Workday Tops Q1 Revenue and EPS, Raises Full-Year Margin Outlook to 30.5%
Workday’s fiscal Q1 revenue rose 13% to $2.54 billion with adjusted EPS of $2.66, topping estimates, while the company launched two AI agents for IT service requests and travel management. It guided Q2 subscription sales to $2.46 billion, reaffirmed 12–13% full-year growth, and boosted its operating margin forecast to 30.5%.
1. Q1 Performance Beat Expectations
Workday delivered first-quarter revenue of $2.54 billion, a 13% year-over-year increase, and non-GAAP EPS of $2.66, both figures surpassing analyst consensus and triggering an 11% after-hours share rally.
2. AI Agent Launches
The company introduced two new AI agents within its Sana platform: one automates IT service requests and the other manages corporate travel bookings and expense reporting, drawing on existing data structures like roles, approval chains and policies.
3. Bullish Guidance and Margin Expansion
Workday guided second-quarter subscription revenue to $2.46 billion with a 30% adjusted operating margin target, and lifted its full-year margin forecast to 30.5% while maintaining a 12%–13% revenue growth outlook for fiscal 2026.