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Oct 31, 2025
Workday Q3 2026 Earnings Report
Workday reported strong financial results in Q3 FY26 with solid revenue growth and improved profitability.
Key Takeaways
Workday posted $2.43 billion in revenue and $252 million in net income for Q3 FY26, driven by strong growth in subscription services and robust demand for its AI-powered enterprise solutions.
Revenue by Segment
Forward Guidance
Workday expects continued subscription revenue growth and stable margins into Q4 FY26, backed by strong customer demand and AI investments.
Positive Outlook
- Q4 FY26 subscription revenue guidance of $2.355B (+15.5%)
- FY26 subscription revenue expected to reach $8.828B
- Non-GAAP operating margin guided at ~29% for FY26
- Strong momentum in AI product adoption
- Successful acquisition of Paradox and Sana to enhance AI capabilities
Challenges Ahead
- Professional services revenue declined YoY
- Ongoing restructuring costs impacting GAAP results
- Unfavorable FX or macroeconomic headwinds could affect growth
- Share repurchase reduced available cash
- Higher stock-based compensation expenses remain a drag on GAAP profitability
Historical Earnings Impact
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Avg. Return Before/After Earnings
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