Revenue growth has decelerated from 19.3% in 2025Q1 to 13.5% in 2027Q1, while operating margins remain constrained between 1.7% and 13.3% due to heavy R&D and SG&A spending.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 |
|---|
| Sales/Revenue | 9.85B | 9.55B | 8.45B | 7.26B | 6.22B | 5.14B | 4.32B | 3.63B | 2.82B | 2.14B | 1.57B | 1.16B | 787.86M | 468.94M | 273.66M | 134.43M | 68.06M |
| Revenue Growth % | 13.32% | 13.1% | 16.35% | 16.78% | 20.96% | 19.01% | 19.04% | 28.52% | 31.69% | 36.12% | 36.12% | 46.81% | 68.01% | 71.36% | 103.57% | 97.53% | - |
| Cost of Goods Sold | 2.39B | 2.32B | 2.07B | 1.77B | 1.71B | 1.43B | 1.2B | 1.07B | 834.95M | 629.41M | 483.55M | 374.43M | 264.8M | 176.81M | 116.53M | 65.37M | 39.86M |
| COGS % of Revenue | - | 24.3% | 24.5% | 24.4% | 27.51% | 27.79% | 27.75% | 29.37% | 29.59% | 29.37% | 30.71% | 32.37% | 33.61% | 37.7% | 42.58% | 48.63% | 58.58% |
| Gross Profit | 7.47B | 7.23B | 6.38B | 5.49B | 4.51B | 3.71B | 3.12B | 2.56B | 1.99B | 1.51B | 1.09B | 782.26M | 523.06M | 292.13M | 157.12M | 69.06M | 28.19M |
| Gross Margin % | 75.77% | 75.7% | 75.5% | 75.6% | 72.49% | 72.21% | 72.25% | 70.63% | 70.41% | 70.63% | 69.29% | 67.63% | 66.39% | 62.3% | 57.42% | 51.37% | 41.42% |
| Gross Profit Growth % | - | 13.39% | 16.2% | 21.79% | 21.42% | 18.95% | 21.78% | 28.92% | 31.29% | 38.75% | 39.45% | 49.56% | 79.05% | 85.92% | 127.52% | 144.97% | - |
| Operating Expenses | 6.32B | 6.21B | 5.96B | 5.3B | 4.73B | 3.83B | 3.37B | 3.06B | 2.45B | 1.82B | 1.44B | 1.03B | 738.76M | 445.41M | 274.99M | 147.5M | 84.25M |
| OpEx % of Revenue | - | 64.98% | 70.59% | 73.08% | 76.06% | 74.47% | 78.01% | 84.48% | 86.83% | 84.78% | 91.71% | 89.22% | 93.77% | 94.98% | 100.49% | 109.73% | 123.8% |
| Selling, General & Admin | 3.59B | 5.2B | 3.25B | 2.84B | 2.44B | 1.95B | 1.65B | 1.51B | 1.24B | 906.28M | 763.45M | 562.11M | 421.89M | 263.29M | 172.32M | 85.49M | 45.08M |
| SG&A % of Revenue | - | 54.44% | 38.5% | 39.14% | 39.27% | 37.91% | 38.15% | 41.75% | 43.89% | 42.29% | 48.49% | 48.6% | 53.55% | 56.15% | 62.97% | 63.6% | 66.24% |
| Research & Development | 2.72B | 2.68B | 2.63B | 2.46B | 2.25B | 1.88B | 1.72B | 1.55B | 1.21B | 910.58M | 680.53M | 469.94M | 316.87M | 182.12M | 102.67M | 62.01M | 39.17M |
| R&D % of Revenue | - | 28.04% | 31.09% | 33.94% | 36.15% | 36.56% | 39.86% | 42.73% | 42.94% | 42.49% | 43.22% | 40.63% | 40.22% | 38.84% | 37.52% | 46.13% | 57.56% |
| Other Operating Expenses | 2M | -1.67B | 84M | 0 | 40M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.15B | 1.02B | 415M | 183M | -222M | -116M | -248.6M | -502.23M | -463.28M | -303.22M | -353.09M | -249.79M | -215.7M | -153.28M | -117.86M | -78.44M | -56.06M |
| Operating Margin % | 11.66% | 10.72% | 4.91% | 2.52% | -3.57% | -2.26% | -5.76% | -13.85% | -16.42% | -14.15% | -22.43% | -21.6% | -27.38% | -32.69% | -43.07% | -58.35% | -82.38% |
| Operating Income Growth % | - | 146.75% | 126.78% | 182.43% | -91.38% | 53.34% | 50.5% | -8.41% | -52.79% | 14.12% | -41.35% | -15.8% | -40.72% | -30.05% | -50.25% | -39.93% | - |
| EBITDA | 1.5B | 1.37B | 741M | 465M | 142M | 228M | 45.06M | -225.95M | -265.17M | -167.5M | -247.26M | -163.85M | -156.5M | -118.59M | -100.14M | -69.13M | -50.75M |
| EBITDA Margin % | 15.26% | 14.35% | 8.77% | 6.41% | 2.28% | 4.44% | 1.04% | -6.23% | -9.4% | -7.82% | -15.7% | -14.17% | -19.86% | -25.29% | -36.59% | -51.42% | -74.57% |
