Workday Unveils Fiscal 2026 Q3 Financial Results
Workday, Inc. recently reported significant growth in its financial performance for the fiscal year 2026 third quarter, ending October 31, 2025. Total revenues reached $2.432 billion, representing an increase of 12.6% from the previous year. Subscription revenues were particularly strong, amounting to $2.244 billion, marking a 14.6% rise year-over-year.
Quarterly Financial Highlights
- Total Revenues: $2.432 billion (up 12.6% YOY)
- Subscription Revenues: $2.244 billion (up 14.6% YOY)
- Operating Income: $259 million (10.7% of revenues)
- Net Income per Share: $0.94 (diluted)
- Free Cash Flows: $550 million
The company’s operating income also saw a substantial increase, rising to $259 million from $165 million in the same quarter last year. This growth translated into a non-GAAP operating income of $692 million, improving from $569 million a year prior, resulting in a non-GAAP operating margin of 28.5%.
Major Business Developments
In addition to robust financial results, Workday made several strategic acquisitions, including Paradox and Sana. These acquisitions aim to enhance the company’s capabilities in AI-driven solutions. Workday also launched a new AI Centre of Excellence in Dublin, Ireland, with a €175 million investment to create 200 specialized AI roles.
- New AI Initiatives: AI Centre of Excellence in Dublin
- Notable Acquisitions: Paradox and Sana
- New Customers, including County of San Luis Obispo and Fuji Electric Co. Ltd.
Workday’s CEO, Carl Eschenbach, highlighted the strength of their business model and AI portfolio, emphasizing the importance of a unified platform for managing people and financial operations. The CFO, Zane Rowe, provided guidance for the fiscal year, predicting subscription revenues of $8.828 billion, which reflects an anticipated growth of 14%.
Financial Outlook
Looking ahead, Workday expects subscription revenues for the upcoming fiscal quarter to reach $2.355 billion, representing a 15.5% growth. The company anticipates maintaining a non-GAAP operating margin of at least 28.5%.
Conclusion
With substantial increases in revenues and strategic growth initiatives, Workday is positioned well for continued success in the enterprise AI platform market. The combination of strong financial results and innovative developments sets a positive outlook as the company navigates through the remainder of fiscal 2026.
