The combination of strong revenue growth, margin expansion, and bullish guidance suggests Workday's AI strategy is gaining traction. Traders should monitor subscription backlog growth and AI adoption metrics in future quarters as leading indicators of sustained momentum.
Price Chart
Executive Summary
Workday reported strong fiscal 2026 results with full-year revenue of $9.552 billion (up 13.1% YoY) and subscription revenue of $8.833 billion (up 14.5% YoY). Non-GAAP operating margin expanded to 29.6% from 25.9%, and the company guided to 12-13% subscription revenue growth for fiscal 2027. The results reflect successful AI integration, customer growth, and operational efficiency, offset by higher restructuring costs.
Key Financial Metrics
Key Facts
- Fiscal 2026 total revenue: $9.552 billion (13.1% YoY growth); subscription revenue: $8.833 billion (14.5% YoY growth)
- Non-GAAP operating margin improved to 29.6% from 25.9% in fiscal 2025
- Fiscal 2027 subscription revenue guidance: $9.925-$9.950 billion (12-13% growth)
- Free cash flow grew 26.7% to $2.777 billion
- Repurchased $2.9 billion in shares and acquired Pipedream, Paradox, and Sana
Financial Impact
Revenue growth of 13.1% and operating margin expansion of 370 bps demonstrate strong execution. $2.777 billion in free cash flow supports continued investment and shareholder returns.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Subscription Services | $8.8K | +14.5% |
| Professional Services | $719.00 | -1.2% |
Risk Factors
- Increased restructuring costs ($303M in fiscal 2026 vs $84M in prior year) could pressure near-term profitability
- Heavy investment in AI roadmap may impact short-term margins
- Integration risks from multiple acquisitions (Pipedream, Paradox, Sana)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 11 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (WDAY) — Batch item 1 | 0001327811-26-000010 |
| Document: wday-20260224.htm | 0001327811-26-000010 |
| Document: 0001327811-26-000010-index-headers.html | 0001327811-26-000010 |
| Document: 0001327811-26-000010-index.html | 0001327811-26-000010 |
| Document: 0001327811-26-000010.txt | 0001327811-26-000010 |
| 8-K Filing (WDAY) — Batch item 6 | 0001327811-26-000010 |
| Document: wday-20260224.htm | 0001327811-26-000010 |
| Document: 0001327811-26-000010-index-headers.html | 0001327811-26-000010 |
| Document: 0001327811-26-000010-index.html | 0001327811-26-000010 |
| Document: 0001327811-26-000010.txt | 0001327811-26-000010 |
| CONTEXT: Previous Earnings (2026-02-24) | 0001327811-26-000010 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | Press Release | $204.72 $188.60 | ▼ −7.87% | ▼ −8.13% | $186.14 (−9.08%) |
Jul 14, 2026 11w ago | Insider Cluster | $141.82 $175.29 | ▲ +23.60% | ▲ +21.26% | $186.14 (+31.25%) |
Jul 13, 2026 11w ago | Insider Cluster | $144.87 $184.19 | ▲ +27.14% | ▲ +23.96% | $186.14 (+28.49%) |
Jul 7, 2026 12w ago | Insider Cluster | $137.88 $170.64 | ▲ +23.76% | ▲ +20.48% | $186.14 (+35.00%) |
Jul 7, 2026 12w ago | Insider Cluster | $143.65 $165.05 | ▲ +14.90% | ▲ +13.57% | $186.14 (+29.58%) |
Jun 25, 2026 14w ago | 144 | $124.21 $127.87 | ▲ +2.95% | ▲ +1.69% | $186.14 (+49.86%) |
Jun 22, 2026 14w ago | 144 | $115.13 $147.22 | ▲ +27.87% | ▲ +26.71% | $186.14 (+61.68%) |
Jun 13, 2026 15w ago | Institutional Cluster | $129.60 $144.87 | ▼ −11.78% | ▼ −12.53% | $186.14 (−43.63%) |
Jun 12, 2026 15w ago | 144 | $129.60 $144.87 | ▲ +11.78% | ▲ +12.53% | $186.14 (+43.63%) |
Jun 9, 2026 16w ago | 144 | $137.47 $138.34 | ▲ +0.63% | ▼ −2.99% | $186.14 (+35.40%) |
US Market Status
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