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.

Total Revenue

$2.21B

Previous year: $1.92B

+15.0%

EPS

$1.92

Previous year: $1.57

+22.3%

Total Subscription Revenue Backlog

$25.1B

Previous year: $20.9B

+19.8%

12-Month Subscription Revenue Backlog

$7.63B

Previous year: $6.63B

+15.2%

Cash and Equivalents

$1.54B

Previous year: $7.81B

-80.3%

Free Cash Flow

$1.03B

Previous year: $949M

+8.1%

Workday Revenue

Workday EPS

Workday Revenue by Segment

Workday Revenue by Geographic Location

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.