Workday (WDAY) WDAY Q3 Financial Results Summary

Workday (WDAY) Q3 2026 Financial Results Summary

Release Date: November 25, 2025

Workday, Inc. (NASDAQ: WDAY) announced its financial results for the third quarter of fiscal 2026, which ended on October 31, 2025. The following summarizes the key points from the report:

Financial Highlights

• Total Revenues:
• $2.432 billion, an increase of 12.6% year-over-year from Q3 FY 2025.
• Subscription Revenues:
• $2.244 billion, reflecting a 14.6% increase from the same period last year.
• Operating Income:
• $259 million, representing 10.7% of revenues, up from $165 million and 7.6% of revenues year-over-year.
• Non-GAAP Operating Income:
• $692 million, or 28.5% of revenues, compared to $569 million (26.3%) in the prior year.
• Diluted Net Income Per Share:
• $0.94, up from $0.72 in Q3 FY 2025.
• Non-GAAP Diluted Net Income Per Share:
• $2.32, compared to $1.89 in the same quarter last year.
• 12-Month Subscription Revenue Backlog:
• $8.21 billion, increased by 17.6% year-over-year.
• Total Subscription Revenue Backlog:
• $25.96 billion, showing a growth of 17.0% from last year.
• Operating Cash Flows:
• $588 million, compared to $406 million in Q3 FY 2025.
• Free Cash Flows:
• $550 million, up from $359 million in the same period last year.
• Cash, Cash Equivalents, and Marketable Securities:
• $6.84 billion as of October 31, 2025.

Shareholder Returns

• Share Repurchases:
• Approximately 3.4 million shares of Class A common stock were repurchased for $803 million.

Business Developments and Growth Initiatives

• New customers acquired include:
• County of San Luis Obispo,
• Fuji Electric Co. Ltd.,
• Hoshino Resorts Inc.,
• Kelly Services,
• The Magnum Ice Cream Company.
• Expanded existing relationships with:
• CommonSpirit Health,
• Cornell University,
• DBS Bank,
• Guardian Life Insurance Company of America,
• IMA Financial Group,
• Levi Strauss & Co.,
• Northeast Georgia Medical Center,
• Novartis.
• Notably, the U.S. Department of Energy transitioned to Workday Government, marking the first cabinet-level agency to move its HR systems onto a FedRAMP-authorized cloud.
• Workday’s healthcare sector crossed $1 billion in annual recurring revenue.

Innovations and Partnerships

• New Innovations Unveiled at Workday Rising:
• Workday Illuminate™ AI agents,
• Workday Data Cloud,
• Workday Build,
• Workday Flex Credits.
• Established a new AI Centre of Excellence in Dublin, Ireland, with a €175 million investment creating 200 AI roles.
• Closed acquisitions of:
• Paradox (candidate experience agent utilizing conversational AI),
• Sana (enterprise knowledge tools provider).
• Formed a partnership with Microsoft aimed at enhancing organizational management of people and AI agents.

Financial Outlook

• Q4 FY 2026 Guidance:
• Subscription revenues projected at $2.355 billion, indicating a growth of 15.5%.
• Non-GAAP operating margin expected to be at least 28.5%.
• Full Year FY 2026 Guidance:
• Adjusted to forecast subscription revenues of $8.828 billion, reflecting growth of 14.4%.
• Non-GAAP operating margin projected to be approximately 29%.

Workday’s robust performance demonstrates its capacity to grow through strategic customer engagement and innovative solutions. The company continues to reinforce its market position in the AI-driven enterprise software landscape.