Workday Announces Fiscal 2025 Fourth Quarter and Full Year Financial Results

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]