"Workday guided for full-year subscription revenue of $9.925 billion to $9.950 billion, representing 12% to 13% growth, a modest deceleration from FY2026's pace. The 12-month subscription backlog of $8.833 billion, up 15.8%, offers some reassurance that demand remains intact."
"Co-founder Aneel Bhusri, who returned as CEO to lead the company's AI push, struck an optimistic tone: '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.' The company delivered 1.7 billion AI actions across its platform in FY2026 and completed acquisitions of Paradox, Sana, and Pipedream to build out its agentic AI capabilities."
"The software company posted non-GAAP EPS of $2.47, up 28.6% year over year, beating the consensus estimate of $2.32. Total revenue reached $2.532 billion, up 14.5% year over year, driven by subscription revenue of $2.36 billion, up 15.7%. The non-GAAP operating margin expanded 420 basis points to 30.6%, and full-year free cash flow grew 26.86% to $2.777 billion."
Workday delivered strong Q4 FY2026 results with non-GAAP EPS of $2.47, beating consensus by $0.15, and total revenue of $2.532 billion, up 14.5% year over year. Subscription revenue grew 15.7% to $2.36 billion, while non-GAAP operating margins expanded 420 basis points to 30.6%. Free cash flow increased 26.86% to $2.777 billion. However, FY2027 guidance projected subscription revenue growth of only 12-13%, representing a deceleration from FY2026's pace. The 12-month subscription backlog of $8.833 billion, up 15.8%, indicates sustained demand. CEO Aneel Bhusri emphasized AI innovation, noting 1.7 billion AI actions delivered in FY2026 and recent acquisitions of Paradox, Sana, and Pipedream to enhance agentic AI capabilities. Stock declined 8% after-hours and nearly 13% in premarket trading.
Read at 24/7 Wall St.
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