The software firm raised its fiscal 2027 subscription revenue forecast and non-GAAP operating margin target after strong Q1 growth.
Workday raised its fiscal 2027 subscription revenue outlook to a range of $9.925 billion to $9.950 billion, up from prior guidance. The company also increased its non-GAAP operating margin target to 30.5%, citing strong first-quarter performance.
The quarter marked the best first-quarter new annual contract value (ACV) growth in five years, driven by demand for its core business offerings. Workday’s previous revenue guidance for FY27 was not disclosed in the latest update, but the upward revision reflects confidence in sustained momentum.
Management attributed the results to robust enterprise adoption and operational efficiency gains, though no immediate market reaction was detailed in the source.