP profitability remains thin but improved. Fiscal 2026 GAAP operating income was $721 million (7.5% margin) versus $415 million a year earlier, though restructuring charges rose to $303 million from $84 million.

Diluted GAAP EPS was $2.59^c for the year and $0.55 for Q4. Non-GAAP operating margin expanded to 29.6% for the year and 30.6% in Q4, and non-GAAP diluted EPS was $9.23 for the year. Capital returns were significant, with about 12.8 million Class A shares repurchased for $2.9 billion during the year.

Cash, equivalents and marketable securities totaled $5.443 billion^d at year-end. Guidance points to continued high-teens-to-low-teens growth with a margin focus. For fiscal 2027, Workday expects subscription revenues of $9.925 to $9.950 billion (12% to 13% growth) and a non-GAAP operating margin of about 30.0%.

Management said it is prioritizing investment in its agentic AI roadmap. Q1 fiscal 2027 guidance calls for subscription revenues of $2.335 billion (13% growth) and a 30.5% non-GAAP operating margin. The company also announced that co-founder Aneel Bhusri has returned as CEO, a leadership change investors will be watching closely.

02—Key points

Key Highlights

Q4 FY2026 total revenue of $2.532B (+14.5% YoY); subscription revenue of $2.360B (+15.7% YoY), signaling accelerating growth
FY2026 total revenue of $9.552B (+13.1%) and subscription revenue of $8.833B (+14.5%)
Operating cash flow of $2.939B (+19.4%) and free cash flow of $2.777B (+26.7%), reflecting strong cash conversion
Total subscription revenue backlog of $28.101B (+12.2%); 12-month backlog of $8.833B (+15.8%), partly aided by Paradox and Sana acquisitions
FY2027 guidance: subscription revenue of $9.925–$9.950B (12%–13% growth) and non-GAAP operating margin of ~30.0%
GAAP operating income rose to $721M from $415M, but restructuring charges increased to $303M from $84M
Repurchased ~12.8M Class A shares for $2.9B in FY2026; leadership change with co-founder Aneel Bhusri returning as CEO

03—Questions

Frequently Asked Questions

How did Workday perform in fiscal 2026 and in the fourth quarter?
Workday grew total revenue 13.1% to $9.552 billion for fiscal 2026, and subscription revenue grew 14.5% to $8.833 billion. In Q4 alone, total revenue rose 14.5% to $2.532 billion and subscription revenue rose 15.7% to $2.360 billion, the faster quarterly growth rate suggesting momentum into fiscal 2027.
What is Workday's guidance for fiscal 2027?
Workday guides to fiscal 2027 subscription revenue of $9.925 to $9.950 billion, representing 12% to 13% growth, and a non-GAAP operating margin of about 30.0%. For Q1 fiscal 2027 (ending April 30, 2026), it expects subscription revenue of $2.335 billion (13% growth) and a 30.5% non-GAAP operating margin. Management is prioritizing investment in its agentic AI roadmap.
Is Workday's GAAP profitability improving, and what is driving the gap with non-GAAP results?
GAAP operating income improved to $721 million (7.5% margin) in fiscal 2026 from $415 million (4.9%). However, the gap with non-GAAP operating income ($2.824 billion, 29.6% margin) remains large, mainly due to share-based compensation of $1.570 billion excluding restructuring-related items, restructuring costs of $303 million, and amortization of acquisition intangibles. Restructuring costs rose sharply, which investors should monitor.
How strong is Workday's cash position and capital return activity?
Operating cash flow was $2.939 billion and free cash flow was $2.777 billion for fiscal 2026. Workday repurchased about 12.8 million Class A shares for $2.9 billion and ended the year with $5.443 billion in cash, cash equivalents and marketable securities, against roughly $2.98 billion of noncurrent debt. Acquisitions, including Paradox and Sana, consumed about $2.1 billion in cash during the year.
What does the leadership change and acquisition activity mean for investors?
Co-founder and chair Aneel Bhusri returned as CEO to lead the company's next phase, with the stated goal of bringing AI deeper into HR and finance workflows. Workday closed acquisitions including Paradox and Sana in fiscal 2026 and Pipedream, which expand its AI agent and integration capabilities. Investors should weigh the strategic upside against integration risk and the rising acquisition-related and restructuring costs.

04—Continue

← View all 8-K filings