• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    Workday Announces Fiscal 2025 Fourth Quarter and Full Year Financial Results

    2/25/25 4:01:00 PM ET
    $WDAY
    EDP Services
    Technology
    Get the next $WDAY alert in real time by email

    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 /PRNewswire/ -- 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.

    1

    See the section titled "About Non-GAAP Financial Measures" in the accompanying financial tables for further details.

    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

    1

    The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin in

    reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable to predict with reasonable

    certainty the amount and timing of adjustments that are used to calculate this non-GAAP financial measure, particularly related to stock-based compensation

    and its related tax effects, acquisition-related costs, and restructuring costs.

    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.

     

    Workday, Inc.

    Condensed Consolidated Balance Sheets

    (in millions)

    (unaudited)





    As of January 31,



    2025



    2024

    Assets







    Current assets:







    Cash and cash equivalents

    $              1,543



    $              2,012

    Marketable securities

    6,474



    5,801

    Trade and other receivables, net

    1,950



    1,639

    Deferred costs

    267



    232

    Prepaid expenses and other current assets

    311



    255

    Total current assets

    10,545



    9,939

    Property and equipment, net

    1,239



    1,234

    Operating lease right-of-use assets

    336



    289

    Deferred costs, noncurrent

    561



    509

    Acquisition-related intangible assets, net

    361



    233

    Deferred tax assets

    1,039



    1,065

    Goodwill

    3,478



    2,846

    Other assets

    418



    337

    Total assets

    $            17,977



    $            16,452

    Liabilities and stockholders' equity







    Current liabilities:







    Accounts payable

    $                 108



    $                   78

    Accrued expenses and other current liabilities

    296



    287

    Accrued compensation

    578



    544

    Unearned revenue

    4,467



    4,057

    Operating lease liabilities

    99



    89

    Total current liabilities

    5,548



    5,055

    Debt, noncurrent

    2,984



    2,980

    Unearned revenue, noncurrent

    80



    70

    Operating lease liabilities, noncurrent

    279



    227

    Other liabilities

    52



    38

    Total liabilities

    8,943



    8,370

    Stockholders' equity:







    Common stock

    0



    0

    Additional paid-in capital

    11,463



    10,400

    Treasury stock

    (1,308)



    (608)

    Accumulated other comprehensive income (loss)

    84



    21

    Accumulated deficit

    (1,205)



    (1,731)

    Total stockholders' equity

    9,034



    8,082

    Total liabilities and stockholders' equity

    $           17,977



    $           16,452

     

    Workday, Inc.

    Condensed Consolidated Statements of Operations

    (in millions, except number of shares which are reflected in thousands and per share data)

    (unaudited)





    Three Months Ended January 31,



    Year Ended January 31,



    2025



    2024



    2025



    2024

    Revenues:















    Subscription services

    $              2,040



    $              1,760



    $              7,718



    $              6,603

    Professional services

    171



    162



    728



    656

    Total revenues

    2,211



    1,922



    8,446



    7,259

    Costs and expenses (1):















    Costs of subscription services

    343



    272



    1,266



    1,031

    Costs of professional services

    197



    189



    803



    740

    Product development

    673



    635



    2,626



    2,464

    Sales and marketing

    629



    558



    2,432



    2,139

    General and administrative

    219



    189



    820



    702

    Restructuring (2)

    75



    0



    84



    0

    Total costs and expenses

    2,136



    1,843



    8,031



    7,076

    Operating income

    75



    79



    415



    183

    Other income (expense), net

    45



    59



    223



    173

    Income before provision for (benefit from) income taxes

    120



    138



    638



    356

    Provision for (benefit from) income taxes

    26



    (1,050)



    112



    (1,025)

    Net income

    $                   94



    $              1,188



    $                 526



    $              1,381

    Net income per share, basic

    $                0.35



    $                4.52



    $                1.98



    $                5.28

    Net income per share, diluted

    $                0.35



    $                4.42



    $                1.95



    $                5.21

    Weighted-average shares used to compute net income per share, basic

    265,837



    263,102



    265,257



    261,344

    Weighted-average shares used to compute net income per share, diluted

    270,007



    268,843



    269,205



    265,285











    (1) Costs and expenses include share-based compensation expense as follows:





















    Three Months Ended January 31,



    Year Ended January 31,



    2025



    2024



    2025



    2024

    Costs of subscription services

    $                   37



    $                   31



    $                 145



    $                 120

    Costs of professional services

    28



    28



    114



    116

    Product development

    173



    159



    670



    653

    Sales and marketing

    83



    70



    310



    282

    General and administrative

    68



    58



    272



    245

    Restructuring (2)

