DBT Bureau
Pune, 30 Nov 2025
Workday Announces Fiscal 2026 Third Quarter Financial Results
- Total revenues were $2.432 billion, an increase of 12.6% from the third quarter of fiscal 2025. Subscription revenues were $2.244 billion, an increase of 14.6% from the same period last year.
- Operating income was $259 million, or 10.7% of revenues, compared to an operating income of $165 million, or 7.6% of revenues, in the same period last year. Non-GAAP operating income for the third quarter was $692 million, or 28.5% of revenues, compared to a non-GAAP operating income of $569 million, or 26.3% of revenues, in the same period last year.
- Diluted net income per share was $0.94, compared to diluted net income per share of $0.72 in the third quarter of fiscal 2025. Non-GAAP diluted net income per share was $2.32, compared to non-GAAP diluted net income per share of $1.89 in the same period last year.
- 12-month subscription revenue backlog was $8.21 billion, up 17.6% from the same period last year. Total subscription revenue backlog was $25.96 billion, increasing 17.0% year-over-year.
- 12-month subscription revenue backlog and total subscription revenue backlog include the impact from the acquisition of Paradox, which closed in the third quarter of fiscal 2026.
- Operating cash flows were $588 million compared to $406 million in the same period last year. Free cash flows were $550 million compared to $359 million in the same period last year.
- Workday repurchased approximately 3.4 million shares of Class A common stock for $803 million as part of its share repurchase programs.
- Cash, cash equivalents, and marketable securities were $6.84 billion as of October 31, 2025.
“Workday delivered another solid quarter, fueled by the strength and diversity of our business and the momentum we’re seeing across our AI portfolio,” said Carl Eschenbach, CEO, Workday. “By unifying people, money, and AI agents on one trusted platform, we’re giving customers a real edge—helping them empower their people, simplify how work gets done, and drive results that truly matter.”
“Our Q3 results were driven by continued progress across several key growth initiatives, as we accelerate innovation across the platform and bring exciting AI solutions to market,” said Zane Rowe, CFO, Workday. “We now expect fiscal 2026 subscription revenue of $8.828 billion, growth of 14%, and non-GAAP operating margin of approximately 29%.”
