Workday, Inc. has recently released its 10-Q report, providing a detailed overview of its financial condition and results of operations. The company offers a suite of enterprise cloud applications including financial management, human capital management, planning, spend management, and analytics. Workday serves a diverse customer base across various industries, including professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality. The company has achieved significant growth since its inception in 2005 and currently boasts more than 11,000 customers worldwide.
In the recent financial results, Workday reported total revenues of $2.4 billion for the three months ended October 31, 2025, representing a 13% increase compared to the prior year period. Subscription services revenues accounted for approximately 92% of the total revenues, amounting to $2.2 billion for the same period, marking a 15% increase from the prior year. The company's gross revenue retention rate stood at approximately 97% as of October 31, 2025, reflecting its ability to maintain existing customer base and drive strong overall customer satisfaction.
As of October 31, 2025, Workday's total subscription revenue backlog was $26.0 billion, with $8.2 billion expected to be recognized in revenues over the next 12 months. This marked an increase from the prior year, primarily driven by expansion within the existing customer base, sales to new customers, and timing of renewals for existing customers.
The company's costs and expenses for the three months ended October 31, 2025, included $395 million for costs of subscription services, $196 million for costs of professional services, $666 million for product development, $677 million for sales and marketing, and $259 million for GAAP operating income, representing a 57% increase from the prior year period.
Workday remains confident in its long-term overall health, the strength of its product offerings, and its ability to continue executing its strategy despite recent macroeconomic events impacting the global economy. The company is focused on driving sustainable, long-term subscription revenue growth by adding new customers and expanding relationships with existing customers through increased adoption of its suite of solutions. As a result of these announcements, the company's shares have moved -7.85% on the market, and are now trading at a price of $215.34. For the full picture, make sure to review Workday's 10-Q report.
