| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 2.5K | 13.5% |
| Total Income | 2.5K | 13.5% |
| Expenditure | 2.2K | 0.1% |
| PBT | 355.00 | 244.7% |
| Net Profit | 222.00 | 226.5% |
| OPM | 13.30% | 11.56pp |
| NPM | 8.73% | 5.70pp |
| EPS | 0.87 | 248.0% |
Workday Announces Fiscal 2027 First Quarter Financial Results with Total Revenues of $2.542 Billion
22 May 2026 · 22 May, 1:38 am
Summary
Workday, Inc. announced strong results for its fiscal 2027 first quarter, with total revenues climbing 13.5% year-over-year to $2.542 billion, driven by a 14.3% increase in subscription revenues to $2.354 billion. The company saw a significant improvement in operating income, reaching $338 million or 13.3% of revenues, compared to $39 million in the prior year. Diluted net income per share also rose substantially to $0.87. Management expressed confidence in their AI strategy and ongoing customer adoption, reiterating their fiscal 2027 subscription revenue outlook while increasing the non-GAAP operating margin guidance to 30.5%.
Key Highlights
- 1
Workday reported total revenues of $2.542 billion for the fiscal 2027 first quarter, marking a 13.5% increase year-over-year.
- 2
Subscription revenues grew by 14.3% year-over-year to $2.354 billion in the first quarter of fiscal 2027.
- 3
Operating income significantly improved to $338 million, or 13.3% of revenues, compared to $39 million, or 1.8% of revenues, in the prior year, which was impacted by restructuring expenses.
- 4
Diluted net income per share rose to $0.87 from $0.25 in the same period last year, reflecting strong profitability.
- 5
The 12-month subscription revenue backlog increased by 15.5% year-over-year to $8.806 billion, indicating robust future revenue streams.
- 6
Operating cash flows reached $696 million, a substantial increase from $457 million in the first quarter of fiscal 2026.
- 7
Workday repurchased approximately 12.0 million shares of Class A common stock for $1.6 billion during the quarter.
Management Comments
Aneel Bhusri
We had a great Q1, and it makes one thing clear: Workday is ready for this AI moment. Our core business is strong, our AI strategy is working, and we’re moving with the speed and focus required to lead. I am very excited about Workday’s position and our path ahead. We have the platform, the trust, and the innovation to lead this next chapter, just as we did when we founded the company.
Zane Rowe
Our first quarter results demonstrate ongoing customer adoption across our platform, as enterprises around the globe turn to Workday to manage and empower their most important assets. We are reiterating our fiscal 2027 subscription revenue outlook of $9.925 billion to $9.950 billion, while increasing our fiscal 2027 non-GAAP operating margin guidance to 30.5%. Our focus remains on executing on our agentic AI roadmap while driving operational efficiencies as we scale.
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