Workday(US:WDAY) Prnewswire·2025-05-22 20:01Core Insights - Workday, Inc. reported total revenues of $2.240 billion for the fiscal first quarter of 2026, reflecting a year-over-year increase of 12.6% [1][7] - Subscription revenues reached $2.059 billion, marking a 13.4% increase compared to the same period last year [1][7] - The company reaffirmed its fiscal 2026 subscription revenue guidance of $8.8 billion and increased its non-GAAP operating margin guidance to approximately 28.5% [4] Financial Performance - Operating income for the first quarter was $39 million, or 1.8% of revenues, down from $64 million (3.2% of revenues) in the same quarter last year, impacted by restructuring expenses of $166 million [7][20] - Non-GAAP operating income was $677 million, representing 30.2% of revenues, compared to $515 million (25.9% of revenues) in the prior year [7][26] - Diluted net income per share was $0.25, down from $0.40 in the same quarter last year, while non-GAAP diluted net income per share increased to $2.23 from $1.74 [7][26] Cash Flow and Share Repurchase - Operating cash flows were $457 million, an increase from $372 million in the previous year, while free cash flows rose to $421 million from $291 million [7][29] - Workday repurchased approximately 1.3 million shares of Class A common stock for $293 million and announced a new share repurchase program of up to $1.0 billion [7][8] Strategic Developments - Workday introduced new Illuminate Agents aimed at enhancing hiring processes and improving employee experiences [8] - The company expanded its customer base, welcoming new clients such as Dover Corporation and United Airlines, while also strengthening existing relationships with major companies [8] - Workday was recognized as a leader in the 2025 Gartner Magic Quadrant for Higher Education Student Information System Software as a Service and Talent Acquisition Suites [8]