Workday Reports Strong Financial Growth in Fiscal Year 2026 and Sets Ambitious Goals for Future
Workday, Inc. (NASDAQ: WDAY) has officially announced its financial results for the fourth quarter and full year of fiscal 2026, demonstrating remarkable growth across multiple metrics. The financial report, which was shared on February 24, 2026, reveals that the company saw its total revenues reach $2.532 billion in the fourth quarter, marking a significant 14.5% increase compared to the same quarter of fiscal 2025.
Additionally, subscription revenues climbed to $2.360 billion, which translates to a 15.7% rise year-over-year. For the fiscal year as a whole, total revenues experienced a 13.1% surge, amounting to $9.552 billion, with subscription revenues reaching $8.833 billion, up 14.5% from the previous year. Notably, operating cash flows also saw a remarkable growth of 19.4%, hitting $2.939 billion.
Key Highlights of Fiscal Year 2026
The company's results highlighted strong operational performance, with an operating income of $721 million, or 7.5% of revenues. This was up from $415 million, or 4.9% of revenues, in fiscal 2025. Importantly, the operating income in fiscal 2026 included restructuring expenses totaling $303 million, significantly higher than the $84 million reported the year prior. This impacted earnings but underscored Workday's commitment to restructuring for growth.
In terms of net income, Workday reported a diluted net income per share of $2.59 compared to $1.95 in fiscal 2025. The company’s strong financial performance placed it in a solid position to invest in future growth, particularly in expanding its artificial intelligence capabilities, which are pivotal for its HR and finance solutions.
Aneel Bhusri's Vision for Workday
Aneel Bhusri, Workday's co-founder and CEO, emphasized the company’s mission to innovate within the domains of human resources and finance using AI. In his statement, Bhusri mentioned, "We built Workday to bring innovation back to the worlds of HR and finance, and AI gives us the chance to do it all again." He highlighted the company's unique position within the enterprise sector, where accuracy and trust are paramount.
CFO Zane Rowe further commented on the results, stating that they reflect the deep-seated trust that customers have in Workday to manage critical assets effectively. Looking ahead, Workday expects to achieve subscription revenues ranging from $9.925 billion to $9.950 billion in fiscal 2027, indicating a projected growth rate of 12% to 13%.
Customer Growth and Product Development
During the fiscal year, Workday successfully attracted several notable new clients, including Boston Children's Hospital and Copenhagen Airports, among others. Additionally, the company expanded its relationships with key partners such as Accenture and eBay Inc., growing its global customer base to over 11,500 organizations.
Workday has also invested heavily in its AI capabilities, with 1.7 billion AI actions delivered across its platform throughout fiscal 2026. Recent product launches included the Sana Core and Sana Enterprise, and the introduction of conversational applicant tracking systems powered by AI, specifically aiming to assist organizations in quickly hiring frontline workers.
Looking Forward to Fiscal 2027
As Workday prepares for the next fiscal year, it is prioritizing investment in its AI-powered solutions to capitalize on market opportunities. With the upcoming expansion of new functionalities and enhanced global payroll services aimed at midsize businesses, Workday's ambitions appear to be on a strong upward trajectory.
In terms of financial health, Workday repurchased approximately 12.8 million shares of Class A common stock for $2.9 billion, indicating a solid commitment to returning value to shareholders. As of January 31, 2026, the company reported $5.443 billion in cash, cash equivalents, and marketable securities, bolstering its capacity for future growth and innovation.
In conclusion, Workday's robust financial performance for fiscal 2026 not only establishes a strong foundation as the company steps into fiscal 2027 but also reflects its strategic commitment to innovation, customer trust, and AI evolution in enterprise solutions.
Additionally, subscription revenues climbed to $2.360 billion, which translates to a 15.7% rise year-over-year. For the fiscal year as a whole, total revenues experienced a 13.1% surge, amounting to $9.552 billion, with subscription revenues reaching $8.833 billion, up 14.5% from the previous year. Notably, operating cash flows also saw a remarkable growth of 19.4%, hitting $2.939 billion.
Key Highlights of Fiscal Year 2026
The company's results highlighted strong operational performance, with an operating income of $721 million, or 7.5% of revenues. This was up from $415 million, or 4.9% of revenues, in fiscal 2025. Importantly, the operating income in fiscal 2026 included restructuring expenses totaling $303 million, significantly higher than the $84 million reported the year prior. This impacted earnings but underscored Workday's commitment to restructuring for growth.
In terms of net income, Workday reported a diluted net income per share of $2.59 compared to $1.95 in fiscal 2025. The company’s strong financial performance placed it in a solid position to invest in future growth, particularly in expanding its artificial intelligence capabilities, which are pivotal for its HR and finance solutions.
Aneel Bhusri's Vision for Workday
Aneel Bhusri, Workday's co-founder and CEO, emphasized the company’s mission to innovate within the domains of human resources and finance using AI. In his statement, Bhusri mentioned, "We built Workday to bring innovation back to the worlds of HR and finance, and AI gives us the chance to do it all again." He highlighted the company's unique position within the enterprise sector, where accuracy and trust are paramount.
CFO Zane Rowe further commented on the results, stating that they reflect the deep-seated trust that customers have in Workday to manage critical assets effectively. Looking ahead, Workday expects to achieve subscription revenues ranging from $9.925 billion to $9.950 billion in fiscal 2027, indicating a projected growth rate of 12% to 13%.
Customer Growth and Product Development
During the fiscal year, Workday successfully attracted several notable new clients, including Boston Children's Hospital and Copenhagen Airports, among others. Additionally, the company expanded its relationships with key partners such as Accenture and eBay Inc., growing its global customer base to over 11,500 organizations.
Workday has also invested heavily in its AI capabilities, with 1.7 billion AI actions delivered across its platform throughout fiscal 2026. Recent product launches included the Sana Core and Sana Enterprise, and the introduction of conversational applicant tracking systems powered by AI, specifically aiming to assist organizations in quickly hiring frontline workers.
Looking Forward to Fiscal 2027
As Workday prepares for the next fiscal year, it is prioritizing investment in its AI-powered solutions to capitalize on market opportunities. With the upcoming expansion of new functionalities and enhanced global payroll services aimed at midsize businesses, Workday's ambitions appear to be on a strong upward trajectory.
In terms of financial health, Workday repurchased approximately 12.8 million shares of Class A common stock for $2.9 billion, indicating a solid commitment to returning value to shareholders. As of January 31, 2026, the company reported $5.443 billion in cash, cash equivalents, and marketable securities, bolstering its capacity for future growth and innovation.
In conclusion, Workday's robust financial performance for fiscal 2026 not only establishes a strong foundation as the company steps into fiscal 2027 but also reflects its strategic commitment to innovation, customer trust, and AI evolution in enterprise solutions.
Topics Business Technology）
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