Workday (WDAY) Q4 earnings report 2026
Workday co-founder Aneel Bhusri speaks at the Workday Charity Classic at the Stanford University golf course on August 28, 2024 in Stanford, California.
David Paul Morris | Bloomberg | Getty Images
Working day Shares fell 10% in extended trading Tuesday after the human resources and financial software maker announced soft quarterly guidance.
The company’s performance according to the LSEG consensus is as follows:
- Earnings per share: $2.47 vs expected $2.32
- Revenues: 2.53 billion dollars, while the expectation was 2.52 billion dollars
Workday’s revenue grew 14.5% year over year in the fiscal fourth quarter ending Jan. 31. expression. Net income of $145 million, or 55 cents per share, was up from $94 million, or 35 cents per share, in the same period a year ago.
Adjusted earnings per share excludes the impact of share-based compensation expense.
Workday called for an adjusted operating margin of 30.5% on $2.335 billion in subscription revenue for the fiscal first quarter. Analysts surveyed by StreetAccount were expecting margins of 30.9% and subscription revenue of $2.35 billion.
For fiscal 2027, Workday projects adjusted operating margin of 30%, with $9.93 billion to $9.95 billion in subscription revenue; This means a growth of 12% to 13%.
Investors have become increasingly concerned in recent weeks that artificial intelligence models could constrain the growth of major software companies. As of Tuesday’s close, Workday shares were down 39% for 2026; This would be the sharpest decline on record since the company went public in 2012.
On Feb. 9, Workday said CEO Carl Eschenbach would step down after three years and be replaced by co-founder Aneel Bhusri.
The company is adding productive AI features to its portfolio, and its annual revenue from AI products now exceeds $400 million.
During the quarter, Workday said it would release an AI agent to manage requests. changing work shifts. Workday was also acquired empty dreamA startup with tools to connect AI agents to various external services.
“You’ve all heard the narrative that HR and ERP will be replaced or put on the back burner by AI,” Bhusri said in a conference call with analysts, using the acronym for enterprise resource planning. he said. “I personally don’t think that’s going to happen.”
Rob Enslin, the company’s chief commercial officer, said some deals with large new customers, including the federal government and health care, are taking longer to close.
“Aneel’s focus is on driving growth beyond just capturing operating margin,” said Zane Rowe, Workday’s chief financial officer.
WRISTWATCH: Workday CEO Carl Eschenbach: AI is a headwind for us, “definitely not” a headwind
