Workday Reports Double-Digit Revenue Growth as AI Strategy Gains Momentum

2026-02-24 companies

Pleasanton, Wednesday, 25 February 2026.
Workday closed fiscal 2026 with $9.55 billion in revenue, fueled by a strategic pivot to artificial intelligence. Processing 1.7 billion AI actions, the company is aggressively expanding its “Agentic AI” roadmap under returning CEO Aneel Bhusri to capture new market opportunities.

Fiscal 2026 Financial Performance

Workday’s fiscal year 2026, which concluded on January 31, 2026, demonstrated robust top-line expansion, with total revenues reaching $9.552 billion, a 13.1% increase over fiscal 2025 [1]. Subscription revenues, a critical metric for the company’s recurring business model, climbed 14.5% to $8.833 billion [1]. Profitability metrics also showed significant improvement; non-GAAP operating income for the full year rose to $2.824 billion, representing 29.6% of revenues, compared to 25.9% in the prior year [1]. Diluted net income per share for the year was $2.59 on a GAAP basis, while non-GAAP diluted net income per share reached $9.23 [1][2].

Accelerating the Agentic AI Roadmap

A central theme of Workday’s operational strategy has been the rapid integration of artificial intelligence across its platform. In fiscal year 2026, the company delivered 1.7 billion AI actions, signaling widespread adoption of its automated capabilities [4]. The financial impact of this pivot is becoming tangible; the Annual Recurring Revenue (ARR) from AI solutions has surpassed $400 million [4]. Furthermore, in the fourth quarter alone, Workday generated over $100 million in new Annual Contract Value (ACV) from emerging AI products, a figure that grew by more than 100% year-over-year [4].

Leadership Returns and Future Outlook

These financial results coincide with a significant leadership transition. On February 9, 2026, co-founder Aneel Bhusri returned to the role of Chief Executive Officer [2]. Bhusri emphasized that while the company originally transformed HR and finance through the cloud, the current opportunity lies in reimagining these sectors through AI [2]. Looking ahead to fiscal 2027, Workday projects subscription revenues between $9.925 billion and $9.950 billion, representing a growth rate of 12% to 13% [1]. The company also anticipates maintaining a non-GAAP operating margin of approximately 30.0% for the coming fiscal year [1].

Sources

Earnings Workday