Workday (WDAY) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 subscription revenues reached $7.718B, up 16.9% year-over-year, with total revenues at $8.446B, up 16.4% year-over-year.

• Achieved 16% subscription revenue growth and 26% non-GAAP operating margin in Q4, with strong execution across industries and geographies.

• Launched the Agent System of Record and new AI-driven product features, expanding global reach and industry partnerships.

• Welcomed major new customers, now serving over 11,000 organizations, including more than 60% of the Fortune 500 and ~30% of Forbes Global 2000.

• Announced a restructuring plan to reduce workforce by approximately 8%.

Financial highlights

• Q4 FY25 total revenues were $2.211B, up 15% year-over-year; subscription revenues were $2.040B, up 15.9%.

• Full-year FY25 subscription revenue was $7.718B, up 16.9%; total revenue was $8.446B, up 16.4%.

• Q4 non-GAAP operating income was $584M (26.4% margin); full-year non-GAAP operating income was $2.19B (25.9% margin).

• Q4 operating cash flow was $1.11B; full-year operating cash flow was $2.461B, up 14.5%.

• Gross revenue retention rates remained strong at 98%.

Outlook and guidance

• FY26 subscription revenue expected at $8.8B, up 14%; Q1 subscription revenue guidance of $2.05B, up 13-14%.

• FY26 total revenue guidance is $9.5B, up 13%; Q1 total revenue guidance is $2.215B, up 11%.

• FY26 non-GAAP operating margin expected at 28%; Q1 non-GAAP margin also at 28%.

• FY26 operating cash flow projected at $2.75B, including $180M in restructuring-related outflows.

• Professional services revenue for FY26 expected at $700M.