Workday, Inc. WDAY
NasdaqApplication softwareFinancials to Jul 31, 2026 · Updated Oct 7, 2026
Moat ranks
Balance sheet
| $B | Jan 31 | Jul 31 |
|---|---|---|
| Cash | 1.5 | 0.7 |
| Securities | 3.9 | 2.7 |
| Debt | 3.0 | 3.0 |
| Net cash | 2.5 | 0.4 |
| Equity | 7.8 | 6.5 |
- Debt / EBITDA
- 2.06×
- Debt / equity
- 0.46×
- Leases (7/31/26)
- $783M
- Diluted shares
- 246M
- Book value / share
- $26.23
- Price / book
- 7.0×
- Net cash / share
- $1.68
- Market cap
- $45.0B
- Enterprise value
- $44.5B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 12.8% | +0.2 pts | |
| Operating margin | 11.8% | +1.3 pts | |
| FCF margin | 17.4% | -7.7 pts | |
| Capex / revenue | 2.2% | +1.0 pts | |
| Gross revenue retention | ~97.0% | 0.0 pts | |
| Total subscription backlog | $27.4B | +8% | |
| 12-month subscription backlog | $9.0B | +14% | |
| Customers using organic AI agents | ≥5,500 | – | – |
| Quarterly subscription revenue | $2.5B | +14% |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About WDAY
Workday sells cloud software for HR, finance, planning, spending and AI workflows. Subscriptions generated $8.833 billion, or 92.5% of FY2026 revenue; services generated $719 million.
- Training Org Change Costs
Implementations touch complex HR/finance processes and integrations across large organizations, creating high change-management and deployment costs that slow vendor switching once live.
- Data Workflow Lockin
Workday becomes a system-of-record for workforce, financial and agentic workflows; multi-year, generally noncancelable subscriptions and high retention indicate strong embedded workflow/data lock-in.
- Interoperability Hub
Certified integrations, Built on Workday apps and agent interoperability make the core system of record more useful, although partners multi-home across competing enterprise platforms.
- Oct 5, 2026
Sarah Kennedy Ellis became chief marketing officer, adding leadership for the enterprise AI product strategy. Source: https://newsroom.workday.com/2026-09-10-Workday-Names-Sarah-Kennedy-Ellis-Chief-Marketing-Officer
- Oct 1, 2026
Workday replaced its $1 billion credit facility with a $1.5 billion revolver maturing in 2031. It was undrawn at signing, adding liquidity capacity rather than reported debt. Source: https://www.sec.gov/Archives/edgar/data/1327811/000110465926112898/tm2626731d2_8k.htm
- Sep 29, 2026
Workday announced a 2.5% workforce reduction and selected office exits, with $65 to 80 million of expected charges. It kept subscription and adjusted-margin guidance but lowered expected GAAP margins. Source: https://www.sec.gov/Archives/edgar/data/1327811/000132781126000048/wday-20260929.htm
- Sep 24, 2026
Workday launched Total Benefits, joining employer benefit management with employee guidance and extending the existing HR workflow. Source: https://newsroom.workday.com/2026-09-24-Workday-Launches-Total-Benefits,-Bringing-Health,-Wealth,-and-Wellbeing-Support-Together-in-One-Place
- Aug 27, 2026
Workday raised FY2027 subscription revenue guidance to $9.940 to 9.950 billion and non-GAAP operating margin to 31%; paid AI expansion remains a key test. Source: https://investor.workday.com/news-and-events/press-releases/news-details/2026/Workday-Announces-Fiscal-2027-Second-Quarter-Financial-Results/default.aspx
