Companies /Technology

Workday Inc - Class A

NASDAQ: WDAY Software - Application
$195.79
▼ $11.13 (−5.38%) today
Markets closed · 5:28pm ET

Q1 2027 Earnings

Reported May 21, 2026, 4:02pm ET · SEC source
$2.66
Beat +5.68%
EPS · est. $2.52
$2.5B
Beat +1.01%
Revenue · est. $2.5B
−9.7%
Trailing market
WDAY vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0May 21May 22report 4:02pm ETearnings+0.2%−4.0%
−8%−4%0May 21May 22earnings+0.2%−4.0%
WDAY −4.0%S&P 500 +0.2%
−8%−4%0May 21May 22report 4:02pm ETearnings+0.2%−4.0%
−8%−4%0May 21May 22earnings+0.2%−4.0%
WDAY −4.0%NASDAQ +0.2%
−6%0+6%May 20May 29report 4:02pm ETearnings+1.8%+9.7%
−6%0+6%May 20May 29earnings+1.8%+9.7%
WDAY +9.7%S&P 500 +1.8%
−6%0+6%May 20May 29report 4:02pm ETearnings+3.3%+9.7%
−6%0+6%May 20May 29earnings+3.3%+9.7%
WDAY +9.7%NASDAQ +3.3%
+5.16%
Day of report
−3.22%
Next session
+22.70%
One week
−11.21%
30 days

S&P 500 over the same 30 days: −1.52%.

Did WDAY Beat Earnings? Q1 2027 Results

Workday kicked off fiscal 2027 on a confident note, posting first-quarter results that beat Wall Street on both the top and bottom lines and marking the company's fourth consecutive quarter of consensus EPS beats. Non-GAAP diluted EPS of $2.66 cleared the $2.52 consensus estimate by 5.68%, while revenue of $2.54 billion rose 13.5% year-over-year, edging past expectations by 1.01%, with subscription revenue, the core engine of the business, growing 14.3% to $2.35 billion. <a href="https://247wallst.com/investing/2026/05/21/live-workday-reports-q1-earnings-tonight-in-first-quarter-under-new-ceo/">This quarter</a> arrived under the watch of returning CEO Aneel Bhusri, who framed the results as validation of Workday's AI positioning, pointing to more than 4,000 customers now using at least one agentic AI product. Margin discipline added to the story, with non-GAAP operating margin expanding to 31.8% from 30.2% a year ago, prompting management to lift its full-year non-GAAP operating margin guidance to 30.5% while reiterating subscription revenue guidance of $9.93 billion to $9.95 billion for the full fiscal year.

Key Takeaways
  • Subscription revenue growth of 14.3% year-over-year driven by ongoing customer adoption across the platform
  • Non-GAAP operating margin expanded to 31.8% from 30.2%, reflecting operational efficiency gains
  • 12-month subscription revenue backlog grew 15.5% to $8.806 billion, indicating strong forward demand
  • Over 4,000 customers now using at least one organically developed AI agent, more than doubling quarter-over-quarter
  • Recruiting Agent supported 14 million hiring processes, up 44% year-over-year
  • Share repurchases of approximately 12 million shares reduced diluted share count significantly

“We had a great Q1, and it makes one thing clear: Workday is ready for this AI moment. Our core business is strong, our AI strategy is working, and we're moving with the speed and focus required to lead.”

Workday CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2027 (ending July 31, 2026), Workday guides subscription revenues of $2.455 billion, representing 13% growth, with a non-GAAP operating margin of 30.0%. For full-year FY2027 (ending January 31, 2027), the company reiterates subscription revenue guidance of $9.925 billion to $9.950 billion, representing 12% to 13% growth, while raising non-GAAP operating margin guidance to 30.5%. Management's focus remains on executing on the agentic AI roadmap while driving operational efficiencies at scale.

WDAY YoY Financials

Q1 2027 vs Q1 2026 · SEC filings Q1 2026 Q1 2027
$0$700.0M$1.4B$2.1B$2.2B$2.5BRevenue$1.7B$1.9BGross Profit$39.0M$338.0MOperating Income$68.0M$222.0MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

WDAY Revenue by Segment

Subscription Services$2.4B+14.3%
Professional Services$188.0M+3.9%

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