Companies /Technology

Workday Inc - Class A

NASDAQ: WDAY Software - Application
$195.79
▼ $11.13 (−5.38%) today
Markets closed · 5:58pm ET

Q3 2026 Earnings

Reported Nov 25, 2025, 4:03pm ET · SEC source
$2.32
Beat +6.74%
EPS · est. $2.17
$2.4B
Beat +0.60%
Revenue · est. $2.4B
−0.3%
Trailing market
WDAY vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−8%−4%0Nov 25Nov 26report 4:03pm ETearnings+0.7%−8.5%
−12%−8%−4%0Nov 25Nov 26earnings+0.7%−8.5%
WDAY −8.5%S&P 500 +0.7%
−12%−8%−4%0Nov 25Nov 26report 4:03pm ETearnings+1.0%−8.5%
−12%−8%−4%0Nov 25Nov 26earnings+1.0%−8.5%
WDAY −8.5%NASDAQ +1.0%
−4%0+4%Nov 24Dec 3report 4:03pm ETearnings+1.3%−2.9%
−4%0+4%Nov 24Dec 3earnings+1.3%−2.9%
WDAY −2.9%S&P 500 +1.3%
−4%0+4%Nov 24Dec 3report 4:03pm ETearnings+2.4%−2.9%
−4%0+4%Nov 24Dec 3earnings+2.4%−2.9%
WDAY −2.9%NASDAQ +2.4%
−7.85%
Day of report
+0.13%
Next session
+0.59%
One week
+0.74%
30 days

S&P 500 over the same 30 days: +1.08%.

Did WDAY Beat Earnings? Q3 2026 Results

Workday delivered a clean beat on both lines in fiscal Q3 2026, with revenue of $2.43 billion growing 12.6% year-over-year and non-GAAP diluted EPS of $2.32 clearing the $2.17 consensus by 6.74%, reinforcing the narrative that the enterprise software giant is finding its stride amid a broader AI-driven HR and finance transformation. <a href="https://247wallst.com/investing/2025/11/25/wday-pre-earnings/">Heading into the print</a>, investors were watching closely for signs of subscription momentum, and Workday delivered, with subscription revenues reaching $2.24 billion, up 14.6% year-over-year, while 12-month subscription revenue backlog swelled 17.6% to $8.21 billion, partly aided by the Paradox acquisition. Non-GAAP operating margin expanded to 28.5% from 26.3% a year ago, and free cash flow surged to $550 million from $359 million. Looking ahead, management guided Q4 subscription revenues of $2.35 billion, representing 15.5% growth, with full-year FY2026 subscription revenue guidance updated to $8.83 billion at roughly 29% non-GAAP operating margin, signaling continued confidence in its AI-product pipeline.

Key Takeaways
  • Subscription revenue growth of 14.6% YoY driven by strength across AI portfolio
  • 12-month subscription revenue backlog up 17.6% YoY to $8.21 billion
  • Total subscription revenue backlog up 17.0% YoY to $25.96 billion
  • Non-GAAP operating margin expansion to 28.5% from 26.3% in the prior year quarter
  • Healthcare became sixth industry to cross $1 billion in annual recurring revenue
  • Paradox acquisition contributing to backlog growth

“Workday delivered another solid quarter, fueled by the strength and diversity of our business and the momentum we're seeing across our AI portfolio. By unifying people, money, and AI agents on one trusted platform, we're giving customers a real edge—helping them empower their people, simplify how work gets done, and drive results that truly matter.”

Workday CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2026, Workday expects subscription revenues of $2.355 billion, representing growth of 15.5%, and non-GAAP operating margin of at least 28.5%. For the full fiscal year 2026, the company updated guidance to subscription revenues of $8.828 billion, representing growth of 14.4%, and non-GAAP operating margin of approximately 29%.

WDAY YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$700.0M$1.4B$2.1B$2.2B$2.4BRevenue$1.6B$1.8BGross Profit$165.0M$259.0MOperating Income$193.0M$252.0MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

WDAY Revenue by Segment

Subscription Services$2.2B+14.6%
Professional Services$188.0M

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