Filing Flows › Workday (WDAY) › Q1 FY26
Workday (WDAY) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed May 23, 2025
Workday (WDAY) reported revenue of $2.2B for the first quarter fiscal 2026 (Q1 FY26), +13% from a year earlier and +1% from the quarter before. Operating margin was 1.7%, net earnings $68.0M (3.0% of revenue).
Workday, Q1 FY26: revenue $2.2B (+13% year over year), operating margin 1.7%, net earnings $68.0M, operating cash flow $457M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.2B | +1% | +13% |
| Operating profit | $39.0M | -48% | -39% |
| Net earnings | $68.0M | -28% | -36% |
| Operating cash flow | $457M | -59% | +23% |
| Free cash flow | $421M | -59% | +45% |
What changed
Revenue was $2.2B in Q1 FY26, up 13% year over year and up 1% from the previous quarter. Subscription services was the largest line at 92% of revenue. Subscription services added $0.24B year over year (up 13%), 98% of the total change.
Operating profit was $0.04B, a 1.7% margin (down 1.5 points year over year). Operating profit fell $0.03B even though revenue rose $0.25B versus a year earlier, so costs grew faster than sales. Total costs grew 14% against revenue growth of 13%. The fastest-growing cost line was Other operating costs (+41%). Net earnings were $0.07B, down 36% year over year. The effective tax rate was 34.0%. Non-operating items added $0.06B, 62% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.46B (up 23% year over year), 672% of net earnings. Non-cash charges added back $0.08B of depreciation and amortization and $0.46B of share-based compensation. Working capital and other items used $0.15B. Capital expenditures of $0.04B left free cash flow of $0.42B.
Questions
What was Workday's revenue in the first quarter fiscal 2026?
Workday (WDAY) reported revenue of $2.2B for the first quarter fiscal 2026 (Q1 FY26), +13% from a year earlier and +1% from the quarter before.
Was Workday profitable in the first quarter fiscal 2026?
Operating profit was $39.0M (1.7% of revenue) and net earnings $68.0M.
Source: Workday 10-Q on SEC EDGAR.