Workday, Inc., the enterprise AI platform for managing human resources and finances, has reported impressive financial results for the fourth quarter and full year of fiscal 2026, which ended on January 31, 2026.
During the fourth quarter, total revenues reached $2.532 billion, marking a 14.5% increase year-over-year. Subscription revenues also saw strong growth, totaling $2.360 billion, up 15.7% from the same quarter in the previous year. The operating income stood at $174 million, equivalent to 6.9% of revenues, a significant jump from $75 million or 3.4% during the same quarter last year. Non-GAAP operating income for this period soared to $774 million, representing 30.6% of revenues, compared to $584 million and 26.4% from the prior year.
For the entire fiscal year 2026, Workday reported total revenues of $9.552 billion, an increase of 13.1% over the previous year, with subscription revenues rising to $8.833 billion, reflecting a 14.5% growth. The operating income for the year was $721 million, or 7.5% of revenues, up from $415 million or 4.9% in fiscal 2025. Notably, restructuring expenses amounted to $303 million this fiscal year, significantly higher than the $84 million reported in the last fiscal year.
Diluted net income per share increased to $0.55 from $0.35. The non-GAAP diluted net income per share also demonstrated growth, climbing to $2.47 from $1.92 the previous year. The 12-month subscription revenue backlog reached $8.833 billion, up 15.8% year-over-year, and total subscription revenue backlog amounted to $28.101 billion, increasing by 12.2%.
Cash flows from operations saw substantial growth, totaling $2.939 billion, marking a 19.4% rise compared to fiscal 2025. The company also reported free cash flows of $2.777 billion, up 26.7% from last year.
“We built Workday to bring innovation back to the worlds of HR and finance, and AI gives us the chance to do it all again,” stated Aneel Bhusri, co-founder, CEO, and chair of Workday. “We operate at the heart of the global enterprise, where trust and accuracy matter most.”
Workday projected a positive outlook for fiscal 2027, expecting subscription revenues to reach approximately $9.925 billion to $9.950 billion, corresponding to a growth of 12% to 13%. The company also anticipated a non-GAAP operating margin of about 30.0%.
In a significant move, Workday repurchased approximately 12.8 million shares of its Class A common stock for $2.9 billion as part of its share repurchase program, showcasing its commitment to returning value to shareholders.
With a robust financial performance and a clear focus on AI-driven innovation, Workday is positioning itself strongly for future growth, underscoring its critical role in helping organizations manage their most vital assets effectively.