Our customers are looking to continuously consolidate on top of the Workday platform. They do it with Workday because of the strong ROI in total cost of ownership we bring them.
— Carl Eschenbach
03Detailed Report
WDAY
Workday Inc
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 13, 2026
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Executive Summary
Workday Inc reported a strong performance in Q1 2026, achieving a 13% year-over-year growth in subscription revenue, resulting in total revenue of $2.24 billion. This growth is indicative of strong customer adoption across key sectors, underpinned by a robust focus on AI-driven solutions. While the current economic landscape presents uncertainties, CEO Carl Eschenbach emphasized the resilience of Workday's value proposition, particularly in helping organizations drive efficiencies, agility, and innovation. Management reiterated its commitment to long-term growth, bolstered by recent customer wins and a diversified product offering.
Key Performance Indicators
Revenue
Increasing
2.24B
QoQ: 1.31% | YoY: 13.02%
Gross Profit
Increasing
1.70B
76.03% margin
QoQ: 1.85% | YoY: 13.91%
Operating Income
Decreasing
39.00M
QoQ: -48.00% | YoY: -32.76%
Net Income
Decreasing
68.00M
QoQ: -27.66% | YoY: -36.45%
EPS
Decreasing
0.26
QoQ: -25.71% | YoY: -35.00%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Financial Metrics
- Total Revenue: $2.24 billion, up 13% YoY
- Subscription Revenue: $2.059 billion, up 13% YoY (15% adjusting for leap year)
- Net Income: $68 million, down 36.45% YoY
- EBITDA: $289 million, contributing a margin ratio of 12.9%
- Gross Profit Margin: 76.03%
- Non-GAAP Operating Margin: 30.2%
### Revenue Breakdown
- U.S. Revenue: $1.68 billion, up 13% YoY
- International Revenue: $559 million, up 13% YoY
- Subscription Revenue Backlog: $7.63 billion, up 15.6% YoY
- Gross Revenue Retention Rate: 98%
Commentary: Management highlighted strong demand for AI products, with over 25% of customer expansions incorporating AI solutions, indicating a robust push towards AI integration. CEO Carl Eschenbach noted, 'Our customers are investing in us because they know a path to leveraging AI is through the Workday platform.'
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.24B
13.02%
1.31%
Gross Profit
1.70B
13.91%
1.85%
Operating Income
39.00M
-32.76%
-48.00%
Net Income
68.00M
-36.45%
-27.66%
EPS
0.26
-35.00%
-25.71%
Key Financial Ratios
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