Companies /Technology

Workday Inc - Class A

NASDAQ: WDAY Software - Application
$195.79
▼ $11.13 (−5.38%) today
Markets closed · 3:21am ET

Q1 2026 Earnings

Reported May 22, 2025, 4:04pm ET · SEC source
$2.23
Beat +10.99%
EPS · est. $2.01
$2.2B
Beat +1.05%
Revenue · est. $2.2B
−6.0%
Trailing market
WDAY vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%May 22May 23report 4:04pm ETearnings−0.8%−10.0%
−8%−4%0+4%May 22May 23earnings−0.8%−10.0%
WDAY −10.0%S&P 500 −0.8%
−8%−4%0+4%May 22May 23report 4:04pm ETearnings−1.2%−10.0%
−8%−4%0+4%May 22May 23earnings−1.2%−10.0%
WDAY −10.0%NASDAQ −1.2%
−8%−4%0+4%May 21May 30report 4:04pm ETearnings+0.9%−3.2%
−8%−4%0+4%May 21May 30earnings+0.9%−3.2%
WDAY −3.2%S&P 500 +0.9%
−8%−4%0+4%May 21May 30report 4:04pm ETearnings+0.9%−3.2%
−8%−4%0+4%May 21May 30earnings+0.9%−3.2%
WDAY −3.2%NASDAQ +0.9%
−12.52%
Day of report
+0.54%
Next session
+4.09%
One week
−0.34%
30 days

S&P 500 over the same 30 days: +5.66%.

Did WDAY Beat Earnings? Q1 2026 Results

Workday delivered a strong fiscal first quarter for 2026, beating Wall Street expectations on both the top and bottom lines as subscription growth and widening margins powered results ahead of estimates. The enterprise software company posted non-GAAP diluted EPS of $2.23, clearing the $2.01 consensus by 10.99%, while total revenue climbed 12.6% year over year to $2.24 billion, edging past the $2.22 billion estimate. The primary engine behind the outperformance was subscription revenue, which grew 13.4% to $2.06 billion, supported by an expanding backlog that reached $24.62 billion in total, up 19.1% year over year, signaling durable future demand. Non-GAAP operating margin expanded to 30.2% from 25.9% a year ago, reflecting efficiency gains tied in part to the February 2025 restructuring that reduced headcount by roughly 7.5%. Looking ahead, Workday reiterated its FY2026 subscription revenue target of $8.80 billion while raising its full-year non-GAAP operating margin guidance to approximately 28.5%, a contrast to peers that have recently withheld forward guidance amid macroeconomic uncertainty.

Key Takeaways
  • Strong subscription revenue growth of 13.4% year over year
  • Non-GAAP operating margin expansion to 30.2% from 25.9% year over year
  • 12-month subscription revenue backlog grew 15.6% to $7.63 billion
  • Total subscription revenue backlog grew 19.1% to $24.62 billion
  • Technology & media and manufacturing verticals each crossed $1 billion in annual recurring revenue

“Workday delivered another solid quarter, a testament to the durability of our business and the relevance of our platform as CEOs increasingly turn to us to drive efficiency, agility, and growth. We are delivering real ROI for our customers by helping them effectively manage their most critical assets—people and money—on one unified platform with AI at the core.”

Workday CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2026 (ending July 31, 2025), Workday expects subscription revenue of $2.160 billion, representing 13.5% growth, and non-GAAP operating margin of 28.0%. For full-year FY2026 (ending January 31, 2026), the company reiterated subscription revenue guidance of $8.800 billion, representing 14.0% growth, while raising non-GAAP operating margin guidance to approximately 28.5%.

WDAY YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$700.0M$1.4B$2.1B$2.0B$2.2BRevenue$64.0M$39.0MOperating Income$107.0M$68.0MNet Income
$0$700.0M$1.4B$2.1BRevenueOperating IncomeNet Income

WDAY Revenue by Segment

Subscription Services$2.1B+13.4%
Professional Services$181.0M

Figures from SEC filings and company reports. Not investment advice.