Workday reported robust financial results for fiscal 2025, highlighting significant year-over-year growth in both total and subscription revenues. Fourth quarter total revenues reached $2.211 billion, up 15%, while subscription revenues rose 15.9% to $2.040 billion. Annual revenues were $8.446 billion, marking a 16.4% increase, driven primarily by subscription revenues totaling $7.718 billion. The year also featured strong operational cash flow of $2.461 billion and strategic enhancements in AI capabilities. Despite restructuring expenses, Workday achieved improved non-GAAP profitability and expanded its customer base and strategic partnerships.

Fiscal Fourth Quarter Total Revenues of $2.211 Billion, Up 15.0% Year Over Year
Subscription Revenues of $2.040 Billion, Up 15.9% Year Over Year
Fiscal Year 2025 Total Revenues of $8.446 Billion, Up 16.4% Year Over Year
Subscription Revenues of $7.718 Billion, Up 16.9% Year Over Year
Operating Cash Flows of $2.461 Billion, Up 14.5% Year Over Year

PLEASANTON, Calif., Feb. 25, 2025 -- Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people and money, today announced results for the fiscal 2025 fourth quarter and full year ended January 31, 2025.

Fiscal 2025 Fourth Quarter Results

• Total revenues were $2.211 billion, an increase of 15.0% from the fourth quarter of fiscal 2024. Subscription revenues were $2.040 billion, an increase of 15.9% from the same period last year.


• Operating income was $75 million, or 3.4% of revenues, compared to an operating income of $79 million, or 4.1% of revenues, in the same period last year. Operating income in the fourth quarter of fiscal 2025 was impacted by restructuring expenses of $75 million. Non-GAAP operating income for the fourth quarter was $584 million, or 26.4% of revenues, compared to a non-GAAP operating income of $462 million, or 24.0% of revenues, in the same period last year.¹


• Diluted net income per share was $0.35, compared to diluted net income per share of $4.42 in the fourth quarter of fiscal 2024. Net income per share in the fourth quarter of fiscal 2025 was impacted by restructuring expenses of $75 million, while the prior year period benefited from a $1.1 billion release of the valuation allowance related to U.S. federal and state deferred tax assets. Non-GAAP diluted net income per share was $1.92, compared to non-GAAP diluted net income per share of $1.57 in the same period last year.¹

Fiscal Year 2025 Results

• Total revenues were $8.446 billion, an increase of 16.4% from fiscal 2024. Subscription revenues were $7.718 billion, an increase of 16.9% from the prior year.


• Operating income was $415 million, or 4.9% of revenues, compared to an operating income of $183 million, or 2.5% of revenues, in fiscal 2024. Operating income in fiscal 2025 was impacted by restructuring expenses of $84 million. Non-GAAP operating income was $2.186 billion, or 25.9% of revenues, compared to a non-GAAP operating income of $1.741 billion, or 24.0% of revenues, in the prior year.¹


• Diluted net income per share was $1.95, compared to diluted net income per share of $5.21 in fiscal 2024. Net income per share in fiscal 2025 was impacted by restructuring expenses of $84 million, while the prior year benefited from a $1.1 billion release of the valuation allowance related to U.S. federal and state deferred tax assets. Non-GAAP diluted net income per share was $7.30, compared to non-GAAP diluted net income per share of $5.90 in the same period last year.¹


• 12-month subscription revenue backlog was $7.63 billion, up 15.2% from the same period last year. Total subscription revenue backlog was $25.06 billion, increasing 19.7% year-over-year.


• Operating cash flows were $2.461 billion compared to $2.149 billion in the prior year. Free cash flows were $2.192 billion compared to $1.917 billion in the prior year.¹


• Workday repurchased approximately 2.9 million shares of Class A common stock for $700 million as part of its share repurchase programs.


• Cash, cash equivalents, and marketable securities were $8.02 billion as of January 31, 2025.

Comments on the News

"Our fourth quarter performance is a testament to Workday's value proposition as organizations seek to boost productivity, run more efficiently, and deliver incredible employee experiences," said Carl Eschenbach, CEO, Workday. "Workday's unified platform gives customers the ultimate advantage—helping them unlock value faster, reduce total cost of ownership, and harness the power of AI across our best-in-class HR and finance solutions."

