10-Q · May 22, 2026
Workday, Inc. reported strong Q1 fiscal 2027 results with total revenues of $2.542 billion, up 13% year-over-year and surpassing estimates. Gross margin improved to 76%, while diluted EPS increased to $2.66, reflecting…
Earnings analysis · 10-Q
WDAY earnings analysis
Filed August 27, 2026 · Our reading of the company's report
The latest report
The supplied filing extract is limited primarily to market-risk disclosures, risk factors, equity repurchases, and controls; it does not provide the current-quarter income statement, cash flow statement, balance-sheet…
Read full summary
The supplied filing extract is limited primarily to market-risk disclosures, risk factors, equity repurchases, and controls; it does not provide the current-quarter income statement, cash flow statement, balance-sheet detail beyond investments, segment results, or MD&A outlook. Liquidity declined from $5.4 billion to $3.4 billion between January 31 and July 31, 2026, while the company completed its $4.0 billion repurchase authorization. Workday also carries $3.0 billion of Senior Notes and faces heightened competition, cybersecurity, privacy, AI-regulatory, and international operating risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Liquidity declined by $2.0 billion
Cash, cash equivalents, and marketable securities totaled $3.4 billion at July 31, 2026, versus $5.4 billion at January 31, 2026, a $2.0 billion decrease.
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Completed $4.0 billion repurchase program
Workday repurchased 9.783 million Class A shares during the quarter, including 3.708 million shares in July at an average price of $141.56.
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No revolver borrowings outstanding
The company had no outstanding revolving loans under its $1.0 billion 2022 Credit Agreement as of July 31, 2026.
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Controls remained effective
Management concluded that disclosure controls were effective at a reasonable assurance level and reported no material change in internal control over financial reporting during the quarter.
What to watch
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Interest-rate sensitivity increased
The investment portfolio had approximately $3.4 billion of cash, cash equivalents, and marketable securities at July 31, 2026; a hypothetical 100-basis-point rate increase would have reduced its market value by approximately $43 million.
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Debt maturities remain material
Workday has $3.0 billion of Senior Notes outstanding, consisting of $1.0 billion due April 1, 2027, $750 million due April 1, 2029, and $1.25 billion due April 1, 2032.
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Privacy and AI regulation risk
The filing identifies EU GDPR penalties of up to 4% of worldwide revenue for noncompliance, while the EU-U.S. Data Privacy Framework remains subject to legal challenges.
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Repurchases reduced financial flexibility
The $4.0 billion repurchase authorization was fully completed as of July 31, 2026, leaving $0 of authorization remaining and reducing cash available for working capital, debt repayment, capital expenditures, and acquisitions.
Management's outlook
The supplied 10-Q text does not include MD&A, financial statements, segment results, or quantitative outlook. Numeric guidance is therefore not available in the provided filing extract.
Earlier filings 4
10-K · March 6, 2026
Workday positions itself as an enterprise AI platform unifying HR, finance, planning and AI agents, emphasizing scale (more than 11,500 customers, >75 million users) and extensive AI product investment (Workday AI…
10-Q · November 26, 2025
Workday reported strong Q3 results with revenue of $2,432 million (up $272 million, +12.6% YoY) and diluted EPS of $0.94 (vs $0.72 prior year). Gross margin held at ~75.7% and operating margin expanded to 10.7% from…
10-Q · August 22, 2025
Workday reported revenue of $2,348.0 million for the three months ended July 31, 2025, up $263.0 million year-over-year (from $2,085.0 million), with operating income rising to $248.0 million (10.6% operating margin)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.