Following the release of its fiscal year results report, Workday, Inc.’s stock price (NASDAQ: WDAY) experienced a significant increase. WDAY shares have increased by 10.64% to $282.38 as of the most recent premarket check.
Outstanding Growth in Revenue
Workday announced an increase of 15% in total revenues of $2.211 billion for the fourth quarter of the fiscal year that ended on January 31, 2025. Revenues from subscriptions also increased significantly, at 15.9% to $2.040 billion. Subscription sales increased by 16.9% to $7.718 billion, while overall annual revenues increased by 16.4% to $8.446 billion.
Workday also said that its 12-month subscription revenue backlog, which currently stands at $7.63 billion, has increased by 15.2%. The total backlog of subscription income increased by 19.7% year over year to $25.06 billion. As part of its continuing share repurchase program, the company also paid $700 million to buy back around 2.9 million shares.
Future Prospects and Strategic Investments
Workday’s impressive performance may be ascribed to its sustained success in important growth sectors, including its whole product line, financial services, and the rising demand for AI-powered goods. For fiscal 2026, the business projects $8.800 billion in subscription sales with a 14% increase, and anticipates a non-GAAP operating margin of about 28%.
Long-term growth is another priority for the organization, which is why it is investing in new technology and increasing operational efficiency. WDAY is notable for introducing the Workday Agent System of Record, which makes it easy for businesses to maintain AI agents.
Recognition and Growth
With over 11,000 firms utilizing its platform, including around 30% of the Forbes worldwide 2000, Workday is still growing its worldwide footprint. In addition to growing its current clientele with Aon and Toyota, the business welcomed new clients including First-Citizens Bank & Trust and Vermont State College System.
For the eighth year in a row, WDAY has been recognized as the Best in KLAS 2025 for enterprise resource planning (ERP) for big enterprises by KLAS Research, which recognizes its ongoing performance.