Workday Announces Fiscal 2027 First Quarter Financial Results

(MENAFN- OMC) DUBAI, UNITED ARAB EMIRATES, May. 22, 2026 -- Workday, Inc. (NASDAQ: WDAY), the enterprise AI platform for HR, finance, and IT, today announced results for the fiscal 2027 first quarter ended April 30, 2026.
Fiscal 2027 First Quarter Results
•Total revenues were $2.542 billion, an increase of 13.5% from the first quarter of fiscal 2026. Subscription revenues were $2.354 billion, an increase of 14.3% from the same period last year.
•Operating income was $338 million, or 13.3% of revenues, compared to an operating income of $39 million, or 1.8% of revenues, in the same period last year. Operating income in the first quarter of fiscal 2026 was impacted by restructuring expenses of $166 million.Non-GAAP operating income for the first quarter was $809 million, or 31.8% of revenues, compared to a non-GAAP operating income of $677 million, or 30.2% of revenues, in the same period last year.1
•Diluted net income per share was $0.87, compared to diluted net income per share of $0.25 in the same period last year. Diluted net income per share in the first quarter of fiscal 2026 was impacted by restructuring expenses of $166 million. Non-GAAP diluted net income per share was $2.66, compared to non-GAAP diluted net income per share of $2.23 in the same period last year.1
•12-month subscription revenue backlog was $8.806 billion, up 15.5% from the same period last year. Total subscription revenue backlog was $27.294 billion, increasing 10.9% year-over-year.
•Operating cash flows were $696 million compared to $457 million in the same period last year. Free cash flows were $616 millioncompared to $421 million in the same period last year.1
•Workday repurchased approximately 12.0 million shares of Class A common stock for $1.6 billion as part of its share repurchase programs.
•Cash, cash equivalents, and marketable securities were $4.353 billion as of April 30, 2026.
1See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details.
Comments on the News
“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,” said Aneel Bhusri, co-founder, CEO, and chair, Workday. “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.”
“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,” said Zane Rowe, CFO, Workday. “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.”
Recent Business Highlights
•Workday welcomed new customers including ACHM Hotels by Marriott, Australian Gas Infrastructure Group, Del Monte Fresh Produce Company, Smiths Group, and State of Delaware, and expanded existing relationships with Bank OZK, GE Vernova, and Queensland University of Technology.
•The number of customers using Workday's organically developed agents has more than doubled quarter-over-quarter, with over 4,000 customers using at least one of these agents, as of today, to support their business processes.
•In Q1, Workday supported 14 million hiring processes with its Recruiting Agent, up 44% year-over-year.
•The Workday customer community now represents more than 80 million users under contract.
•Sana from Workday – superintelligence for work – is now available to customers worldwide. Workday also introduced Sana for IT Service Management (ITSM) to handle common service tasks from HR, finance, and IT, and a new Travel Agent to bring travel and expenses together in one seamless experience.
•The Workday Agent System of Record is now generally available, giving customers visibility and control over all of their AI agents.
•Workday introduced new innovations to support the public sector and veteran workforce, including the Personnel Action Request Agent to modernize federal HR transactions and Military Skills Mapper to help organizations more effectively identify and hire military veteran talent.
•Workday expanded into Vietnam, its sixth market in the ASEAN region, joining Singapore, Malaysia, Thailand, Indonesia, and the Philippines.
•Workday announced EU-based data residency in Frankfurt and multilingual support for Workday Contract Lifecycle Management, providing organizations with a contract management solution that meets EU data residency requirements.
•Workday expanded its partnership with Microsoft; announced new partner offerings through Workday Recognition provided by Achievers and the Insperity HRScale™ solution; and welcomed Morgan Stanley at Work and PerkSpot to the Workday Wellness program.
•Workday was the only vendor to be named a Customers’ Choice in the 2026 Gartner Voice of the Customer for Cloud ERP for Service-Centric Enterprises1 for two consecutive years.
•Workday was named a Leader in the Gartner® Magic Quadrant™ for Student Information Systems.2
•Workday was named one of the 2026 World’s Most Ethical Companies® by Ethisphere for the sixth consecutive year.
•KLAS Research recognized Workday as the 2026 Best in KLAS winner for ERP for large organizations.
1Gartner Voice of the Customer for Cloud ERP for Service-Centric Enterprises, Peer Community Contributor, 24 April 2026
2Gartner Magic Quadrant for Higher Education SaaS Student Information Systems, Robert Yanckello, Grace Farrell, 31 March 2026

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