    8



    0



    8



    0

    Total share-based compensation expense

    $                 397



    $                 346



    $              1,519



    $              1,416





    (2)

    In February 2025, Workday announced a restructuring plan ("Fiscal 2026 Restructuring Plan") intended to prioritize its investments and continue advancing

    Workday's ongoing focus on durable growth. The plan is now expected to reduce Workday's current workforce by approximately 8%. In connection with the

    plan, Workday expects to exit certain owned office space. During the three and twelve months ended January 31, 2025, Workday recorded expenses of

    $65 million for employee transition, severance payments, employee benefits, and share-based compensation expense under the Fiscal 2026 Restructuring

    Plan. Additionally, during the three and twelve months ended January 31, 2025, Workday recorded exit charges of $10 million and $19 million, respectively,

    associated with office space reductions under a separate restructuring plan.

     

    Workday, Inc.

    Condensed Consolidated Statements of Cash Flows

    (in millions)

    (unaudited)





    Three Months Ended January 31,



    Year Ended January 31,



    2025



    2024



    2025



    2024

    Cash flows from operating activities:















    Net income

    $                   94



    $              1,188



    $                 526



    $              1,381

    Adjustments to reconcile net income to net cash provided by operating activities:















    Depreciation and amortization

    91



    72



    326



    282

    Share-based compensation expense

    397



    346



    1,519



    1,416

    Amortization of deferred costs

    66



    57



    251



    213

    Non-cash lease expense

    26



    24



    103



    96

    Losses on investments, net

    10



    3



    16



    19

    Accretion of discounts on marketable debt securities, net

    (23)



    (38)



    (113)



    (149)

    Deferred income taxes

    (4)



    (1,063)



    33



    (1,058)

    Other

    15



    7



    18



    (17)

    Changes in operating assets and liabilities, net of business combinations:















    Trade and other receivables, net

    (550)



    (415)



    (313)



    (87)

    Deferred costs

    (160)



    (159)



    (337)



    (342)

    Prepaid expenses and other assets

    (8)



    (9)



    50



    69

    Accounts payable

    28



    (9)



    25



    (72)

    Accrued expenses and other liabilities

    95



    124



    (41)



    (95)

    Unearned revenue

    1,036



    868



    398



    493

    Net cash provided by operating activities

    1,113



    996



    2,461



    2,149

    Cash flows from investing activities:















    Purchases of marketable securities

    (1,652)



    (1,404)



    (4,786)



    (6,150)

    Maturities of marketable securities

    866



    923



    3,846



    4,519

    Sales of marketable securities

    158



    51



    273



    144

    Capital expenditures

    (87)



    (48)



    (269)



    (232)

    Business combinations, net of cash acquired

    0



    0



    (825)



    (8)

    Purchase of other intangible assets

    0



    0



    (3)



    (10)

    Purchases of non-marketable equity and other investments

    (12)



    (5)



    (22)



    (16)

    Sales and maturities of non-marketable equity and other investments

    0



    2



    5



    2

    Net cash used in investing activities

    (727)



    (481)



    (1,781)



    (1,751)

    Cash flows from financing activities:















    Repurchases of common stock

    (102)



    (139)



    (700)



    (423)

    Proceeds from issuance of common stock from employee equity plans

    80



    81



    186



    177

    Taxes paid related to net share settlement of equity awards

    (132)



    (9)



    (636)



    (22)

    Net cash used in financing activities

    (154)



    (67)



    (1,150)



    (268)

    Effect of exchange rate changes

    (1)



    0



    0



    (1)

    Net increase (decrease) in cash, cash equivalents, and restricted cash

    231



    448



    (470)



    129

    Cash, cash equivalents, and restricted cash at the beginning of period

    1,323



    1,576



    2,024



    1,895

    Cash, cash equivalents, and restricted cash at the end of period

    $              1,554



    $              2,024



    $              1,554



    $              2,024

     

    Workday, Inc.

    Reconciliations of GAAP to Non-GAAP Data

    Reconciliations of Workday's GAAP to non-GAAP operating results are included in the following tables (in millions, except number of shares which are reflected in thousands, percentages, and per share data). See the section titled "About Non-GAAP Financial Measures" below for further details.



