Workday Shares Climb After Q4 Report: Here's Why

Workday, Inc. WDAY reported its fourth-quarter results after Tuesday's closing bell. Here's a look at the details from the report. 

The Details: Workday reported quarterly earnings of $1.92 per share which beat the analyst consensus estimate of $1.78. Quarterly revenue clocked in at $2.21 billion which beat the analyst consensus estimate of $2.18 billion and is an increase over revenue of $1.92 billion from the same period last year.

Workday reported subscription revenues were $2.04 billion, an increase of 15.9% year-over-year and operating income of $75 million, or 3.4% of revenues.

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“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,” Eschenbach added.

Outlook: Workday guided to first-quarter subscription revenue of $2.05 billion, representing growth of 13%,
and non-GAAP operating margin of 28%. The company expects fiscal 2026 full year subscription revenue of $8.8 billion, representing growth of 14%, and non-GAAP operating margin of 28%.

WDAY Price Action: According to data from Benzinga Pro, Workday shares are up 7.3% after hours at $273.85  Tuesday.  

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