Ownership
Go deeper on WDAY
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On this page
Financial record
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | TTM | Trend | Change 2017–26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 7.94 | 10.31 | 13.02 | 15.97 | 18.22 | 20.23 | 24.39 | 27.36 | 31.37 | 35.63 | 41.23 | +18.1%/yr | |
| Cash flow | 1.77 | 2.24 | 2.80 | 3.81 | 5.35 | 6.50 | 6.50 | 8.10 | 9.14 | 10.96 | 12.51 | +22.5%/yr | |
| Earnings | -1.94 | -1.55 | -1.93 | -2.12 | -1.19 | 0.11 | -1.44 | 5.21 | 1.95 | 2.58 | 5.08 | – | |
| Free cash flow | 0.62 | 0.91 | 0.98 | 2.29 | 4.24 | 4.76 | 5.07 | 7.19 | 8.13 | 10.36 | 11.55 | +36.7%/yr | |
| Capex | 1.15 | 1.33 | 1.82 | 1.51 | 1.11 | 1.74 | 1.43 | 0.91 | 1.01 | 0.60 | 0.96 | -6.9%/yr | |
| Dividends | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | – | |
| Book value | 6.44 | 7.61 | 9.03 | 10.95 | 13.83 | 17.85 | 21.92 | 30.47 | 33.56 | 29.11 | 26.23 | +18.2%/yr | |
| Diluted shares (M) | 198 | 208 | 217 | 227 | 237 | 254 | 255 | 265 | 269 | 268 | 246 | +3.4%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 1.6 | 2.1 | 2.8 | 3.6 | 4.3 | 5.1 | 6.2 | 7.3 | 8.4 | 9.6 | 10.2 | +22.2%/yr | |
| Operating income | -0.4 | -0.3 | -0.5 | -0.5 | -0.2 | -0.1 | -0.2 | 0.2 | 0.4 | 0.7 | 1.1 | – | |
| Net income | -0.4 | -0.3 | -0.4 | -0.5 | -0.3 | 0.0 | -0.4 | 1.4 | 0.5 | 0.7 | 1.3 | – | |
| Free cash flow | 0.1 | 0.2 | 0.2 | 0.5 | 1.0 | 1.2 | 1.3 | 1.9 | 2.2 | 2.8 | 2.8 | +41.4%/yr | |
| Buybacks | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.4 | 0.7 | 2.9 | 5.2 | – | |
| Dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | – | |
| Net cash | 1.5 | 1.8 | 0.6 | 0.7 | 1.7 | 1.8 | 3.1 | 4.8 | 5.0 | 2.5 | 0.4 | +$1.0B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 69.3 | 70.6 | 70.4 | 70.6 | 72.3 | 72.2 | 72.5 | 75.6 | 75.5 | 75.7 | 75.8 | +6.4 pts | |
| Operating margin | -22.4 | -14.1 | -16.4 | -13.8 | -5.8 | -2.3 | -3.6 | 2.5 | 4.9 | 7.5 | 10.7 | +30.0 pts | |
| Net margin | -24.4 | -15.0 | -14.8 | -13.3 | -6.5 | 0.6 | -5.9 | 19.0 | 6.2 | 7.3 | 12.3 | +31.7 pts | |
| FCF margin | 7.8 | 8.8 | 7.5 | 14.4 | 23.3 | 23.5 | 20.8 | 26.3 | 25.9 | 29.1 | 28.0 | +21.3 pts | |
| ROIC | – | – | -25.1 | -20.8 | -12.1 | -3.2 | -6.8 | 4.2 | 7.8 | 10.1 | 13.4 | – | |
| Return on equity | -30.1 | -20.3 | -21.4 | -19.3 | -8.6 | 0.6 | -6.6 | 17.1 | 5.8 | 8.9 | 19.4 | +39.0 pts | |
| R&D % of revenue | 43.2 | 42.5 | 42.9 | 42.7 | 39.9 | 36.6 | 36.1 | 33.9 | 31.1 | 28.0 | 27.7 | -15.2 pts | |
| Stock pay % of revenue | 23.6 | 22.3 | 23.1 | 23.7 | 23.3 | 21.4 | 20.8 | 19.5 | 18.0 | 17.0 | 16.2 | -6.6 pts | |
| Capex % of revenue | 14.5 | 12.9 | 14.0 | 9.5 | 6.1 | 8.6 | 5.9 | 3.3 | 3.2 | 1.7 | 2.3 | -12.8 pts | |
Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- moderate
- Subscription services (Workday cloud applications + platform)92.5%3 claims
- Professional services (deployment, optimization, training)7.5%No moat
Moat claims
- Applies to
- Subscription services (Workday cloud applications + platform)
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
Implementations touch complex HR/finance processes and integrations across large organizations, creating high change-management and deployment costs that slow vendor switching once live.