    Three Months Ended January 31,



    Year Ended January 31,



    2025



    2024



    2025



    2024

    Non-GAAP operating income















    Operating income

    $                75



    $                79



    $             415



    $             183

    Share-based compensation expense (1)

    389



    346



    1,511



    1,416

    Employer payroll tax-related items on employee stock transactions

    19



    20



    76



    66

    Amortization of acquisition-related intangible assets

    22



    16



    79



    75

    Acquisition-related costs

    4



    1



    21



    1

    Restructuring costs

    75



    0



    84



    0

    Non-GAAP operating income

    $             584



    $             462



    $          2,186



    $          1,741

















    Non-GAAP operating margin (2)















    Operating margin

    3.4 %



    4.1 %



    4.9 %



    2.5 %

    Share-based compensation expense (1)

    17.6 %



    18.0 %



    17.9 %



    19.5 %

    Employer payroll tax-related items on employee stock transactions

    0.8 %



    1.0 %



    0.9 %



    0.9 %

    Amortization of acquisition-related intangible assets

    1.0 %



    0.8 %



    0.9 %



    1.1 %

    Acquisition-related costs

    0.2 %



    0.1 %



    0.2 %



    0.0 %

    Restructuring costs

    3.4 %



    0.0 %



    1.1 %



    0.0 %

    Non-GAAP operating margin

    26.4 %



    24.0 %



    25.9 %



    24.0 %

















    Non-GAAP diluted net income per share (2)(3)















    Diluted net income per share

    $            0.35



    $            4.42



    $            1.95



    $            5.21

    Share-based compensation expense (1)

    1.44



    1.29



    5.61



    5.34

    Employer payroll tax-related items on employee stock transactions

    0.07



    0.07



    0.28



    0.25

    Amortization of acquisition-related intangible assets

    0.08



    0.06



    0.29



    0.28

    Acquisition-related costs

    0.02



    0.00



    0.08



    0.00

    Restructuring costs

    0.28



    0.00



    0.31



    0.00

    Losses on strategic investments, net

    0.04



    0.01



    0.07



    0.07

    Income tax effects

    (0.36)



    (4.28)



    (1.29)



    (5.25)

    Non-GAAP diluted net income per share

    $            1.92



    $            1.57



    $            7.30



    $            5.90





    (1)

    The share-based compensation expense lines in the GAAP to non-GAAP reconciliation tables above exclude share-based compensation expense

    of $8 million related to restructuring initiatives for the three and twelve months ended January 31, 2025. This expense is included in the Restructuring

    costs lines.

    (2)

    Operating margin and diluted net income per share are calculated using unrounded data.

    (3)

    For the three months ended January 31, 2025, GAAP and non-GAAP diluted net income per share were calculated based upon 270,007 diluted

    weighted-average shares of common stock. For the three months ended January 31, 2024, GAAP and non-GAAP diluted net income per share were

    calculated based upon 268,843 diluted weighted-average shares of common stock. For the fiscal year ended January 31, 2025, GAAP and non-GAAP

    diluted net income per share were calculated based upon 269,205 diluted weighted-average shares of common stock. For the fiscal year ended January

    31, 2024, GAAP and non-GAAP diluted net income per share were calculated based upon 265,285 diluted weighted-average shares of common stock. 

     

    Reconciliation of Workday's GAAP cash flows from operating activities to non-GAAP free cash flow is as follows (in millions). See the section titled "About Non-GAAP Financial Measures" below for further details.



    Three Months Ended January 31,



    Year Ended January 31,



    2025



    2024



    2025



    2024

    Net cash provided by operating activities

    $              1,113



    $                 996



    $              2,461



    $              2,149

    Less: Capital expenditures

    (87)



    (48)



    (269)



    (232)

    Free cash flows

    $              1,026



    $                 948



    $              2,192



    $              1,917

     

    About Non-GAAP Financial Measures

    Change in Non-GAAP Financial Measures

    Effective beginning fiscal 2025, Workday excludes certain acquisition-related costs, restructuring costs, and gains and losses on strategic investments from its non-GAAP results as these items may vary from period to period independent of the operating performance of Workday's business. Prior period amounts have been recast to conform to this presentation.

    Non-GAAP Financial Measures

    To provide investors and others with additional information regarding Workday's results, the following non-GAAP financial measures are disclosed: non-GAAP operating income, non-GAAP operating margin, non-GAAP diluted net income per share, and free cash flows. Workday has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Non-GAAP operating income and non-GAAP operating margin differ from GAAP in that they exclude share-based compensation expense, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, acquisition-related costs, and restructuring costs. Non-GAAP diluted net income per share differs from GAAP in that it excludes share-based compensation expense, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, acquisition-related costs, restructuring costs, gains and losses on strategic investments, and income tax effects. Free cash flows differ from GAAP cash flows from operating activities in that it treats capital expenditures as a reduction to cash flows.

