Workday (WDAY) Q4 2026 earnings summary

Executive summary

• Q4 FY26 total revenue reached $2.532B, with subscription revenue at $2.36B, both up over 14% year-over-year.

• Full-year FY26 total revenue was $9.552B, up 13.1%; subscription revenue was $8.833B, up 14.5%.

• Aneel Bhusri returned as CEO, emphasizing innovation and AI-driven growth, with several new AI-powered products and platform enhancements launched.

• Surpassed 11,500 global customers and 75M+ users under contract, with high customer trust and strong retention rates.

• Expanded AI capabilities through acquisitions (Sana, Paradox, HiredScore, Evisort, Pipedream) and organic development of role-based AI agents.

Financial highlights

• Q4 non-GAAP operating income was $774M (30.6% margin); full-year non-GAAP operating income was $2.824B (29.6% margin).

• Q4 operating cash flow was $1.28B; full-year operating cash flow was $2.94B, up 19%.

• Free cash flow for FY26 was $2.78B, up 26.7%.

• Q4 non-GAAP diluted EPS was $2.47, up from $1.92; full-year non-GAAP diluted EPS was $9.23, up from $7.30.

• Ended year with $5.443B in cash, cash equivalents, and marketable securities.

Outlook and guidance

• FY27 subscription revenue expected at $9.93B–$9.95B, growth of 12%–13%; total revenue guidance is $10.635B–$10.66B.

• Q1 FY27 subscription revenue guidance is $2.335B, up 13% year-over-year.

• FY27 non-GAAP operating margin expected at ~30%; Q1 at 30.5%.

• FY27 operating cash flow projected at $3.45B; free cash flow at $3.18B.

• Guidance reflects a conservative approach, with anticipated acceleration in agentic AI adoption in the second half of FY27.