Workday, Inc. (WDAY) FY2026 10-K Annual Report

Filed: Mar 6, 2026
Information Technology
Services-Computer Processing & Data PreparationSEC EDGAR

Workday, Inc. (WDAY) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Mar 6, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Workday, Inc. FY2026 10-K Analysis

Business Overview

  • Enterprise cloud platform for HR and finance management, serving 11,500+ organizations including 65%+ of Fortune 500, with 75M+ users under contract
  • Four AI-focused acquisitions in FY2026: FlowiseAI, Paradox, Sana Labs, and Pipedream; also launched Workday Build, Workday Data Cloud, and Workday Government as new offerings
  • Strategic pivot to "enterprise AI platform" branding, with AI agents now central to product — new Flex Credits pricing model introduced for AI solutions to drive scalable adoption
  • Global workforce over 21,000 employees across 36 countries as of January 31, 2026; 100% Code of Conduct training completion rate in FY2026
  • Announced Workday Agent Partner Network including Microsoft partnership, enabling customers to register and manage Microsoft-built agents within Workday's Agent System of Record

Management Discussion & Analysis

  • Revenue $9.6B, up 13% YoY; subscription $8.8B (+14%), professional services $719M (-1%)
  • GAAP operating margin 7.5% vs 4.9%; non-GAAP operating margin 29.6% vs 25.9%
  • Operating cash flow $2.9B vs $2.5B; free cash flow $2.8B vs $2.2B; capex $162M vs $269M
  • Share repurchases $2.9B (12.8M shares); $2.9B remaining authorization; two acquisitions totaling $2.2B (Paradox + Sana)
  • Key risks: extended sales cycles in government/higher ed/healthcare tied to federal funding; $303M restructuring costs; Fiscal 2027 plan targets additional ~2% workforce reduction

Risk Factors

  • EU AI Act compliance underway; GDPR non-compliance penalties up to 4% of worldwide revenue; U.S. DOJ Data Security Program effective April 8, 2025 restricts data transfers to China
  • Macroeconomic volatility driving customer delays in purchasing decisions, price concessions, and demand reduction; tariff concerns cited as specific pressure on enterprise software spending
  • CEO transition February 2026: Aneel Bhusri replaced Carl Eschenbach; co-founder leadership change risks cultural disruption and talent retention
  • Primary competitors Oracle and SAP have entrenched customer relationships; emerging threat from generic LLMs, "vibe coding," and agentic AI platforms potentially displacing purpose-built HCM/financials
  • $3.0B senior notes outstanding (3.5%–3.8%, maturing 2027–2032) plus $1.0B revolving credit facility with leverage ratio covenant

Workday, Inc. FY2026 Key Financial Metrics
XBRL

Revenue

$9.6B

+13.1% YoY

Net Income

$693M

+31.7% YoY

Operating Margin

7.5%

+263bp YoY

Net Margin

7.3%

+103bp YoY

ROE

8.9%

+306bp YoY

Total Assets

$18.1B

+0.5% YoY

EPS (Diluted)

$2.59

+32.8% YoY

Operating Cash Flow

$2.9B

+19.4% YoY

Source: XBRL data from Workday, Inc. FY2026 10-K filing on SEC EDGAR. All figures in USD.

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