Workday (WDAY) Q3 earnings report 2026
Workday CEO Carl Eschenbach (right) at the Allen & Co. Business Meeting held in Sun Valley, Idaho, on July 11, 2025. He’s walking to the morning session of the Media and Technology Conference.
David Paul Morris | Bloomberg | Getty Images
Working day Shares lost more than 5% in extended trading Tuesday after the maker of finance and human resources software issued quarterly margin guidance that came in below Wall Street forecasts.
Here is the company’s performance compared to the LSEG consensus:
- Earnings per share: $2.32 vs expected $2.18
- Revenues: 2.43 billion dollars, while the expectation was 2.42 billion dollars
The company is forecasting adjusted operating margins of at least 28.5% and subscription revenue of $2.355 billion in the fourth quarter. expression. StreetAccount consensus was for a 28.7% margin and $2.35 billion in subscription revenue.
Workday’s revenue grew nearly 13% year over year in the quarter ended Oct. 31. Net income of $252 million, or 94 cents per share, was up from $193 million, or 72 cents per share, in the same quarter a year ago.
Subscription revenue in the third quarter totaled $2.24 billion, with an adjusted operating margin of 28.5%. Analysts surveyed by StreetAccount were expecting $2.24 billion in subscription revenue and a margin of 28.1%.
Workday announces AI in fiscal third quarter agents to analyze employee performance and test financial health, the company announced plans to acquire artificial intelligence and learning software startup Sana to $1.1 billion. Separately, activist investor Elliott Management said it was building a Workday stake. over 2 billion dollars.
Shares of Workday have tumbled this year as experts debate the risk that generative AI tools could threaten the growth prospects of cloud software companies. The company’s shares are down 9% so far in 2025, while the Nasdaq Composite index is up 19%.
WRISTWATCH: Workday CEO Carl Eschenbach: There’s a narrative that AI is eating away at software, but it’s false