July 2026 gross revenue retention remained approximately 97%; complex HR and finance deployments continue to protect the installed base, but no comparable implementation-cost series proves stronger change costs.
- Gross revenue retention~97.0%0.0 pts
- Annual subscription revenue$8.8B+14%
- Quarterly subscription revenue$2.5B+14%
- Improved migration/implementation tooling reduces change costs
- Standardized APIs and middleware reduce integration friction
- Enterprises adopt modular best-of-breed point solutions instead of suite replacements
- FilingWorkday FY2026 Form 10-K - Implementation complexityMar 6, 2026
- FilingWorkday FY2026 Form 10-K - Need for skilled professionalsMar 6, 2026
- Applies to
- Subscription services (Workday cloud applications + platform)
- Confidence
- Durability
- durable
- Trajectory
- narrowingas of Oct 7, 2026
Workday becomes a system-of-record for workforce, financial and agentic workflows; multi-year, generally noncancelable subscriptions and high retention indicate strong embedded workflow/data lock-in.
Gross revenue retention fell from approximately 98% in January 2025 to 97% from July 2025 through July 2026; total backlog growth slowed to 8%, so customer dependence remains strong but is not strengthening.
- Gross revenue retention~97.0%0.0 pts
- Total subscription backlog$27.4B+8%
- 12-month subscription backlog$9.0B+14%
- Annual subscription revenue$8.8B+14%
- Customers using organic AI agents≥5,500
- Quarterly subscription revenue$2.5B+14%
- Data portability requirements or buyer demands reduce lock-in
- Competitors bundle broader suites with aggressive pricing to displace incumbents
- Security incidents or outages trigger re-platforming decisions
- FilingWorkday FY2026 Form 10-K - Multi-year, generally noncancelable contractsMar 6, 2026
- FilingWorkday FY2026 Form 10-K - Gross revenue retentionMar 6, 2026
- FilingWorkday Q1 FY2027 Form 10-Q - Subscription backlogMay 22, 2026
- NewsWorkday Q2 FY2027 resultsAug 27, 2026
- Applies to
- Subscription services (Workday cloud applications + platform)
- Confidence
- Durability
- medium
- Trajectory
- wideningas of Oct 7, 2026
Certified integrations, Built on Workday apps and agent interoperability make the core system of record more useful, although partners multi-home across competing enterprise platforms.
More than 5,500 customers used organic AI agents in July 2026, alongside new developer and agent-verification tools; the broader integration surface strengthens utility, while paid adoption and partner exclusivity remain unproved.
- Customers using organic AI agents≥5,500
- Partners build for multiple ecosystems; complements are not exclusive
- Security/compliance constraints limit third-party app adoption
- Platform changes that break integrations reduce ecosystem trust
- FilingWorkday FY2026 Form 10-K - Platform extensibility and third-party integrationMar 6, 2026
- FilingWorkday FY2026 Form 10-K - Partner ecosystem and Workday MarketplaceMar 6, 2026
- NewsWorkday Launches New Tools for Developers to Build, Connect, and Verify AI Agents For HR, Finance, and ITJun 2, 2026
- NewsWorkday and Google Cloud expand strategic agent partnershipMay 28, 2026
Profile change log
- Oct 7, 2026 · business change
Sarah Kennedy Ellis became chief marketing officer, adding leadership for the enterprise AI product strategy. Source: https://newsroom.workday.com/2026-09-10-Workday-Names-Sarah-Kennedy-Ellis-Chief-Marketing-Officer
- Oct 7, 2026 · business change
Workday replaced its $1 billion credit facility with a $1.5 billion revolver maturing in 2031. It was undrawn at signing, adding liquidity capacity rather than reported debt. Source: https://www.sec.gov/Archives/edgar/data/1327811/000110465926112898/tm2626731d2_8k.htm
- Oct 7, 2026 · business change
Workday announced a 2.5% workforce reduction and selected office exits, with $65 to 80 million of expected charges. It kept subscription and adjusted-margin guidance but lowered expected GAAP margins. Source: https://www.sec.gov/Archives/edgar/data/1327811/000132781126000048/wday-20260929.htm
- Oct 7, 2026 · business change
Workday launched Total Benefits, joining employer benefit management with employee guidance and extending the existing HR workflow. Source: https://newsroom.workday.com/2026-09-24-Workday-Launches-Total-Benefits,-Bringing-Health,-Wealth,-and-Wellbeing-Support-Together-in-One-Place
- Oct 7, 2026 · business change
Workday raised FY2027 subscription revenue guidance to $9.940 to 9.950 billion and non-GAAP operating margin to 31%; paid AI expansion remains a key test. Source: https://investor.workday.com/news-and-events/press-releases/news-details/2026/Workday-Announces-Fiscal-2027-Second-Quarter-Financial-Results/default.aspx
- Oct 7, 2026 · business change
Co-founder Aneel Bhusri returned as CEO, replacing Carl Eschenbach, to lead the AI strategy. Source: https://www.sec.gov/Archives/edgar/data/1327811/000132781126000014/wday-20260131.htm
- Oct 7, 2026 · analyst revision
Set professional services to verified no moat using FY2026 evidence that partners provide most deployments and services costs exceed revenue. This competitive revenue category is now included at zero in the weighted moat score.
