Workday's Q4 and FY '25 results demonstrate strong growth, particularly in subscription revenue, core financial wins, AI monetization, and international expansion. Despite the need for restructuring and macro headwinds in EMEA, the overall performance and strategic advancements in AI and partnerships present a positive outlook.

Company Guidance

During Workday's fourth-quarter fiscal 2025 earnings call, the company provided comprehensive guidance indicating a positive outlook for fiscal 2026. Subscription revenue for fiscal 2025 was reported at $7.718 billion, a 17% increase, with expectations for fiscal 2026 set at approximately $8.8 billion, representing a 14% growth. For the first quarter of fiscal 2026, subscription revenue is projected at $2.050 billion, with a growth rate of 13%. The company also highlighted a strong non-GAAP operating margin of 26.4% for the fourth quarter, with a fiscal 2026 target of approximately 28%. Cash flow from operations was $2.46 billion for the year, with a fiscal 2026 projection of $2.75 billion. Workday continues to emphasize strategic investments in AI, international markets, and its partner ecosystem, aiming for mid-teens subscription revenue growth and a 30% non-GAAP operating margin in the medium term.

Strong Q4 Performance

Workday delivered 16% subscription revenue growth and a 26% non-GAAP operating margin in Q4. Total revenue in Q4 was $2.21 billion, up 15%. Full-year FY '25 subscription revenue was $7.718 billion, growth of 17%.

Record Number of Core Financial Wins

In Q4, Workday reported a record number of core financials wins, with significant expansions in financial services and healthcare, contributing to strong momentum.

AI Monetization and Growth

AI SKUs were involved in more than 30% of customer expansions. Extend Pro and Recruiting Agent doubled ACV from Q3 to Q4. The launch of the Agent System of Record and new role-based agents marks a significant AI advancement.

International Expansion

Despite macro headwinds, international revenue grew 16% in Q4, with strong performance in the UK and Germany, and new wins in APAC.

Successful Partner Ecosystem Growth

More than 15% of net new ACV in Q4 was sourced through partners, up from more than 10% last quarter.

Future Outlook and Guidance

Workday expects FY '26 subscription revenue of approximately $8.8 billion, growth of 14%, with an expected non-GAAP operating margin of approximately 28%.

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Workday (WDAY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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WDAY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 22, 2025	2026 (Q1)	2.01 / -	1.74	―	―	―
Feb 25, 2025	2025 (Q4)	1.78 / 1.92	1.57	22.29% (+0.35)
Nov 26, 2024	2025 (Q3)	1.78 / 1.89	1.53	23.53% (+0.36)
Aug 22, 2024	2025 (Q2)	1.65 / 1.75	1.43	22.38% (+0.32)
May 23, 2024	2025 (Q1)	1.60 / 1.74	1.31	32.82% (+0.43)
Feb 26, 2024	2024 (Q4)	1.47 / 1.57	0.99	58.59% (+0.58)
Nov 28, 2023	2024 (Q3)	1.41 / 1.53	0.99	54.55% (+0.54)
Aug 24, 2023	2024 (Q2)	1.26 / 1.43	0.83	72.29% (+0.60)
May 25, 2023	2024 (Q1)	1.12 / 1.31	0.83	57.83% (+0.48)
Feb 27, 2023	2023 (Q4)	0.89 / 0.99	0.78	26.92% (+0.21)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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WDAY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 25, 2025	$255.22	$271.09	+6.22%
Nov 26, 2024	$270.19	$253.40	-6.21%
Aug 22, 2024	$231.08	$259.95	+12.49%
May 23, 2024	$260.90	$220.91	-15.33%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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