Workday, Inc.'s Stock Analysis

Workday Reports Fiscal 2026 Fourth Quarter Financial Results

Workday, Inc. reported total revenues of $2.532 billion for the fourth quarter of fiscal 2026, reflecting a 14.5% increase year-over-year. Subscription revenues reached $2.360 billion, up 15.7% from the previous year. The company achieved an operating income of $174 million, representing 6.9% of revenues, and a diluted net income per share of $0.55, compared to $0.35 in the same period last year. For the full fiscal year 2026, total revenues were $9.552 billion, a 13.1% increase, with subscription revenues of $8.833 billion, up 14.5% year-over-year, and operating income of $721 million, or 7.5% of revenues.

Additionally, Workday generated operating cash flows of $2.939 billion, a 19.4% increase from fiscal 2025, and free cash flows of $2.777 billion, up 26.7%. The company repurchased approximately 12.8 million shares for $2.9 billion and reported cash and cash equivalents of $5.443 billion as of January 31, 2026. Workday also noted a 12-month subscription revenue backlog of $8.833 billion, increasing by 15.8% year-over-year, and a total subscription revenue backlog of $28.101 billion, up 12.2% from the previous year.

Feb 24, 2026 16:02:19

Workday Appoints Aneel Bhusri as New CEO, Carl Eschenbach Resigns

Workday, Inc. has appointed co-founder Aneel Bhusri as Chief Executive Officer effective February 6, 2026, following the resignation of Carl Eschenbach from the CEO position and the Board. Bhusri, who has extensive experience with Workday since its founding, will also continue as Chair of the Board. His compensation includes a base salary of $1,250,000, an annual cash bonus target of up to 200% of his base salary, and significant equity awards under the company’s 2022 Equity Incentive Plan, including a $60 million restricted stock unit and a performance-based RSU valued at $75 million, contingent on stock price targets and his continued service.

In conjunction with this leadership transition, Workday reaffirmed its fiscal 2026 fourth-quarter and full-year financial outlook, indicating that results are expected to align with previous guidance. Eschenbach will remain with the company as a strategic advisor following his departure. The company plans to report its fiscal 2026 fourth-quarter and full-year financial results on February 24, 2026, after market close.

Feb 09, 2026 08:31:59

Workday Reports Changes in Workforce and Financial Expectations

Workday, Inc. anticipates that its fiscal 2026 fourth quarter and full-year financial results will align with previous guidance, except for a significant decrease in its GAAP operating margin. The company expects the fourth quarter GAAP operating margin to be 24 to 25 percentage points lower than the non-GAAP margin, and the full-year GAAP operating margin to be 22 to 23 percentage points lower than the non-GAAP margin. Workday plans to report these results on February 24, 2026.

In a move to better align resources, Workday announced it will eliminate approximately 2% of its workforce, primarily in non-revenue roles. The company estimates incurring about $135 million in charges related to these reorganizations, which include severance and impairment costs. The changes are expected to be largely completed by the first quarter of fiscal 2027, subject to legal requirements. Workday also plans to continue hiring in strategic areas to capitalize on market opportunities.

Feb 04, 2026 16:04:46

Workday Reports Fiscal Q3 2026 Revenue and Income Growth

Workday, Inc. announced its fiscal 2026 third quarter results, reporting total revenues of $2.432 billion, a 12.6% increase year-over-year, with subscription revenues rising 14.6% to $2.244 billion. The company achieved an operating income of $259 million, representing 10.7% of revenues, and a diluted net income per share of $0.94, up from $0.72 in the same quarter last year. Non-GAAP operating income reached $692 million, or 28.5% of revenues, compared to $569 million, or 26.3%, in the prior year period. Workday also reported a subscription revenue backlog of $8.21 billion, a 17.6% increase year-over-year.

In addition to financial results, Workday highlighted recent business developments, including the acquisition of Paradox and the establishment of an AI Centre of Excellence in Dublin, Ireland. The company has also expanded its customer base and partnerships, notably with Microsoft, and launched new AI-driven products. As part of its fiscal 2026 guidance, Workday expects subscription revenues of approximately $8.828 billion, reflecting a growth of 14.4%. The firm ended the quarter with $6.84 billion in cash and equivalents, and reported operating cash flows of $588 million, compared to $406 million in the same quarter last year.

Nov 25, 2025 16:03:30

Workday Announces $4 Billion Share Repurchase Program

On September 16, 2025, Workday's Board of Directors approved a new share repurchase program, allowing for the repurchase of up to $4.0 billion of its Class A common stock. This program does not have an expiration date and can be suspended or discontinued at any time. As of July 31, 2025, there was approximately $1.2 billion remaining from previous authorizations for share repurchases, with a total intention to repurchase about $5.0 billion through fiscal 2027.

