Core Insights - Workday's shares surged over 10% in premarket trading following the release of its fiscal 2025 fourth-quarter results, which exceeded analysts' expectations [2][5] - The company reported revenue of $2.21 billion, including $2.04 billion in subscription revenue, both surpassing Visible Alpha consensus [2] - Adjusted earnings per share (EPS) were $1.92, also exceeding estimates [2] Financial Performance - Workday projected first-quarter subscription revenue of $2.05 billion and $8.80 billion for fiscal 2026, aligning closely with analysts' estimates [3] Strategic Opportunities - CEO Carl Eschenbach highlighted growth opportunities with the U.S. federal government due to the administration's focus on efficiency and IT modernization [4] - The growth of Workday's AI products is central to discussions with customers, as they seek significant returns on investment to drive business growth [4][5]

New Partnership Combines Workday Recruiting Agent with Randstad's Expansive Talent Network to Instantly Connect Recruiters with Top Talent, Making Hiring Faster and More Efficient Than Ever Before PLEASANTON, Calif., Feb. 26, 2025 /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people and money, and Randstad, the world's leading talent company, today announced a new strategic partnership to transform how companies find and hire talent. By integrating Workday's Recruiting Agent, po ...

Investor Presentation Q4 FY25 Safe Harbor Statement This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancements or upgrades to our existing applications or plans for future applications; any projections of revenues, gross margins, earnings, or other financial items; and any statements of expecta ...

Workday, Inc. (NASDAQ:WDAY) Q4 2025 Earnings Conference Call February 25, 2025 4:30 PM ET Company Participants Justin Furby - VP of IR Carl Eschenbach - CEO Zane Rowe - CFO David Somers - Chief Product Officer Conference Call Participants Mark Murphy - JPMorgan Kash Rangan - Goldman Sachs Kirk Materne - Evercore ISI Brad Sills - Bank of America Raimo Lenschow - Barclays Michael Turrin - Wells Fargo Brent Thill - Jefferies Alex Zukin - Wolfe Research John DiFucci - Guggenheim Karl Keirstead - UBS Chris Quint ...

Workday (WDAY) Q4 2025 Earnings Call February 26, 2025 12:50 AM ET Company Participants Justin Furby - Vice President of IRCarl Eschenbach - CEOZane Rowe - Chief Financial OfficerMark Murphy - Executive DirectorDavid Somers - Chief Product OfficerKash Rangan - Managing DirectorRaimo Lenschow - Managing DirectorBrent Thill - Tech Sector Leader, Software/Internet ResearchJohn DiFucci - Senior Managing DirectorKarl Keirstead - Managing Director - Software Equity Research Conference Call Participants Kirk Mater ...

Core Insights - Workday reported revenue of $2.21 billion for the quarter ended January 2025, reflecting a 15% increase year-over-year and a surprise of +1.44% over the Zacks Consensus Estimate of $2.18 billion [1] - Earnings per share (EPS) for the quarter was $1.92, compared to $1.57 in the same quarter last year, resulting in an EPS surprise of +9.71% against the consensus estimate of $1.75 [1] Financial Performance Metrics - Subscription Revenue Backlog reached $25.06 billion, exceeding the two-analyst average estimate of $24.87 billion [4] - Subscription services revenue was reported at $2.04 billion, slightly above the average estimate of $2.02 billion from eight analysts, marking a year-over-year increase of +15.9% [4] - Professional services revenue amounted to $171 million, surpassing the average estimate of $154.84 million from eight analysts, with a year-over-year change of +5.6% [4] Stock Performance - Workday's shares have returned -0.9% over the past month, compared to a -1.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Workday surpassed earnings expectations with a non-GAAP EPS of $1.92, exceeding the anticipated $1.78, and total revenue grew by 15.0% year-over-year to $2.211 billion, surpassing estimates of $2.183 billion [2][3] - The company emphasized its focus on AI integration across its cloud-based software solutions for human capital management and financial management, enhancing operational efficiency [4][11] Financial Performance - Non-GAAP EPS increased by 22.3% year-over-year from $1.57 in Q4 FY 2024 [3] - Total revenue reached $2.211 billion, up from $1.922 billion in Q4 FY 2024, reflecting a 15.0% increase [3] - Subscription revenue rose by 15.9% year-over-year to $2.040 billion [3] - Non-GAAP operating margin improved to 26.4%, up from 24.0% in the previous year [3][7] Business Strategy - Workday's strategy focuses on dynamic product development and strategic partnerships, enhancing efficiency across multiple business functions [5] - The company has integrated AI capabilities into its product lineup, which includes partnerships with Randstad and TechWolf [6][11] Challenges and Competition - Workday faces challenges from intense competition and economic uncertainties, particularly in regions like EMEA, which have affected deal scrutiny and profitability [8][9] - Restructuring expenses totaled $75 million, impacting GAAP earnings [7][8] Future Outlook - For fiscal 2026, Workday anticipates subscription revenue growth of 14%, targeting $8.8 billion, and aims for an improved non-GAAP operating margin of approximately 28.0% [10] - The company plans to continue investing in AI innovation and international expansion to sustain long-term growth [11]

