Workday Reports Strong Q4 2025 Results with 16% Revenue Growth

Workday exhibits solid performance in Q4 2025, showcasing a 16% growth in subscription revenue. This strong quarter highlights the company's growing presence and demand across various industries.

Date: 26-02-2025

AI Rating: 7

Performance Overview

Workday's Q4 performance shows a robust subscription revenue growth rate of 16%, amounting to $2.04 billion. This is a positive indication for the company's financial health, likely enhancing investor confidence and potentially increasing stock prices as a result.

Revenue Growth

The report indicates total revenue growth of 15% for Q4 and 16% for the full year, totaling $8.45 billion. This upward trend bolsters the outlook for the company and signals strong operational execution.

Operating Margin and Income

The non-GAAP operating margin stood at 26.4% for Q4. This showcases efficient management of costs while enhancing profitability, which can have a positive impact on stock sentiment and overall valuation.

Future Outlook

Workday's guidance for FY '26 anticipates a continuation of growth, expecting subscription revenue of approximately $8.8 billion, a 14% increase. This forward-looking statement is crucial as it sets positive expectations among investors, which could positively influence stock prices.

Conclusion

Overall, the strong Q4 results, significant revenue growth, and positive forward guidance represent strong fundamentals for Workday, suggesting a favorable environment for stock price appreciation in the near term.

Stocks: WDAY