AI Takeaway
Workday (WDAY) delivered strong FY2026 results with revenue growing 13.1% to $9.55B, operating income surging 73.7% to $721M, and operating cash flow rising 19.4% to $2.94B, while aggressively returning $2.90B to shareholders via buybacks.
Revenue
$9.55B
++13.09% YoY
EPS (Basic)
$2.61
++31.82% YoY
Operating Income
$721M
++73.73% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 13.1% year-over-year to $9.55B in FY2026 (from $8.45B in FY2025), reflecting continued enterprise adoption of Workday's cloud-based HCM and financial management platforms.
Source: Source: 10-K Income Statement
Operating income jumped 73.7% to $721M, with operating margin expanding approximately 260 basis points to 7.5% from 4.9% in the prior year, demonstrating meaningful operating leverage as revenue scaled faster than costs.
Source: Source: 10-K Income Statement
R&D expense was $2.68B in FY2026, up only 2.0% year-over-year despite total revenue growing 13.1%, indicating Workday is beginning to harvest efficiency from its prior heavy investment cycle while maintaining product innovation.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockStockholders' equity fell 13.6% to $7.81B as Workday deployed $2.90B in share repurchases. While this signals confidence, it also reduces the equity cushion and increases financial leverage, with a debt-to-equity ratio rising to 1.32x.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.47 versus the $2.37 analyst consensus — a +4.2% beat for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $9.55B | $8.45B | +13.09% |
Operating Income | $721M | $415M | +73.73% |
Net Income | $693M | $526M | +31.75% |
EPS (Basic) | $2.61 | $1.98 | +31.82% |
EPS (Diluted) | $2.59 | $1.95 | +32.82% |
R&D Expense | $2.68B | $2.63B | +2.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $18.07B | $17.98B | +0.54% |
Current Assets | $8.43B | $10.54B | -20.07% |
Total Liabilities | $10.27B | $8.94B | +14.83% |
Current Liabilities | $6.38B | $5.55B | +14.96% |
Stockholders' Equity | $7.8B | $9.03B | -13.60% |
Cash & Equivalents | $1.5B | $1.54B | -2.72% |
Long-Term Debt | $2.99B | $2.98B | +0.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.94B | $2.46B | +19.42% |
Investing Cash Flow | $333M | $-1.78B | +118.70% |
Financing Cash Flow | $-3.32B | $-1.15B | -188.61% |
Share Buybacks | $2.9B | $700M | +313.57% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 7.5% | 4.9% | +2.63% |
Net Margin | 7.3% | — | — |
ROE | 8.9% | — | — |
ROA | 3.8% | — | — |
Current Ratio | $1.322 | — | — |
Debt to Equity | $1.316 | — | — |
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Workday had a strong FY2026, with revenue growing 13.1% to $9.55B and operating income surging 73.7% to $721M. Net income rose 31.7% to $693M, and diluted EPS increased 32.8% to $2.59.
The standout themes in WDAY's FY2026 results were significant operating leverage (operating margin expanded to 7.5% from 4.9%), strong cash flow generation ($2.94B operating cash flow), and an aggressive $2.90B share buyback program. R&D spend grew only 2.0% while revenue grew 13.1%, signaling improving cost discipline.
Workday repurchased $2.90B in shares during FY2026, a massive 313.6% increase from $700M in FY2025. This was the primary driver of the $3.32B in financing cash outflows and contributed to a 13.6% decline in stockholders' equity to $7.81B.
Key risks inferred from Workday's FY2026 financials include high R&D spending of $2.68B (nearly 3.7x operating income), rising total liabilities up 14.8% to $10.27B, and a 20.1% decline in current assets to $8.43B driven by the buyback program. Competition from SAP, Oracle, and AI-native vendors also poses a strategic risk to future growth.
Yes, Workday is profitable with $693M in net income and $2.94B in operating cash flow for FY2026. The current ratio of 1.32x indicates adequate short-term liquidity, though investors should note that total liabilities of $10.27B now exceed stockholders' equity of $7.81B, reflecting the impact of the large buyback program on the balance sheet.