WDAY Q4 2026 Earnings

Call Details

• Call Title: Workday Q4 2026 Earnings Call
• Date: February 24, 2026 at 9:30 PM UTC
• Management Team:
  • Justin Furby (Vice President of Investor Relations)
  • Aneel Bhusri (Chief Executive Officer)
  • Gerrit Kazmaier (President, Product and Technology)
  • Rob Enslin (President, Chief Commercial Officer)
  • Zane Rowe (Chief Financial Officer)

Call Summary

Financial Performance

• Subscription revenue in Q4 was $2.360 billion, up 16% year-over-year.
• Full year FY26 subscription revenue was $8.833 billion, up 14% year-over-year.
• Total revenue in Q4 was $2.532 billion, up 15% year-over-year, and full year revenue was $9.552 billion, up 13% year-over-year.
• U.S. revenue in Q4 was $1.91 billion, up 15% year-over-year, and international revenue in Q4 was $626 million, up 13% year-over-year.
• 12-month subscription revenue backlog (CRPO) was $8.83 billion at quarter end, growing 15.8% year-over-year, and total subscription revenue backlog was $28.1 billion, up 12% year-over-year.
• Average contract duration in the quarter was down year-over-year due to a higher mix of renewal and customer-based activity.
• Gross revenue retention rate remained at 97% for the period reported.
• Net expansion contributed roughly 60% of subscription revenue growth for the quarter and the full year.

ARR / Recurring Revenue Growth

• ARR from emerging AI solutions is now reported as over $400 million in aggregate.
• In Q4, Workday generated over $100 million in new ACV from emerging AI products, growing over 100% year-over-year.
• CRPO growth of 15.8% at quarter end supports near-term recurring revenue visibility.
• Net expansion remained consistent and was the primary driver of subscription growth, accounting for roughly 60% of subscription revenue growth.
• Medium enterprise customers drove roughly 60% of net new ACV in FY26.
• Average contract duration declined, which may shorten revenue visibility per new contract but was attributed to mix shifts toward renewals and customer-based activity.