Workday Q4 EPS $2.47, Subscription Backlog Climbs 15.8% but Guides Below Estimates
Workday reported Q4 EPS of $2.47, beating consensus by $0.15, and revenue rose to $2.53 billion from $2.21 billion, with subscription backlog climbing 15.8% to $8.83 billion. It guided Q1 revenue at $2.52 billion and fiscal 2027 revenue to $10.64–10.66 billion, both below analyst estimates.
1. Q4 Financial Results
Workday reported fourth-quarter earnings of $2.47 per share, beating consensus estimates by $0.15 and representing a 28.6% increase from $1.92 per share a year earlier. Revenue climbed to $2.53 billion from $2.21 billion year-over-year, narrowly surpassing analyst expectations.
2. Backlog Growth
Subscription backlog grew by 15.8% to $8.83 billion on a 12-month basis, driven by new contracts with enterprise customers. Total contract backlog reached $28.1 billion, up 12.2% year-over-year, reflecting strength in recurring software revenues.
3. Guidance and Market Reaction
Workday guided first-quarter revenue at $2.52 billion, below the $2.53 billion consensus, and forecast fiscal 2027 revenue of $10.64–10.66 billion versus expectations of $10.72 billion. The below-estimate outlook prompted an approximate 8% drop in extended trading as investors weighed growth prospects.