WDAY
Workday, Inc.216.11
+1.21+0.56%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '26
Organic AI, Flex monetization emphasized
Q&A doubled down on organic AI agents as the growth driver, downplaying M&A while detailing Flex Credits to monetize third-party API calls and Data Cloud access—ensuring Workday captures value from any ecosystem build. Management framed FY27's 12-13% guide as conservative, expecting beats via second-half agent ramps offsetting Q1's DIA lapping and deal elongations. International progress shone in Canada and new India deals; sales flattened post-Blair for faster decisions. Core business? Rock-solid. Analysts' guide worries met direct rebuttals. Bullish tone signals reacceleration; watch organic agent ROI and Flex adoption.
Key Stats
Market Cap
57.70BP/E (TTM)
90.80Basic EPS (TTM)
2.38Dividend Yield
0%Recent Filings
10-K
FY2026 results
Workday delivered FY2026 revenues of $9.6B, up 13% y/y, with subscription services hitting $8.8B (up 14%), fueled by 60% from existing customer expansions and 40% from new logos amid moderating macro headwinds. Q4 closed strong on seasonality, pushing gross revenue retention to 97% and total backlog to $28.1B (12% y/y), though professional services dipped 1% on partner leverage. Non-GAAP operating margin expanded 370bps to 29.6% via disciplined spend and restructuring savings, yielding $2.8B free cash flow (27% y/y) and $5.4B liquidity after $2.9B buybacks. Yet service outages risk quarterly momentum.
8-K
Bhusri CEO equity grants
Workday granted CEO Aneel Bhusri 437,602 time-based RSUs vesting over four years and 547,003 performance RSUs tied to stock price hurdles from 25% ($171.39) to 100% ($274.22) above the March 5, 2026 baseline, measured monthly over five years. No further equity until fiscal 2028. Vesting includes acceleration on severance or change in control.
8-K
Q4 revenues up 14.5%
Workday reported fiscal Q4 total revenues of $2.532 billion, up 14.5% year-over-year, with subscription revenues hitting $2.360 billion, up 15.7%. Full-year revenues reached $9.552 billion, while operating cash flows surged 19.4% to $2.939 billion despite $303 million in restructuring costs. Guidance calls for FY2027 subscription growth of 12-13% to ~$9.9 billion. Backlog expanded, fueled by Sana and Paradox buys.
8-K
Bhusri returns as Workday CEO
Workday appointed co-founder Aneel Bhusri as CEO effective February 6, 2026, replacing Carl Eschenbach, who resigned as CEO and board member. Bhusri retains his chair role, securing $1.25M base salary, 200% target bonus, $60M RSUs, and $75M performance RSUs. Eschenbach receives $3.6M lump sum and accelerated vesting of 139,773+ shares. Bhusri and Duffield control 68% voting power.
8-K
Workday cuts 2% staff, $135M hit
Workday announced reorganizations on February 4, 2026, cutting ~2% of its workforce in non-revenue Global Customer Operations roles to prioritize fiscal 2027 growth areas. This triggers $135M in Q4 FY2026 charges—$40M cash severance and $95M non-cash impairments—slashing GAAP operating margins 24-25 points below non-GAAP in Q4 and 22-23 points full-year. Actions wrap by Q1 FY2027. Costs may exceed estimates.
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