Workday plans to conduct these repurchases through various methods, including open market purchases and privately negotiated transactions, in compliance with applicable laws. The actual timing and amount of repurchases will be influenced by various factors such as market conditions and stock prices. The company has no obligation to acquire a specific amount of stock under this program.

Sep 16, 2025 19:47:25

Workday to Acquire Sana for $1.1 Billion in Cash

Workday, Inc. has entered into a definitive agreement to acquire Sana Labs AB for approximately $1.1 billion. The acquisition aims to enhance Workday's offerings by integrating Sana's AI-powered tools, which focus on improving employee experiences and productivity. The deal is expected to close in the fourth quarter of Workday's fiscal year 2026, pending customary closing conditions.

Sana has developed tools such as Sana Learn and Sana Agents, which have been utilized by over one million users across various enterprises. The integration of these tools into Workday's platform is anticipated to create a more personalized and proactive work environment, potentially improving operational efficiencies and employee engagement. Workday's acquisition of Sana reflects its strategy to leverage AI in streamlining workflows and enhancing learning capabilities within organizations.

Sep 16, 2025 09:08:45

Workday Announces Acquisition of Paradox for Talent Acquisition Suite

Workday, Inc. has entered into a definitive agreement to acquire Paradox, Inc., which specializes in conversational AI for recruitment processes. This acquisition aims to enhance Workday's offerings by integrating Paradox's AI-powered talent acquisition suite, facilitating more efficient hiring and onboarding processes across various job types. The acquisition is expected to close in the third quarter of Workday’s fiscal year 2026, pending regulatory approvals and other conditions.

Paradox's technology has demonstrated significant improvements in candidate engagement, reducing time-to-hire and increasing applicant flow for its clients. The merger is positioned to strengthen Workday's capabilities in high-volume hiring, particularly in frontline industries. Workday's acquisition of Paradox is seen as a strategic move to enhance its competitive edge in the talent management sector, potentially impacting its operational results and share price.

Aug 21, 2025 16:06:10

Workday Reports Fiscal Q2 2026 Financial Results and Guidance

Workday, Inc. announced its financial results for the second quarter of fiscal 2026, reporting total revenues of $2.348 billion, a 12.6% increase year-over-year. Subscription revenues rose to $2.169 billion, up 14.0% from the previous year. The company achieved an operating income of $248 million, representing 10.6% of revenues, and a diluted net income per share of $0.84, compared to $0.49 in the same quarter last year. The 12-month subscription revenue backlog also increased to $7.91 billion, reflecting a 16.4% growth from the prior year. Workday's cash, cash equivalents, and marketable securities totaled $8.19 billion as of July 31, 2025.

Looking ahead, Workday provided guidance for the fiscal 2026 third quarter, projecting subscription revenues of $2.235 billion, an increase of 14.1%. For the full fiscal year, the company updated its subscription revenue forecast to $8.815 billion, indicating a growth of 14.2%, while maintaining a non-GAAP operating margin guidance of approximately 29%. Recent business highlights included new customer acquisitions and expansions, as well as strategic partnerships aimed at enhancing their AI capabilities and services.

Aug 21, 2025 16:05:21

Workday Reports Q1 2026 Revenue Growth Amid Restructuring Costs

Workday, Inc. announced its fiscal 2026 first quarter results, reporting total revenues of $2.240 billion, a 12.6% increase year over year. Subscription revenues reached $2.059 billion, up 13.4% from the previous year. However, the company faced a decrease in operating income to $39 million, impacted by $166 million in restructuring expenses. Non-GAAP operating income improved to $677 million, or 30.2% of revenues, compared to $515 million, or 25.9%, in the same period last year. The 12-month subscription revenue backlog also increased by 15.6% to $7.63 billion, while total subscription revenue backlog rose 19.1% to $24.62 billion.

The company reported diluted net income per share at $0.25, down from $0.40 in the same quarter last year, also affected by restructuring expenses. Non-GAAP diluted net income per share increased to $2.23 from $1.74 year-over-year. Workday's operating cash flows were $457 million, up from $372 million in the prior year, with free cash flows at $421 million compared to $291 million last year. The company announced a new share repurchase program to buy back up to $1 billion of its Class A common stock, indicating a commitment to returning value to shareholders.

May 22, 2025 16:04:39

Workday Appoints New President for Product and Technology Division

Workday, Inc. has announced the appointment of Gerrit Kazmaier as president of product and technology, effective March 10, 2025. Kazmaier, who has experience from Google Cloud and SAP, will succeed Sayan Chakraborty, who is retiring after a decade of leadership. The company expressed gratitude for Chakraborty's contributions and looks forward to enhancing its innovation strategy under Kazmaier's guidance.

The press release highlights Kazmaier's background in enterprise software and his role in leading AI-driven initiatives. Workday emphasizes its commitment to leveraging AI to transform HR and finance management. The company serves over 11,000 organizations globally, including a significant portion of the Fortune 500, indicating its extensive reach in the industry.

Feb 25, 2025 16:05:04