Workday Inc (NASDAQ:WDAY) delivered better-than-expected results for FY26 Q1, reporting $2.24 billion in revenue and non-GAAP EPS of $2.23. A standout metric was the non-GAAP operating margin, which topped 30%—a pleasant surprise, though it should be viewed with some caution given the adjusted nature of the figure. Double-digit revenue growth continued both domestically and internationally, but the pace of growth has decelerated.
This may explain the slightly underwhelming forward guidance, which came in lighter than some analysts had hoped—particularly in light of the commentary around new wins in industries where Workday has historically lacked traction. While full-year subscription revenue guidance remained unchanged, the company did raise its full-year operating margin guidance by 50 basis points.
Workday appears to be executing steadily against its long-term strategy. However, with the company continuing to emphasize a large total addressable market (TAM), investors may be starting to look for signs of a real inflection point to justify continued enthusiasm.
For more details, key highlights, and commentary, check out the high-level earnings summary.
