# Workday (WDAY) Q1 FY2027 earnings

Results filed 2026-05-21 for the quarter ended 2026-04-30. Source page: https://earnings.opennash.com/companies/wday/2027-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1327811/000132781126000024/0001327811-26-000024-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Fiscal first quarter total revenues were $2.542 billion, up 13.5% year-over-year, with subscription revenues of $2.354 billion, up 14.3% year-over-year.

Workday's first quarter of fiscal 2027 (ended April 30, 2026) brought total revenues of $2.542 billion, up 13.5%, and subscription revenues of $2.354 billion, up 14.3%. GAAP operating income was $338 million, versus $39 million a year ago when restructuring costs weighed on results. Operating cash flows were $696 million, and the company repurchased about 12.0 million shares for $1.6 billion.
For the second quarter, Workday guided to subscription revenues of $2.455 billion, up 13%, and a 30.0% non-GAAP operating margin. It reiterated its full-year subscription revenue outlook of $9.925 billion to $9.950 billion and raised its full-year non-GAAP operating margin guidance to 30.5%. The tension is that the company is pushing agentic AI products and cost efficiency while subscription growth is guided to slow to 12% to 13% for the year.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenues | $2.542 billion | up 13.5% from the first quarter of fiscal 2026 | GAAP |
| Operating income | $338 million | compared to an operating income of $39 million in the same period last year | GAAP |
| Non-GAAP operating margin | 31.8% | compared to 30.2% in the same period last year | non-GAAP |
| Net income | $222 | up from $68 a year ago | GAAP |
| Diluted EPS | $0.87 | compared to $0.25 in the same period last year | GAAP |
| Non-GAAP diluted EPS | $2.66 | compared to $2.23 in the same period last year | non-GAAP |
| Operating cash flows | $696 million | compared to $457 million in the same period last year | GAAP |
| Free cash flows | $616 million | compared to $421 million in the same period last year | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Subscription revenues | $2.354 billion | an increase of 14.3% from the same period last year |
| 12-month subscription revenue backlog | $8.806 billion | up 15.5% from the same period last year |
| Total subscription revenue backlog | $27.294 billion | increasing 10.9% year-over-year |
| Customers using organically developed agents | over 4,000 | more than doubled quarter-over-quarter |
| Recruiting Agent hiring processes | 14 million | up 44% year-over-year |
| Users under contract | more than 80 million |  |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Subscription revenues | fiscal 2027 second quarter ending July 31, 2026 | $2.455 billion |
| Subscription revenues | fiscal 2027 full year ending January 31, 2027 | $9.925 billion to $9.950 billion |
| Non-GAAP operating margin | fiscal 2027 full year ending January 31, 2027 | 30.5% |
| Non-GAAP tax rate | fiscal 2027 | 19% |
| Operating cash flows | fiscal 2027 | $3.450B |
| Capital expenditures | fiscal 2027 | $270M |
| Free cash flow | fiscal 2027 | $3.180B |

## Key takeaways

1. **Operating profit swung sharply from last year** Operating income was $338 million, or 13.3% of revenues, compared to an operating income of $39 million, or 1.8% of revenues, in the same period last year. The prior-year quarter included restructuring expenses of $166 million.
2. **Non-GAAP operating margin rose to 31.8%** Non-GAAP operating income was $809 million, or 31.8% of revenues, compared to 30.2% a year earlier. Full-year non-GAAP operating margin guidance was raised to 30.5%.
3. **Full-year subscription outlook was reiterated, not raised** Workday kept fiscal 2027 subscription revenues at $9.925 billion to $9.950 billion, representing growth of 12% to 13%. Second quarter subscription revenues are guided to $2.455 billion, growth of 13%.
4. **Agent adoption is accelerating among customers** Over 4,000 customers use at least one organically developed agent, and the number more than doubled quarter-over-quarter. The Recruiting Agent supported 14 million hiring processes, up 44% year-over-year.
5. **Cash returned through large share repurchases** Workday repurchased approximately 12.0 million shares for $1.6 billion, while operating cash flows were $696 million. Cash, cash equivalents, and marketable securities were $4.353 billion as of April 30, 2026.

## Questions

**What were Workday's Q1 fiscal 2027 revenues?** Total revenues were $2.542 billion, up 13.5% from a year ago, and subscription revenues were $2.354 billion, up 14.3%.
**How profitable was Workday in the quarter?** GAAP operating income was $338 million, or 13.3% of revenues, and non-GAAP operating margin was 31.8%. Diluted EPS was $0.87 GAAP and $2.66 non-GAAP.
**What is Workday's guidance for the second quarter?** Workday expects subscription revenues of $2.455 billion, representing growth of 13%, and a non-GAAP operating margin of 30.0%.
**Did Workday change its full-year outlook?** It reiterated fiscal 2027 subscription revenues of $9.925 billion to $9.950 billion and raised non-GAAP operating margin guidance to 30.5%.
**How is Workday's cash generation and capital return?** Operating cash flows were $696 million and free cash flows were $616 million, up from $457 million and $421 million a year ago. Workday repurchased about 12.0 million shares for $1.6 billion.

## Slides and investor documents

- [Q1 FY27 Investor Presentation](https://s21.q4cdn.com/950027458/files/doc_financials/2027/q1/v2/Q1-FY27-Investor-Relations-Quarterly_new.pdf) (Slide deck)
- [Q1 FY27 Earnings Prepared Remarks](https://s21.q4cdn.com/950027458/files/doc_earnings/2027/q1/generic/Q1-FY27-Earnings-Prepared-Remarks.pdf) (CFO commentary)
- [Q1 FY27 Earnings Conference Call](https://events.q4inc.com/attendee/378546408) (Webcast replay)
- [Q1 FY27 Financial Results](http://investor.workday.com/news-and-events/press-releases/news-details/2026/Workday-Announces-Fiscal-2027-First-Quarter-Financial-Results) (Document)
- [Q1 FY27 10-Q](https://s21.q4cdn.com/950027458/files/doc_financials/2027/q1/da15cffb-a9fb-42b2-a79f-e5b2b96229ed.pdf) (Document)