Revenue growth has decelerated to 12.9% in 2027Q2, yet operating income expanded 27.8% YoY, suggesting emerging operating leverage despite gross margins remaining stable in the 75-76% range.
Workday, Inc. (WDAY) annual income statement — 16-year revenue, gross profit & net income history
| 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 | 10.16B | 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 % | 13.37% | 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 | 2.46B | 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 | 7.7B | 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 % | 75.8% | 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 | 6.48B | 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 | 3.67B | 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 | 2.81B | 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 | 1000K | -1.67B | 84M | 0 | 40M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.22B | 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 % | 11.99% | 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 | 1.58B | 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 % | 15.58% | 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 % | 83.1% | 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) | 364M | 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 | 1.3B | 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 | 120M | 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 | 231M | 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 | 111M | 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 | 66M | -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 | 1.28B | 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 % | 12.64% | 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 | 33M | 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 % | 2.57% | 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 | 1.25B | 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 % | 12.32% | 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 % | 114.58% | 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) | 1.25B | 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) | 5.00 | 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 % | 128.24% | 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 | 250.24M | 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 | 249.46M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Growth deceleration amid macro caution
Metrics are mathematically derived from official filings.
Growth Deceleration Amid Macro Headwinds
Workday's revenue growth has decelerated from 19.3% in 2025Q1 to 12.9% in 2027Q2, a trend that appears to reflect both the law of large numbers and potential elongation in large-deal sales cycles for its Financials module.
The sequential decline in year-over-year revenue growth suggests the company is facing a more challenging demand environment, particularly for new, large-scale transformations. This deceleration warrants close monitoring of the 24-month RPO growth, as a continued slowdown could indicate saturation in the core US HCM market and a slower-than-expected ramp for the Financials product line.
Gross Margin Stability vs. Operating Leverage Lag
Gross margins have remained remarkably stable in the 75-76% range, yet operating margins have only recently expanded to 12.0%, suggesting that significant operating leverage has yet to be fully realized despite the high-margin subscription base.
The consistent gross margin indicates strong pricing power and efficient delivery of the core SaaS platform. However, the lag in operating margin expansion implies that SG&A and R&D spending have grown nearly in lockstep with revenue, potentially due to continued heavy investment in sales and product development for the Financials segment. Investors should monitor whether the recent uptick to a 12% operating margin is sustainable or a quarterly anomaly.
Operating Leverage Emerges in Recent Quarters
Operating income grew 27.8% year-over-year in 2027Q2, outpacing revenue growth of 12.9%, which may indicate that the company is beginning to achieve better expense discipline and scale its high-margin subscription revenue more efficiently.
This positive divergence between operating income and revenue growth is a welcome sign after quarters of minimal leverage. It suggests that management's focus on operational efficiency is starting to translate to the bottom line, though the sustainability of this trend depends on controlling the significant stock-based compensation expense, which remains a major non-cash drag on GAAP profitability.
SBC and Tax Rate Volatility Distort Earnings
Stock-based compensation reached $462 million in 2027Q2, representing a substantial portion of operating expenses and significantly diluting the quality of reported net income, which swung wildly from $145 million to $632 million over two quarters.
The extreme volatility in net income and EPS, despite relatively stable operating income, points to significant non-operating items, likely including tax adjustments and investment gains. This makes headline earnings figures an unreliable indicator of core operational performance. Analysts should focus on operating income and free cash flow as cleaner measures of the company's underlying profitability.
R&D and SG&A Dominate the Cost Structure
R&D and SG&A expenses consistently consume over 60% of total revenue, highlighting the company's heavy investment in innovation and customer acquisition, which appears necessary to defend its market position against entrenched rivals like Oracle and SAP.
The magnitude of these expenses underscores the competitive intensity of the enterprise software market. While essential for long-term product differentiation, this cost structure leaves limited room for error. Any sustained pressure on revenue growth could quickly compress operating margins, as these large fixed-cost bases offer limited flexibility for rapid adjustment.
Margin Expansion May Be Structurally Capped
Despite a 75%+ gross margin, Workday's operating margin of 12% lags peers like Oracle (30.8%) and SAP (26.1%), suggesting that its path to mature profitability may be constrained by the high-touch nature of its implementation model and relentless competitive spending.
The persistent gap in operating margins versus larger, more mature peers indicates that Workday may not achieve similar profitability without a fundamental shift in its go-to-market strategy, such as a greater reliance on third-party system integrators. Furthermore, the need to continually invest in R&D to match AI capabilities from hyperscalers and competitors could permanently cap margin expansion, challenging the long-term earnings power implied by its premium valuation.