Workday Reports Strong Q4 & FY26 Results, Announces $2.9B Share Repurchase, Provides FY27 Guidance
Summary
Workday reported strong fiscal Q4 and full-year 2026 financial results, highlighted by robust subscription revenue growth and profitability, alongside a significant $2.9 billion share repurchase program, while providing solid fiscal 2027 guidance.
Key Events
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Strong Fiscal Q4 and Full Year 2026 Results
Workday reported Q4 total revenues of $2.532 billion (up 14.5% year-over-year) and full-year total revenues of $9.552 billion (up 13.1%). Non-GAAP diluted net income per share for Q4 was $2.47 and for the full year was $9.23, significantly exceeding prior year figures.
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Significant Share Repurchase Program
The company repurchased approximately 12.8 million shares of Class A common stock for $2.9 billion as part of its share repurchase programs, demonstrating a strong commitment to returning capital to shareholders.
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Solid Fiscal 2027 Guidance
Workday provided fiscal 2027 full-year subscription revenue guidance of $9.925 billion to $9.950 billion, representing 12% to 13% growth, and expects a non-GAAP operating margin of approximately 30.0%.
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Robust Cash Flow Generation
Operating cash flows for fiscal 2026 increased by 19.4% to $2.939 billion, and free cash flows rose by 26.7% to $2.777 billion, indicating strong operational efficiency and financial health.
Analysis
Workday delivered robust financial results for its fiscal fourth quarter and full year 2026, exceeding prior year performance in key metrics like subscription revenue, operating income, and diluted net income per share. The company's strong cash flow generation enabled a substantial $2.9 billion share repurchase program, signaling confidence in its valuation, especially as the stock trades near its 52-week lows. While the fiscal 2027 subscription revenue guidance indicates a slight deceleration in growth compared to the prior year, the projected non-GAAP operating margin remains strong. This filing provides a comprehensive update on the company's financial health and strategic direction, including continued investment in AI and recent acquisitions, following a period of executive changes and restructuring.
At the time of this filing, WDAY was trading at $119.25 on NASDAQ in the Technology sector, with a market capitalization of approximately $34.3B. The 52-week trading range was $125.83 to $281.00. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.