The cloud-based enterprise software firm reports strong subscription revenue growth and expanding margins driven by AI adoption.
Workday reported Q1 2026 revenue of $2.5 billion, up 13% year-over-year, matching its subscription revenue growth. The company’s 12-month subscription backlog reached $8.8 billion, enhancing revenue visibility.
Subscription revenue climbed to $2.4 billion, while non-GAAP operating margins expanded 31%, supported by automation and cross-selling of AI-driven financial management tools. Free cash flow for the quarter totaled $616 million.
The results reflect sustained demand for cloud-native enterprise solutions, with early backing from investors including Jeff Bezos underscoring long-term confidence in SaaS adoption.