| EBITDA Growth % | 107.45% | 85.02% | 59.35% | 227.46% | -37.72% | 406.01% | 119.94% | 14.79% | -58.31% | 32.26% | -50.91% | -4.7% | -31.97% | -18.42% | -44.87% | -36.21% | - |
| D&A (Non-Cash Add-back) | 355M | 347M | 326M | 282M | 364M | 344M | 293.66M | 276.28M | 198.11M | 135.72M | 105.83M | 85.94M | 59.2M | 34.7M | 17.72M | 9.32M | 5.31M |
| EBIT | 1.32B | 1.01B | 752M | 470M | -158M | 33M | -206.33M | -423.76M | -363.54M | -270.24M | -355.41M | -242.1M | -214.91M | -151.21M | -117.7M | -78.49M | -55.9M |
| Net Interest Income | 167M | 204M | 236M | 187M | -5M | -12M | -50.02M | -17.42M | -17.75M | -19.3M | -18.8M | -27.08M | -28.1M | -17.63M | -803K | -908K | -133K |
| Interest Income | 279M | 318M | 350M | 301M | 97M | 5M | 18.79M | 41.27M | 42.46M | 25.25M | 11.3M | 4.86M | 2.96M | 1.99M | 560K | 68K | 88K |
| Interest Expense | 112M | 114M | 114M | 114M | 102M | 17M | 68.81M | 58.69M | 60.21M | 44.55M | 30.1M | 31.93M | 31.06M | 19.62M | 1.36M | 976K | 221K |
| Other Income/Expense | 112M | -15M | 223M | 173M | -38M | 132M | -26.54M | 19.78M | 39.53M | -11.56M | -32.43M | -24.24M | -30.27M | -17.55M | -1.2M | -1.02M | -57K |
| Pretax Income | 1.26B | 1.01B | 638M | 356M | -260M | 16M | -275.13M | -482.45M | -423.75M | -314.79M | -385.51M | -274.03M | -245.97M | -170.83M | -119.07M | -79.46M | -56.12M |
| Pretax Margin % | 12.8% | 10.56% | 7.55% | 4.9% | -4.18% | 0.31% | -6.37% | -13.3% | -15.02% | -14.69% | -24.49% | -23.69% | -31.22% | -36.43% | -43.51% | -59.11% | -82.46% |
| Income Tax | 414M | 316M | 112M | -1.02B | 107M | -13M | 7.3M | -1.77M | -5.49M | 6.44M | -814K | 1.02M | 2.01M | 1.68M | 124K | 167K | 97K |
| Effective Tax Rate % | 32.83% | 31.32% | 17.55% | -287.92% | -41.15% | -81.25% | -2.65% | 0.37% | 1.3% | -2.04% | 0.21% | -0.37% | -0.82% | -0.98% | -0.1% | -0.21% | -0.17% |
| Net Income | 847M | 693M | 526M | 1.38B | -367M | 29M | -282.43M | -480.67M | -418.26M | -321.22M | -384.7M | -275.05M | -247.98M | -172.51M | -119.19M | -79.63M | -56.22M |
| Net Margin % | 8.6% | 7.26% | 6.23% | 19.02% | -5.9% | 0.56% | -6.54% | -13.25% | -14.82% | -14.99% | -24.43% | -23.78% | -31.48% | -36.79% | -43.55% | -59.24% | -82.6% |
| Net Income Growth % | 73.92% | 31.75% | -61.91% | 476.29% | -1365.52% | 110.27% | 41.24% | -14.92% | -30.21% | 16.5% | -39.87% | -10.91% | -43.75% | -44.73% | -49.68% | -41.65% | - |
| Net Income (Continuing) | 847M | 693M | 526M | 1.38B | -367M | 29M | -282.43M | -480.67M | -418.26M | -321.22M | -384.7M | -275.05M | -247.98M | -172.51M | -119.19M | -79.63M | -56.22M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.33 | 2.58 | 1.95 | 5.21 | -1.44 | 0.12 | -1.19 | -2.12 | -1.93 | -1.55 | -2.06 | -1.53 | -1.35 | -1.01 | -1.61 | -0.35 | -0.25 |
| EPS Growth % | 76.8% | 32.31% | -62.57% | 461.81% | -1300% | 110.08% | 43.87% | -9.84% | -24.52% | 24.76% | -34.64% | -13.33% | -33.66% | 37.27% | -360% | -40% | - |
| EPS (Basic) | - | 2.60 | 1.98 | 5.28 | -1.44 | 0.12 | -1.19 | -2.12 | -1.93 | -1.55 | -2.06 | -1.53 | -1.35 | -1.01 | -1.61 | -0.35 | -0.25 |
| Diluted Shares Outstanding | 254.31M | 263.41M | 269.2M | 265.29M | 254.82M | 254.03M | 237.02M | 227.19M | 216.79M | 207.77M | 198.21M | 190.02M | 183.7M | 171.3M | 74.01M | 226.07M | 226.07M |
| Basic Shares Outstanding | 253.89M | 261.27M | 265.26M | 261.34M | 254.69M | 247.25M | 237.02M | 226.73M | 216.79M | 207.77M | 198.21M | 190.02M | 183.7M | 171.3M | 74.01M | 226.07M | 226.07M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Market saturation and competition