Core Insights - Workday reported better-than-expected quarterly results, with shares rising over 7% in extended trading [1] - Revenue increased by 15% year over year, reaching $2.21 billion, while net income fell to $94 million, or 35 cents per share [1][5] - The previous year's results were positively impacted by a $1.1 billion release of valuation allowance related to deferred tax assets [2] Financial Performance - Workday's revenue for the quarter ending January 31 was $2.21 billion, exceeding the expected $2.18 billion [5] - Adjusted earnings per share were $1.92, surpassing the expected $1.78 [5] - The company anticipates a 28% adjusted operating margin on $2.05 billion in subscription revenue for the fiscal first quarter, higher than the analyst expectation of 26.7% [3] Future Outlook - For the fiscal year 2026, Workday projects an adjusted margin of 28% with $8.8 billion in subscription revenue, indicating a 14% growth [4] - The company is experiencing increased demand for artificial intelligence tools, which is expected to enhance its HR and finance solutions [2] - Workday's new president and chief commercial officer, Rob Enslin, was appointed during the quarter, indicating a strategic move to bolster leadership [3]

Financial Outlook - Workday expects its fiscal 2025 fourth quarter and full-year financial results to be in-line with or above its previous guidance, except for GAAP operating margin, which is projected to be 22 to 23 percentage points lower than non-GAAP for Q4 and 21 percentage points lower for the full year [5]. - Workday's financial outlook for the fourth quarter and fiscal year ending January 31, 2025, includes forward-looking statements that are subject to risks and uncertainties [13]. - Workday's actual results may differ materially from its forward-looking statements due to various risks, including potential higher costs associated with the restructuring plan [13]. Restructuring Plan - The company announced a restructuring plan that will eliminate approximately 1,750 positions, representing 8.5% of its current workforce, while continuing to hire in key strategic areas [7]. - Workday estimates it will incur charges of approximately $230 million to $270 million related to the restructuring plan, with $60 million to $70 million expected to be recognized in Q4 of fiscal 2025 [8]. - The restructuring plan includes approximately $145 million to $175 million in future cash expenditures for severance and employee benefits, and $50 million to $60 million in non-cash charges for stock-based compensation [8]. - The actions associated with the restructuring plan are expected to be substantially complete by the second quarter of fiscal 2026 [9]. - The company plans to exit certain owned office space as part of the restructuring efforts [7]. - Workday's restructuring plan aims to prioritize investments and focus on durable growth [7]. - The company will recognize impairment charges related to office space in the first quarter of fiscal 2026 [11].

Financial Performance - Total revenues for fiscal Q4 2025 reached $2.211 billion, marking a 15.0% increase year-over-year [1][6] - Subscription revenues for the same period were $2.040 billion, up 15.9% from the previous year [1][6] - For the full fiscal year 2025, total revenues amounted to $8.446 billion, reflecting a 16.4% year-over-year growth [1][6] - Subscription revenues for fiscal year 2025 were $7.718 billion, an increase of 16.9% compared to fiscal 2024 [1][6] Operating Metrics - Operating cash flows for fiscal year 2025 were $2.461 billion, a 14.5% increase from the prior year [1][6] - Non-GAAP operating income for Q4 2025 was $584 million, representing 26.4% of revenues, compared to 24.0% in the same period last year [6][21] - The company reported diluted net income per share of $0.35 for Q4 2025, down from $4.42 in Q4 2024, impacted by restructuring expenses [6][21] Future Guidance - The company anticipates subscription revenue of $8.800 billion for fiscal 2026, indicating a growth of 14% [5][15] - Non-GAAP operating margin for fiscal 2026 is expected to be approximately 28.0% [5][15] Strategic Developments - Workday announced a restructuring plan aimed at prioritizing investments and achieving durable growth, which is expected to reduce the workforce by approximately 8% [18][19] - The company repurchased approximately 2.9 million shares of Class A common stock for $700 million as part of its share repurchase program [6][19] Market Position - Workday is utilized by over 11,000 organizations globally, including more than 60% of the Fortune 500 [11][15] - The company welcomed new core customers and expanded existing relationships, indicating strong market demand [15]