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Workday Reports $2.5 Billion in Revenue for First Quarter of Fiscal Year 2027
Continued growth in AI-based enterprise platform business, maintaining upward trend in subscription revenue and order backlog.
Workday, an enterprise AI-based HR and finance software company, announced its earnings for the first quarter of fiscal year 2027. It was found that revenue growth and profitability improvement continued, centered on the subscription business.
Workday released its earnings for the first quarter of fiscal year 2027, ended April 30, 2026, on the 4th.
Total sales were $2.542 billion, up 13.5% from the same period last year.
Subscription revenue was $2.354 billion, up 14.3% from the previous year.
It maintains a structure where subscription services account for a high proportion of total revenue.
Operating profit is $338 million, which is 13.3% of sales.
Operating profit on a non-GAAP basis was $809 million, an increase from the previous year.
Diluted earnings per share rose to $0.87 and non-GAAP earnings per share to $2.66, respectively, compared to the previous year.
In addition, subscription revenue order backlogs were recorded at $8.806 billion on a 12-month basis and $27.294 billion on a total basis, increasing by 15.5% and 10.9%, respectively.
Workday is a Software as a Service (SaaS) company that provides Human Capital Management (HCM) and financial management systems as an enterprise AI platform.
According to the company, the number of customers utilizing AI agents has more than doubled compared to the previous quarter, and over 4,000 companies are using the related features.
In addition, through the recruitment automation feature 'Recruitment Agent', approximately 14 million processes were processed during the first quarter. This is a 44% increase compared to the previous year.
In terms of products, it announced that it will provide new or expanded features, including the business AI platform 'Workday Sana', the AI agent management function 'Agent System of Record', and AI functions for IT service management.
Workday maintained its annual subscription revenue forecast for fiscal year 2027 at $9.925 billion to $9.95 billion.
The forecast for the non-GAAP operating profit margin was raised to 30.5%.
Regional expansion also continued.
Workday announced that it has entered the Vietnamese market and expanded its business scope within the ASEAN market.
The company explained that it plans to continue future growth by expanding AI-based services and improving operational efficiency.
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