    Workday's management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Workday's financial performance. Management believes these non-GAAP financial measures reflect Workday's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in Workday's business. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Workday's operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

    Management believes excluding the following items from the GAAP Condensed Consolidated Statements of Operations is useful to investors and others in assessing Workday's operating performance due to the following factors:

    • Share-based compensation expense. Share-based compensation primarily consists of non-cash expenses for employee restricted stock units and our employee stock purchase plan. Although share-based compensation is an important aspect of the compensation of our employees and executives, this expense is determined using a number of factors, including our stock price, volatility, and forfeiture rates, that are beyond our control and generally unrelated to operational decisions and performance in any particular period. Further, share-based compensation expense is not reflective of the value ultimately received by the grant recipients.
    • Employer payroll tax-related items on employee stock transactions. We exclude the employer payroll tax-related items on employee stock transactions in order to show the full effect that excluding share-based compensation expense has on our operating results. Similar to share-based compensation expense, this tax expense is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.
    • Amortization of acquisition-related intangible assets. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of the related amortization can vary significantly and are unique to each acquisition and thus we do not believe this activity is reflective of our ongoing operations. Although we exclude the amortization of acquisition-related intangible assets from these non-GAAP financial measures, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
    • Acquisition-related costs. Acquisition-related costs include direct transaction costs, such as due diligence and advisory fees, and certain compensation and integration-related expenses. We exclude the effects of acquisition-related costs as we believe these transaction-specific expenses are inconsistent in amount and frequency and do not correlate to the operation of our business.
    • Restructuring costs. Restructuring costs are associated with a formal restructuring plan and are primarily related to employee severance, the closure of facilities, and cancellation of certain contracts. We exclude these expenses because they are not reflective of ongoing business and operating results.
    • Gains and losses on strategic investments. Our strategic investments include investments in early stage companies that are valuable to Workday customers and complementary to Workday products. Gains and losses on strategic investments may result from observable price adjustments and impairment charges on non-marketable equity securities, ongoing mark-to-market adjustments on marketable equity securities, and the sale of equity investments. We do not rely on these securities to fund our ongoing operations nor do we actively trade publicly held securities, and therefore we do not consider the gains and losses on these strategic investments to be reflective of our ongoing operations.
    • Income tax effects. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a three year financial projection that excludes the direct impact of the items excluded from GAAP income in calculating our non-GAAP income. The projected rate considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. For fiscal 2026 and 2025, we determined the projected non-GAAP tax rate to be 19%, which reflects currently available information, as well as other factors and assumptions. We will periodically re-evaluate this tax rate, as necessary, for significant events, relevant tax law changes, material changes in the forecasted geographic earnings mix, and any significant acquisitions.

    Additionally, with regards to free cash flows, Workday's management believes that reducing cash provided by operating activities by capital expenditures is meaningful to investors and others because it provides an enhanced view of cash flow generation from the ongoing operations of our business, and it balances operating results, cash management, and capital efficiency.

    The use of these non-GAAP measures have certain limitations as they do not reflect all items of expense or cash that affect Workday's operations. Workday compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review Workday's financial information in its entirety and not rely on a single financial measure.

    Workday (PRNewsfoto/Workday)

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/workday-announces-fiscal-2025-fourth-quarter-and-full-year-financial-results-302385173.html

    SOURCE Workday Inc.

    Get the next $WDAY alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $WDAY

    DatePrice TargetRatingAnalyst
    2/27/2025$300.00 → $314.00Outperform
    BMO Capital Markets
    2/19/2025Neutral
    Redburn Atlantic
    2/19/2025$330.00 → $275.00Overweight → Equal-Weight
    Morgan Stanley
    1/8/2025$265.00 → $300.00Hold → Buy
    Deutsche Bank
    1/6/2025Sell → Neutral
    Guggenheim
    11/27/2024$285.00 → $270.00Overweight → Neutral
    Piper Sandler
    11/19/2024$340.00Sector Outperform
    Scotiabank
    5/24/2024$338.00 → $300.00Outperform
    BMO Capital Markets
    More analyst ratings

    $WDAY
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • Workday Names Edward Charter Country Leader for Canada

