WDAY Q1 2026 Earnings

Call Details

• Call Title: Workday, Inc. Q1 2026 Earnings Call
• Date: May 22, 2025 at 8:30 PM UTC
• Management Team:
  • Carl Eschenbach (Chief Executive Officer)
  • Zane Rowe (Chief Financial Officer)
  • Gerrit Kazmaier (President, Product and Technology)
  • Justin Furby (Vice President of Investor Relations)

Call Summary

Financial Performance

• Subscription revenue for Q1 was $2.059B, representing 13% growth versus the comparable period of fiscal 2025.
• Total revenue for Q1 was $2.24B, with professional services revenue of $181M in the quarter.
• Non-GAAP operating income for Q1 was $677M, representing a non-GAAP operating margin of 30.2%.
• GAAP operating income for Q1 was $39M after a $166M restructuring charge recognized earlier in the year.
• Operating cash flow for Q1 was $457M, representing growth of 23% year over year.
• The company ended the quarter with $8.0B in cash and marketable securities and repurchased $293M of shares in the quarter.

Guidance

• The company reiterated FY26 subscription revenue guidance of $8.8B and expects Q2 FY26 subscription revenue of approximately $2.16B, growth of 13%.
• FY26 non-GAAP operating margin is expected to be approximately 28.5%, and Q2 non-GAAP operating margin is expected to be 28%.
• FY26 non-GAAP tax rate is expected to be 19% and FY26 operating cash flow guidance remains $2.75B.
• FY26 professional services revenue is expected to be approximately $700M, with Q2 professional services revenue expected at $180M.
• CRPO is expected to increase between 15% and 16% in Q2, including approximately a one percentage point contribution from short-duration tenant contracts.
• The company expects GAAP operating margin to be approximately 20 to 21 points lower than non-GAAP operating margin for Q2 and the full fiscal year, respectively.