Workday (WDAY) Posts 13% Revenue Growth in Q3

By Hao Liu • Friday, November 28 10:25 • Permanent Link

Workday, Inc. recently released its 10-Q report, providing a detailed insight into its financial performance and operations. The company, headquartered in Pleasanton, California, offers a suite of enterprise cloud applications for financial management, human capital management, planning, spend management, and analytics to a diverse customer base across various industries. Workday has achieved significant growth since its inception in 2005 and is now a Fortune 500 company with more than 11,000 customers worldwide.

The 10-Q report delves into the company's financial condition and results of operations, highlighting key metrics for the three and nine months ended October 31, 2025. Workday reported total revenues of $2.4 billion for the three months ended October 31, 2025, representing a 13% increase from the prior year period. Subscription services revenues accounted for approximately 92% of the total revenues, amounting to $2.2 billion, a 15% increase from the prior year period. Professional services revenues, however, decreased by 7% to $188 million for the same period.

The company's total subscription revenue backlog as of October 31, 2025, stood at $26.0 billion, with $8.2 billion expected to be recognized in revenues over the next 12 months. This marked a significant increase from the prior year, where the total subscription revenue backlog was $22.2 billion, with $7.0 billion expected to be recognized in revenues over the next 12 months.

Workday's gross revenue retention rate was approximately 97% as of October 31, 2025, indicating the company's ability to maintain its existing customer base and drive strong overall customer satisfaction.

In terms of costs and expenses, the report outlined the breakdown for the three and nine months ended October 31, 2025. Costs of subscription services amounted to $395 million for the three months ended October 31, 2025, compared to $329 million for the prior year period. Similarly, costs of professional services decreased to $196 million for the three months ended October 31, 2025, from $201 million for the prior year period.

Today the company's shares have moved -7.85% to a price of $215.34. Check out the company's full 10-Q submission here.

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