      Former Salesforce Executive will be Responsible for Accelerating Growth in the Canadian Market PLEASANTON, Calif., May 20, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ:WDAY), the AI platform for managing people, money, and agents, today announced the appointment of Edward Charter as country leader for Canada. Charter brings with him over 20 years of experience in technology business development and sales leadership throughout North America. He spent the last 18 years in various leadership roles at Salesforce, where he focused on driving customer success and growth. His career be

      5/20/25 8:30:00 AM ET
      $WDAY
      EDP Services
      Technology
    • Workday Unveils Next Generation of Illuminate Agents to Transform HR and Finance Operations

      New AI Agents Help Speed Hiring, Improve Frontline Worker Experiences, Streamline Complex Financial Processes, and Empower Employees to Find Information Fast PLEASANTON, Calif., May 19, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ:WDAY), the AI platform for managing people, money, and agents, today announced a new wave of Illuminate Agents designed to significantly speed up the hiring processes, improve frontline worker experiences, streamline complex financial processes, and empower employees to find information quickly and easily. The new agents leverage Workday's foundation of responsible AI and are purpose-built to supercharge employee productivity – creating a future where agentic AI fund

      5/19/25 9:15:00 AM ET
      $WDAY
      EDP Services
      Technology
    • Workday Chief Financial Officer to Present at the Jefferies Public Technology Conference on May 28, 2025

      PLEASANTON, Calif., May 14, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ:WDAY), the AI platform for managing people, money, and agents, today announced that Zane Rowe, chief financial officer, Workday, will present at the Jefferies Public Technology Conference on May 28, 2025 at 11:00 a.m. Pacific Time / 2:00 p.m. Eastern Time. A live webcast of the event will be available on the Workday Investor Relations site. The replay of the webcast will be available for a minimum of 90 days after the conference call. About WorkdayWorkday is the AI platform for managing people, money, and a

      5/14/25 8:30:00 AM ET
      $WDAY
      EDP Services
      Technology

    $WDAY
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more
    • BMO Capital Markets reiterated coverage on Workday with a new price target

      BMO Capital Markets reiterated coverage of Workday with a rating of Outperform and set a new price target of $314.00 from $300.00 previously

      2/27/25 6:48:52 AM ET
      $WDAY
      EDP Services
      Technology
    • Redburn Atlantic initiated coverage on Workday

      Redburn Atlantic initiated coverage of Workday with a rating of Neutral

      2/19/25 11:14:34 AM ET
      $WDAY
      EDP Services
      Technology
    • Workday downgraded by Morgan Stanley with a new price target

      Morgan Stanley downgraded Workday from Overweight to Equal-Weight and set a new price target of $275.00 from $330.00 previously

      2/19/25 7:09:54 AM ET
      $WDAY
      EDP Services
      Technology

    $WDAY
    SEC Filings

    See more
    • SEC Form DEFA14A filed by Workday Inc.

      DEFA14A - Workday, Inc. (0001327811) (Filer)

      4/23/25 4:18:55 PM ET
      $WDAY
      EDP Services
      Technology
    • SEC Form DEF 14A filed by Workday Inc.

      DEF 14A - Workday, Inc. (0001327811) (Filer)

      4/23/25 4:15:30 PM ET
      $WDAY
      EDP Services
      Technology
    • SEC Form 144 filed by Workday Inc.

      144 - Workday, Inc. (0001327811) (Subject)

      4/10/25 4:17:10 PM ET
      $WDAY
      EDP Services
      Technology

    $WDAY
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • CEO Eschenbach Carl M. covered exercise/tax liability with 1,674 shares, decreasing direct ownership by 0.24% to 708,780 units (SEC Form 4)

      4 - Workday, Inc. (0001327811) (Issuer)

      5/7/25 4:34:34 PM ET
      $WDAY
      EDP Services
      Technology
    • CEO Eschenbach Carl M. was granted 96,612 shares, increasing direct ownership by 16% to 710,454 units (SEC Form 4)

      4 - Workday, Inc. (0001327811) (Issuer)

      4/23/25 7:11:35 PM ET
      $WDAY
      EDP Services
      Technology
    • Chief Accounting Officer Garfield Mark S. was granted 9,661 shares, increasing direct ownership by 28% to 44,046 units (SEC Form 4)

      4 - Workday, Inc. (0001327811) (Issuer)

      4/23/25 7:10:36 PM ET
      $WDAY
      EDP Services
      Technology

    $WDAY
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • SEC Form SC 13G/A filed by Workday Inc. (Amendment)

