The earnings call highlighted strong financial performance, significant AI-driven customer expansions, and strategic wins across key industries. However, challenges related to delayed revenue recognition from strategic deals and economic headwinds in EMEA were acknowledged. Overall, Workday's growth trajectory and operational improvements indicate a positive outlook, despite near-term challenges.

Company Guidance

In the Workday Q3 2025 earnings call, the company provided an optimistic outlook for future growth, citing significant metrics that underscore its performance and strategic direction. Subscription revenue increased by 16% to $1.959 billion, while non-GAAP operating margins were reported at 26.3%. Workday highlighted the expansion of its partner ecosystem, which has grown nearly fivefold over 18 months, contributing over 10% of net new ACV. The company also emphasized its advancements in AI, noting that over 30% of customer expansions involved AI solutions, with its Talent Optimization SKU driving up to a 39% reduction in turnover for clients. Looking ahead, Workday projects a full-year subscription revenue increase of 17% to $7.703 billion for FY 2025 and an anticipated FY 2026 subscription revenue of approximately $8.8 billion, reflecting 14% growth. The firm aims to expand non-GAAP operating margins to 30% by FY 2027, fueled by strategic investments and operational efficiencies.

Strong Subscription Revenue Growth

Workday reported a 16% growth in subscription revenue, reaching $1.959 billion for Q3, driven by strong customer relationships and AI innovation.

Record Operating Margin

The company achieved a non-GAAP operating margin of 26.3%, showcasing improved operational efficiency.

AI Solutions Momentum

Over 30% of customer expansions in Q3 included AI solutions, with Recruiter Agent seeing more new logos in Q3 than in its 12-year history.

International Growth Partnerships

Workday formed new strategic partnerships, including with NTT DATA in Japan, highlighting potential for international revenue growth.

Key Industry Wins

Significant wins in government, higher education, and healthcare sectors, including full suite wins with major organizations.

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Workday (WDAY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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WDAY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 04, 2018	2019 (Q2)	- / 0.31	0.24	29.17% (+0.07)	―	―
Nov 29, 2018	2019 (Q3)	- / 0.31	0.24	29.17% (+0.07)	―	―
Feb 28, 2019	2019 (Q4)	- / 0.41	0.28	46.43% (+0.13)	―	―
May 28, 2019	2020 (Q1)	- / 0.43	0.33	30.30% (+0.10)	―	―
Aug 29, 2019	2020 (Q2)	- / 0.44	0.31	41.94% (+0.13)	―	―
Dec 03, 2019	2020 (Q3)	- / 0.53	0.31	70.97% (+0.22)	―	―
Feb 27, 2020	2020 (Q4)	- / 0.50	0.41	21.95% (+0.09)	―	―
May 27, 2020	2021 (Q1)	- / 0.44	0.43	2.33% (+0.01)	―	―
Aug 27, 2020	2021 (Q2)	- / 0.84	0.44	90.91% (+0.40)	―	―
Nov 19, 2020	2021 (Q3)	- / 0.86	0.53	62.26% (+0.33)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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WDAY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 26, 2024	$270.19	$253.40	-6.21%
Aug 22, 2024	$231.08	$259.95	+12.49%
May 23, 2024	$260.90	$220.91	-15.33%
Feb 26, 2024	$307.21	$295.05	-3.96%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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