Workday, Inc. , a leading AI-powered platform for managing people, money, and agents, reported strong first-quarter results for fiscal 2026, showcasing sustained growth in subscription revenue and strategic momentum across its AI and cloud offerings.
Financial Highlights – Q1 FY2026
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Total Revenue: $2.240 billion, up 12.6% YoY
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Subscription Revenue: $2.059 billion, up 13.4% YoY
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GAAP Operating Income: $39 million (1.8% of revenue), impacted by $166 million in restructuring expenses
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Non-GAAP Operating Income: $677 million (30.2% of revenue), up from $515 million (25.9%) YoY
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Diluted EPS: $0.25 (GAAP), $2.23 (Non-GAAP), compared to $0.40 (GAAP) and $1.74 (Non-GAAP) in Q1 FY2025
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12-Month Subscription Backlog: $7.63 billion, up 15.6% YoY
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Total Subscription Backlog: $24.62 billion, up 19.1% YoY
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Free Cash Flow: $421 million, up from $291 million YoY
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Share Repurchase: 1.3 million shares repurchased for $293 million
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Cash Reserves: $7.97 billion as of April 30, 2025
Executive Commentary
Carl Eschenbach, CEO:
“Workday’s strong start to the year reflects our platform’s growing importance in driving efficiency and agility. Our unified AI-powered solution is delivering tangible ROI for customers managing their most vital assets—people and capital.”
Zane Rowe, CFO:
“We’re proud of our performance amid macro uncertainty. With continued momentum in strategic growth areas, we’re maintaining our $8.8 billion subscription revenue target and raising our non-GAAP operating margin forecast to 28.5%.”
Recent Strategic Milestones
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AI Innovation: Launched new Illuminate Agents to streamline hiring, financial processes, and workforce engagement.
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Partnership Expansion: Added Evisort’s AI contract intelligence to its ecosystem.
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New Customer Wins: Dover Corp., Mutual of Omaha, United Airlines.
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Expanded Relationships: ASDA, Chipotle, CVS Health, and Decathlon.
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Industry Recognition:
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Named a Leader in Gartner’s 2025 Magic Quadrant for Higher Education and Talent Acquisition Suites
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Recognized as one of the World’s Most Ethical Companies® for the 5th consecutive year
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Vertical Growth: Tech & media and manufacturing each topped $1B in annual recurring revenue
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Global Expansion: New EMEA HQ in Dublin and AWS U.K. cloud deployment
Outlook
Q2 FY2026 Guidance:
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Subscription Revenue: $2.160 billion (13.5% YoY growth)
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Non-GAAP Operating Margin: 28.0%
Full-Year FY2026 Guidance:
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Subscription Revenue: $8.800 billion (14.0% YoY growth)
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Non-GAAP Operating Margin: 28.5%
Workday’s Q1 performance underscores its robust financial foundation and strategic clarity, particularly in navigating macroeconomic headwinds. With AI at its core and a deepening global footprint, Workday is poised for continued enterprise adoption and margin expansion.