      SC 13G/A - Workday, Inc. (0001327811) (Subject)

      2/13/24 5:01:52 PM ET
      $WDAY
      EDP Services
      Technology
    • SEC Form SC 13G/A filed by Workday Inc. (Amendment)

      SC 13G/A - Workday, Inc. (0001327811) (Subject)

      2/6/23 2:59:35 PM ET
      $WDAY
      EDP Services
      Technology
    • SEC Form SC 13G/A filed by Workday Inc. (Amendment)

      SC 13G/A - Workday, Inc. (0001327811) (Subject)

      2/11/22 4:00:16 PM ET
      $WDAY
      EDP Services
      Technology

    $WDAY
    Financials

    Live finance-specific insights

    See more
    • Workday Chief Financial Officer to Present at the Jefferies Public Technology Conference on May 28, 2025

      PLEASANTON, Calif., May 14, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ:WDAY), the AI platform for managing people, money, and agents, today announced that Zane Rowe, chief financial officer, Workday, will present at the Jefferies Public Technology Conference on May 28, 2025 at 11:00 a.m. Pacific Time / 2:00 p.m. Eastern Time. A live webcast of the event will be available on the Workday Investor Relations site. The replay of the webcast will be available for a minimum of 90 days after the conference call. About WorkdayWorkday is the AI platform for managing people, money, and a

      5/14/25 8:30:00 AM ET
      $WDAY
      EDP Services
      Technology
    • Workday Announces Date of Fiscal 2026 First Quarter Financial Results

      PLEASANTON, Calif., May 1, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ:WDAY), the AI platform for managing people, money, and agents, plans to announce its fiscal 2026 first quarter financial results after market close on Thursday, May 22, 2025. The company will host a conference call at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to review its financial results and business outlook. A live webcast of the event will be available on the Workday Investor Relations site. The replay of the webcast will be available for a minimum of 90 days after the conference call. About Workd

      5/1/25 8:30:00 AM ET
      $WDAY
      EDP Services
      Technology
    • Workday Announces Fiscal 2025 Fourth Quarter and Full Year Financial Results

      Fiscal Fourth Quarter Total Revenues of $2.211 Billion, Up 15.0% Year Over YearSubscription 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 YearSubscription Revenues of $7.718 Billion, Up 16.9% Year Over YearOperating Cash Flows of $2.461 Billion, Up 14.5% Year Over Year PLEASANTON, Calif., Feb. 25, 2025 /PRNewswire/ -- 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

      2/25/25 4:01:00 PM ET
      $WDAY
      EDP Services
      Technology

    $WDAY
    Leadership Updates

    Live Leadership Updates

    See more
    • Workday Names Edward Charter Country Leader for Canada

      Former Salesforce Executive will be Responsible for Accelerating Growth in the Canadian Market PLEASANTON, Calif., May 20, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ:WDAY), the AI platform for managing people, money, and agents, today announced the appointment of Edward Charter as country leader for Canada. Charter brings with him over 20 years of experience in technology business development and sales leadership throughout North America. He spent the last 18 years in various leadership roles at Salesforce, where he focused on driving customer success and growth. His career be

      5/20/25 8:30:00 AM ET
      $WDAY
      EDP Services
      Technology
    • Workday Names Gerrit Kazmaier President, Product and Technology

      Former Google and SAP Executive Joins Workday to Lead Global Innovation Strategy Sayan Chakraborty to Retire from Workday After a Decade of Transformative Leadership PLEASANTON, Calif., Feb. 25, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ:WDAY), the AI platform for managing people and money, today announced the appointment of Gerrit Kazmaier to the role of president, product and technology. Kazmaier will succeed Sayan Chakraborty, who is retiring from Workday, assuming leadership of the company's innovation strategy and product and technology organization. Kazmaier brings exten

      2/25/25 4:00:00 PM ET
      $WDAY
      EDP Services
      Technology
    • Apollo Global Management and Workday Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600

      NEW YORK, Dec. 6, 2024 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective prior to the open of trading on Monday, December 23, to coincide with the quarterly rebalance. The changes ensure each index is more representative of its market capitalization range. All companies being added to the S&P 500 are more representative of the large-cap market space, all companies being added to the S&P MidCap 400 are more representative of the mid-cap market space, and all companies being added to the S&P SmallCap 600 are more representative of the small-cap market space. The companies being removed from t

      12/6/24 6:29:00 PM ET
      $AMTM
      $APO
      $CMA
      $CRI
      Investment Managers
      Finance
      Major Banks
      Apparel