WDAY Q3 2026 Earnings

Call Details

• Call Title: Workday, Inc. Q3 2026 Earnings Call
• Date: November 25, 2025 at 9:30 PM UTC
• Management Team:
  • Justin Furby (Vice President of Investor Relations)
  • Carl Eschenbach (Chief Executive Officer)
  • Zane Rowe (Chief Financial Officer)
  • Gerrit Kazmaier (President, Product and Technology)

Call Summary

Financial Performance

• Subscription revenue in Q3 was $2.244B, up 15% versus prior year.
• Professional services revenue in Q3 was $188M, resulting in total revenue of $2.432B, up 13% year-over-year.
• U.S. revenue in Q3 was $1.825B, up 12% year-over-year, and international revenue was $607M, up 13% year-over-year.
• Non-GAAP operating income for the quarter was $692M, representing a non-GAAP operating margin of 28.5%.
• Q3 operating cash flow was $588M, representing growth of 45% year-over-year.
• Headcount at October 31 was 20,588 workmates, including roughly 600 from the Paradox acquisition.

Guidance

• Q4 subscription revenue guidance is $2.355B, which the company expects to be up 15% year-over-year and includes revenue from the FON acquisition and the expected delivery on the first phase of the DIA contract.
• FY26 subscription revenue guidance is $8.828B, which the company expects to be up 14% year-over-year.
• Q4 CRPO is expected to increase between 15% and 16%, which includes approximately 0.25 points from the Sana acquisition (about $20M) and over a point of impact from tenants that are being lapped in Q1.
• Q4 professional services revenue is expected to be $168M and full-year professional services revenue is expected to be $715M.
• The company expects a non-GAAP operating margin of at least 28.5% for Q4 and approximately 29% for the full year FY26, and it expects GAAP operating margins to be roughly 19 and 21 points lower than the comparable non-GAAP margins for Q4 and full year respectively.
• FY26 non-GAAP tax rate is expected to be 19%, operating cash flow outlook is $2.90B, capital expenditures are expected to be approximately $200M, and FY26 free cash flow is expected to be $2.70B, representing growth of 23%.
• FY27 subscription revenue growth is expected to be approximately 13%, and the company is targeting a subscription revenue CAGR of 12% to 15% through FY28.