Workday Posts 13.5% Revenue Growth to $2.54B and $2.66 EPS
Workday’s fiscal Q1 total revenue rose 13.5% year-over-year to $2.542 billion, with subscription revenue up 14.3% to $2.354 billion and non-GAAP EPS of $2.66. The company reported a 12-month subscription backlog of $8.806 billion (up 15.5%), repurchased 12 million shares for $1.6 billion and affirmed fiscal ’27 subscription guidance.
1. Financial Highlights
Workday delivered fiscal Q1 total revenue of $2.542 billion, a 13.5% increase from the prior year, driven by subscription revenue of $2.354 billion, up 14.3%. Non-GAAP diluted net income per share was $2.66, compared to $2.23 a year earlier, and the 12-month subscription backlog climbed 15.5% to $8.806 billion.
2. Cash and Share Repurchases
Operating cash flow reached $696 million and free cash flow was $616 million for the quarter. The company repurchased approximately 12 million shares of Class A common stock for $1.6 billion and held $4.353 billion in cash, cash equivalents and marketable securities at quarter end.
3. Guidance and Outlook
Workday reiterated fiscal 2027 subscription revenue guidance of $9.925 billion to $9.950 billion, reflecting 12%–13% growth, and projected Q2 subscription revenue of $2.455 billion, a 13% increase. Non-GAAP operating margin guidance was raised to 30.5% for the full year and set at 30.0% for the second quarter.
4. AI Strategy Focus
Management emphasized its agentic AI roadmap, integrating AI capabilities across finance and human resources platforms to automate tasks and deepen customer engagement, positioning AI-driven features as a key growth lever moving forward.