As reported in recent financial filings, Workday's revenue growth has decelerated from 19.3% in 2025Q1 to 13.5% by 2027Q1, signaling that the company is increasingly contending with the law of large numbers as it attempts to penetrate deeper into the enterprise financial management software market.
The consistent decline in year-over-year revenue growth suggests that the initial rapid adoption phase of its core HCM platform is maturing. Investors should monitor whether the company can successfully cross-sell its financial modules to existing customers, as this remains the primary lever to offset the slowing growth in its legacy HR segment.
Based on the provided income statement data, Workday has maintained a remarkably consistent gross margin profile, hovering near 76% over the last ten quarters, which reflects the inherent scalability of its cloud-native architecture despite the ongoing costs associated with maintaining global data center infrastructure and support.
This stability indicates that the company possesses significant pricing power and has successfully managed the costs of its subscription-heavy revenue model. However, the lack of meaningful expansion in gross margins suggests that the company has yet to achieve the economies of scale typically seen in more mature software utilities.
According to the latest quarterly figures, operating margins have fluctuated between 1.7% and 13.3%, indicating that Workday has struggled to consistently scale its operating income faster than its gross profit due to persistent, high levels of investment in research, development, and sales and marketing infrastructure.
The high ratio of SG&A and R&D relative to gross profit suggests that the company is prioritizing market share capture over immediate bottom-line optimization. This strategy warrants further investigation into whether management can eventually pivot toward a more efficient operating model without sacrificing its competitive moat.
As evidenced by the income statement, Workday consistently records substantial stock-based compensation expenses, often exceeding $400 million per quarter, which significantly dilutes the quality of reported net income and complicates the assessment of the company's true underlying profitability and cash-generating capability for common shareholders.
The reliance on equity-based compensation as a primary tool for talent retention creates a persistent gap between GAAP earnings and actual cash flow. Investors should be cautious of this structural expense, as it effectively shifts the burden of compensation from the income statement to the equity base.
Quick answers to the most common questions about buying WDAY stock.
For fiscal year 2026, Workday, Inc. (WDAY) reported total revenue of $9.55B. This represents a 13935.7% increase compared to $68.1M in 2011.
Workday, Inc. (WDAY) is profitable, generating $693.0M in net income for the fiscal year ending 2026 with a net profit margin of 7.3%.
Workday, Inc. (WDAY) reported an operating income of $1.02B, resulting in an operating profit margin of 10.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Workday, Inc. (WDAY) generated $7.23B in gross profit for the year, representing a gross profit margin of 75.7%. This demonstrates the company's core pricing power and production efficiency.