WDAY Q4 2025 Earnings

Call Details

• Call Title: Workday, Inc. Q4 2025 Earnings Call
• Date: February 26, 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)
  • David Somers (Chief Product Officer)

Call Summary

Financial Performance

• Subscription revenue in Q4 was $2.04B, representing 16% year-over-year growth.
• Full-year FY25 subscription revenue was $7.718B, representing 17% year-over-year growth.
• Total revenue in Q4 was $2.21B, representing 15% year-over-year growth, and total FY25 revenue was $8.45B, up 16% year-over-year.
• Professional services revenue was $171M in Q4 and $728M for the full year.
• U.S. revenue in Q4 was $1.66B, up 15%, and international revenue in Q4 was $556M, up 16%.
• Twelve-month subscription revenue backlog (CRPO) was $7.63B at quarter end, growing 15%, and total subscription revenue backlog was $25.06B, up 20%.
• Gross revenue retention rate remained strong at 98% for the period reported.
• Q4 operating cash flow was $1.11B and FY25 operating cash flow was $2.46B, representing 15% growth for the year.

Guidance

• FY26 subscription revenue is expected to be approximately $8.8B, representing 14% year-over-year growth versus FY25.
• Q1 FY26 subscription revenue is expected to be approximately $2.05B, equating to 13% growth or 14% when normalized for the prior leap year.
• CRPO is expected to increase between 14.5% and 15.5% in Q1 FY26.
• Subscription revenue is expected to increase roughly 5.5% sequentially in Q2 FY26.
• FY26 professional services revenue is expected to be approximately $700M, with Q1 expected at $165M.
• FY26 non-GAAP operating margin is expected to be approximately 28%, with Q1 non-GAAP operating margin expected at 28%.
• FY26 operating cash flow is expected to be $2.75B and includes roughly $180M of cash outflows related to the restructuring in the first half of FY26.
• FY26 capital expenditures are expected to be approximately $250M and the FY26 non-GAAP tax rate is expected to be 19%.