Loading...
•
Jan 31
Workday Q4 2025 Earnings Report
Workday reported strong revenue growth in the fourth quarter of fiscal 2025 despite restructuring expenses impacting profitability.
Key Takeaways
Workday reported a 15% increase in total revenue for Q4 FY25, driven by strong subscription growth. However, restructuring expenses negatively impacted operating income. The company reported an increase in non-GAAP operating income and EPS.
Total revenue increased by 15% to $2.211 billion.
Subscription revenue grew by 15.9% to $2.040 billion.
Operating income was impacted by $75 million in restructuring expenses.
Non-GAAP diluted EPS increased to $1.92 from $1.57 in the same period last year.
Workday
Workday
Workday Revenue by Segment
Revenue by Segment
Subscription Services Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Workday expects continued growth in fiscal 2026 with subscription revenue forecasted to reach $8.8 billion and a non-GAAP operating margin of approximately 28%.
Positive Outlook
- Subscription revenue forecasted to grow 14% to $8.8 billion.
- Non-GAAP operating margin expected to reach 28%.
- Strong demand for AI-powered HR and finance solutions.
- Momentum in full suite and financials products.
- New strategic partnerships and product innovations announced.
Challenges Ahead
- Restructuring expenses impacting short-term profitability.
- Potential risks related to global macroeconomic uncertainties.
- Ongoing competition in HR and finance software space.
- Higher operating costs anticipated.
- Potential challenges with workforce reduction plans.