- Oct 7, 2026 · analyst revision
Completed trajectories, management and investment debate; changed the mix from Q2 FY2027 to the reported FY2026 revenue categories. Retained three subscription claims and judged workflow dependence to be narrowing slightly as retention and backlog momentum eased.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Global enterprise application software
Cloud and on-premise business applications including ERP, finance, HCM, CRM, supply chain, procurement, analytics, content management and collaboration, using Apps Run The World's enterprise-applications taxonomy. Excludes implementation consulting, core cloud infrastructure and consumer software; the market is broader than SAP's ERP-centered portfolio or IDC's narrower CRM application market.
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| WDAY | 78 | 75.8% | 10.7% | |
| Industry median | 31 | 78 | 75.3% | 19.9% |
| Sector median | 77 | 75 | 64.9% | 23.6% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- ERP modernization and migration of established customers create cloud demand; systems of record provide a base for adjacent applications.
- Integrated business data and workflow automation support demand for AI, but paid adoption must justify additional spend. Including AI across existing commercial tiers can broaden adoption, while extra revenue still depends on usage, editions and proven customer outcomes.
- Compliance, data residency and secure deployment requirements favor vendors with tested enterprise controls and implementation partners.
- Demand follows business investment and employment; multi-year subscriptions cushion slowdowns, while new deals and migration projects can be delayed.
- Currency changes affect international revenue translated into dollars or euros; implementation wages, cloud hosting and AI inference costs affect supplier margins. ServiceNow’s Q3 2026 cRPO outlook includes a $35 million currency headwind, while its current cost disclosures show rising cloud and infrastructure spending.
- Major migrations reopen vendor choice; Oracle, Microsoft, Workday and specialist applications can displace an incumbent.
- Interoperability, open data formats, antitrust remedies and data-access litigation reduce some forms of contractual dependence and support pricing power.
- High interest rates and weak business confidence can delay transformation budgets; debt-funded acquisitions and repurchases also increase supplier financing costs.
- AI may improve existing applications or let new entrants bypass them; product announcements do not prove adoption or pricing power.
- Cyber incidents, failed implementations and cloud outages can weaken trust in mission-critical systems. Unresolved government-contract compliance investigations, such as ServiceNow’s July 2026 disclosure, can also affect public-sector trust and procurement access. Healthcare deployments face patient-safety and government oversight requirements; expanding contract ceilings do not resolve delivery risk.
Bulls & bears
Can Workday turn its embedded HR and finance customer base into sustained paid AI and application expansion while keeping retention high and controlling the cost of repeated reorganizations?
Arguments
What to watch
- 1Gross revenue retention and new versus existing customer subscription revenue
- 212-month and total subscription backlog, with acquisition and contract-duration effects
- 3Paid AI adoption, GAAP operating income, stock compensation and restructuring
- 4Operating cash flow, repurchases and unrestricted cash and securities
- 5AI hiring litigation and customer adoption after regulatory decisions
Next check: October 13, 2026 financial analyst day, then Q3 FY2027 results for the quarter ending October 31; check September reorganization charges and updated AI economics.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 6, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 78/100 by <a href="https://www.findmymoat.com/stocks/XNAS:WDAY">Find My Moat</a> (as of September 2026)Request update
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