"Our fourth quarter results were driven by solid performance across key growth areas of the business, including continued momentum with our full suite and financials products, growing demand for our AI SKUs, and strong execution across industry verticals," said Zane Rowe, CFO, Workday. "We continue to expect fiscal 2026 subscription revenue of $8.800 billion, representing 14% growth, and we now expect fiscal 2026 non-GAAP operating margin of approximately 28.0%. We are focused on investing to support long-term growth, while driving efficiencies in the business."

Recent Highlights

• Workday announced the Workday Agent System of Record, which will enable organizations to manage their entire fleet of AI agents in one place. Workday also announced new role-based Illuminate agents for Payroll, Contracts, Financial Auditing, and Policy.


• Workday named Gerrit Kazmaier as president, product and technology, and announced Sayan Chakraborty's retirement from the company.


• Workday is now used by more than 11,000 organizations around the world, including approximately 30% of the Forbes Global 2000.


• Workday welcomed new core customers including First-Citizens Bank & Trust, St. Louis County, UnityPoint Health, and Vermont State College System and expanded existing relationships with Aon, Sallie Mae Bank, Sutter Health, and Toyota.


• Workday added new strategic partnerships with Randstad and TechWolf, and added five new Workday Wellness partners, including MetLife.


• Workday hosted Rising EMEA, the company's annual EMEA user conference with more than 5,000 attendees, and unveiled new Illuminate capabilities in Workday Peakon Employee Voice to unlock deeper and faster employee insights with AI.


• Workday announced the availability of Workday Student in Australia and New Zealand, marking the product's first global launch outside of North America.


• KLAS Research named Workday as Best in KLAS 2025 in enterprise resource planning (ERP) for large organizations for the eighth year in a row.

Financial Outlook

• Workday is providing guidance for the fiscal 2026 first quarter ending April 30, 2025 as follows:
  
  
  
  • Subscription revenue of $2.050 billion, representing growth of 13%
  
  
  • Non-GAAP operating margin of 28.0%¹
  
  
  
  


• Workday is providing guidance for the fiscal 2026 full year ending January 31, 2026 as follows:
  
  
  
  • Subscription revenue of $8.800 billion, representing growth of 14%
  
  
  • Non-GAAP operating margin of 28.0%¹
  
  
  
  

 

Earnings Call Details

Workday plans to host a conference call today to review its fiscal 2025 fourth quarter and full year financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.

Workday uses the Workday Blog as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Workday

Workday is the AI platform that helps organizations manage their most important assets – their people and money. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 11,000 organizations around the world and across industries – from medium-sized businesses to more than 60% of the Fortune 500. For more information about Workday, visit workday.com.

© 2025 Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Workday's first quarter and full year fiscal 2026 subscription revenue and non-GAAP operating margin, growth, momentum, demand, and investments. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to: (i) breaches in our security measures or those of our third-party providers, unauthorized access to our customers' or other users' personal data, or disruptions in our data center or computing infrastructure operations; (ii) service outages, delays in the deployment of our applications, and the failure of our applications to perform properly; (iii) privacy concerns and evolving domestic or foreign laws and regulations; (iv) the impact of continuing global economic and geopolitical volatility on our business, as well as on our customers, prospects, partners, and service providers; (v) any loss of key employees or the inability to attract, train, and retain highly skilled employees; (vi) competitive factors, including pricing pressures, industry consolidation, entry of new competitors and new applications, advancements in technology, and marketing initiatives by our competitors; (vii) our reliance on our network of partners to drive additional growth of our revenues; (viii) the regulatory, economic, and political risks associated with our domestic and international operations; (ix) adoption of our applications and services by customers and individuals, including any new features, enhancements, and modifications, as well as our customers' and users' satisfaction with the deployment, training, and support services they receive; (x) the regulatory risks related to new and evolving technologies such as AI and our ability to realize a return on our development efforts; (xi) our ability to realize the expected business or financial benefits of any acquisitions of or investments in companies; (xii) delays or reductions in information technology spending; (xiii) adverse litigation results; and (xiv) changes in sales, which may not be immediately reflected in our results due to our subscription model. Further information on these and additional risks that could affect Workday's results is included in our filings with the Securities and Exchange Commission ("SEC"), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday's discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.