Workday marginally beats Q4 revenue estimates

Workday

24/02/2026 21:09

Overview

Enterprise AI platform's fiscal Q4 revenue slightly beat analyst expectations, rising 14.5% yr/yr

Adjusted EPS for fiscal Q4 beat analyst expectations

Company repurchased 12.8 mln shares for $2.9 bln in fiscal year

Outlook

Workday expects fiscal 2027 subscription revenues of $9.925 bln to $9.950 bln

Company anticipates fiscal 2027 non-GAAP operating margin of approximately 30.0%

Workday forecasts Q1 fiscal 2027 subscription revenues of $2.335 bln, up 13%

Result Drivers

SUBSCRIPTION REVENUE GROWTH - Subscription revenues increased 15.7% yr/yr, driven by strong demand for Workday's AI-enhanced HR and finance solutions

OPERATING INCOME INCREASE - Operating income rose to $174 mln from $75 mln yr/yr, reflecting improved operational efficiency

ACQUISITIONS IMPACT - Acquisitions of Paradox and Sana contributed to a 15.8% increase in 12-month subscription revenue backlog

Company press release: ID:nPn4yc1JSa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$2.53 bln
$2.52 bln (35 Analysts)
Q4 Adjusted EPS
Beat
$2.47
$2.32 (35 Analysts)
Q4 EPS
$0.55
Q4 Adjusted Operating income
Beat
$774 mln
$721.33 mln (33 Analysts)
Q4 Operating income
$174 mln
Q4 Subscription Revenue
$2.36 bln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Workday Inc is $230.00, about 78% above its February 23 closing price of $129.21

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 24 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)