NASDAQ$WDAY

Workday Inc A · Q4 2025 earnings

Q4 2025 earnings · · After market close · Investor relations

Briefing

Workday reported strong revenue growth in the fourth quarter of fiscal 2025 despite restructuring expenses impacting profitability.

Workday reported a 15% increase in total revenue for Q4 FY25, driven by strong subscription growth. However, restructuring expenses negatively impacted operating income. The company reported an increase in non-GAAP operating income and EPS.

  • Total revenue increased by 15% to $2.211 billion.
  • Subscription revenue grew by 15.9% to $2.040 billion.
  • Operating income was impacted by $75 million in restructuring expenses.
  • Non-GAAP diluted EPS increased to $1.92 from $1.57 in the same period last year.

Headline financials

Total Revenue

$2.21B

Previous: $1.92B+15.0%
EPS (adj)

$1.92

Previous: $1.57+22.3%
Total subscription revenue backlog

$25B

Previous: $20.9B+19.8%
Operating cash flow

$1.11B

No prior period
12-month subscription revenue backlog

$7.63B

Previous: $6.6B+15.6%
Net Income

$94M

Previous: $1.19B-92.1%
Operating Income

$75M

Previous: $79M-5.1%

Revenue & EPS history

Workday · Revenue · Quarterly

$2.21B

Q4 2025+15%vs Q4 2024
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Workday · $2.54B total across 2 segments · Q1 2027

  • Subscription services
    $2.35B
  • Professional services
    $188M

Forward guidance

Workday expects continued growth in fiscal 2026 with subscription revenue forecasted to reach $8.8 billion and a non-GAAP operating margin of approximately 28%.

Tailwinds

  • Subscription revenue forecasted to grow 14% to $8.8 billion.
  • Non-GAAP operating margin expected to reach 28%.
  • Strong demand for AI-powered HR and finance solutions.
  • Momentum in full suite and financials products.
  • New strategic partnerships and product innovations announced.

Headwinds

  • Restructuring expenses impacting short-term profitability.
  • Potential risks related to global macroeconomic uncertainties.
  • Ongoing competition in HR and finance software space.
  • Higher operating costs anticipated.
  • Potential challenges with workforce reduction plans.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2025

Historical avgQ4 2025

+0.5%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-1.7%

Avg return

30 days after

41%

22 / 54 earnings

Positive

+20.5%

Q4 2016

Best reaction

-15.3%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-4.6%-7.6%-12.9%
Q4 2026-0.2%+2.9%-4.6%
Q3 2026-3.0%-8.7%-5.6%
Q2 2026-2.8%+0.9%+2.7%
Q1 2026-12.4%-11.8%-12.5%
Q4 2025+6.2%-0.3%-6.6%
Q3 2025-5.3%-6.6%+0.6%
Q2 2025+11.3%+13.3%+6.3%
Q1 2025-15.0%-17.1%-15.7%
Q4 2024-3.5%-4.6%-10.5%
Q3 2024+11.7%+15.7%+17.1%
Q2 2024+2.9%+5.0%+0.3%
Q1 2024+10.1%+6.6%+13.3%
Q4 2023+1.3%+4.6%+8.3%
Q3 2023+15.6%+17.7%+15.5%
Q2 2023+3.8%+2.4%-5.7%
Q1 2023-3.5%-5.0%-7.6%
Q4 2022+6.7%+6.7%+7.3%
Q3 2022-4.8%-8.8%-9.0%
Q2 2022+9.4%+11.0%+9.1%
Q1 2022-3.1%-3.3%+2.7%
Q4 2021-6.7%-5.6%-5.0%
Q3 2021-6.4%-4.7%+8.0%
Q2 2021+14.2%+13.2%+1.0%
Q1 2021+8.4%+5.7%+11.4%
Q4 2020-1.2%-5.0%-22.3%
Q3 2020-3.8%-3.3%-2.6%
Q2 2020-4.3%-5.6%-9.0%
Q1 2020-3.6%-3.1%-2.1%
Q4 2019-4.2%-7.8%-2.3%
Q3 2019+12.5%+13.2%+9.4%
Q2 2019-8.0%-6.2%-9.6%
Q1 2019-4.2%-2.3%-8.1%
Q4 2018-0.9%+2.7%-0.5%
Q3 2018-10.2%-15.8%-11.3%
Q2 2018+5.1%+4.2%+0.9%
Q1 2018+4.4%+2.7%-3.0%
Q4 2017-7.5%-6.4%-5.7%
Q3 2017-15.3%-12.8%-21.6%
Q2 2017+6.7%+4.3%+12.0%
Q1 2017+1.8%+5.4%-1.8%
Q4 2016+20.5%
Q3 2016-0.7%
Q2 2016+7.6%
Q1 2016-11.0%
Q4 2015-4.7%
Q3 2015-6.1%
Q2 2015-5.4%
Q1 2015+7.3%
Q4 2014+16.9%
Q3 2014+11.5%
Q2 2014-1.6%
Q1 2014-3.4%
Q4 2013-3.2%
Q3 2013
Q2 2012
Q1 2012
Q4 2011
Q3 2011

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