Introduction
Workday (NASDAQ: WDAY) shares are trading at approximately $126.36 as of February 23, 2026, reflecting a modest intraday decline of around 0.08%. The company’s recent earnings and revenue performance continue to shape investor sentiment. This article delivers a clear, factual update on WDAY’s stock price, revenue growth, and earnings developments—no fluff, just the essentials.
Stock Price Snapshot
Workday’s current share price stands at $126.36, with intraday movement ranging between $126.05 and $136.24. The stock opened at $134.03, and its market capitalization is approximately $61.24 billion. The trailing price-to-earnings (P/E) ratio is 37.4, and earnings per share (EPS) is $6.15. citeturn0finance0
Recent Earnings and Revenue Highlights
Q3 Fiscal Year 2026 Results
Workday posted strong third-quarter results, with total revenue reaching $2.432 billion, up 13% year-over-year. Subscription revenue—the company’s core business—grew 15% to $2.244 billion. Adjusted EPS came in at $2.32, beating expectations of around $2.17. Net profit rose to $252 million, or $0.94 per share, compared to $193 million ($0.72) a year earlier.
Operating income improved to $259 million, representing 10.7% of revenue, up from $165 million in the prior year. The 12-month subscription revenue backlog climbed 17.6% to $8.21 billion. Operating cash flow surged 45% to $588 million.
Q2 Fiscal Year 2026 Results
In the second quarter, Workday delivered $2.35 billion in revenue, a 12.6% increase year-over-year. Subscription revenue accounted for $2.169 billion of that total. Adjusted EPS was $2.21, beating the consensus estimate of $2.12. The 12-month subscription backlog rose 16.4% to $7.91 billion, while the total subscription backlog reached $25.37 billion. The company repurchased 1.2 million shares for $299 million.
Analyst Day and Strategic Moves
At a recent analyst day, Workday announced that activist investor Elliott Management acquired a $2 billion stake, becoming one of its largest shareholders. The company lowered its subscription revenue growth target for fiscal 2027 from 15% to 13%, but raised its outlook for operating margins and free cash flow. Workday also expanded its partnership with Microsoft and increased its share buyback program to $5 billion. Additionally, it announced a $1.1 billion acquisition of Sana Labs, enhancing its AI-driven capabilities.
Revenue Growth Trends
Workday’s revenue trajectory shows consistent expansion. For the fiscal year ending December 31, 2025, annual revenue reached approximately $8.42 billion, reflecting a ~16.9% year-over-year increase. The trailing twelve-month revenue stands at $8.94 billion, with a growth rate of 14.2%.
Historical data confirms this steady climb: revenue rose from $6.20 billion in 2023 to $7.20 billion in 2024, and then to $8.42 billion in 2025.
What It Means Now
Workday continues to deliver solid revenue growth and earnings beats, particularly driven by its subscription business and AI product momentum. The Q3 results reinforce its ability to convert innovation into financial performance. The expanded backlog and strong cash flow provide visibility into near-term stability.
However, the lowered subscription growth guidance for fiscal 2027 signals a shift toward margin optimization over aggressive expansion. The involvement of Elliott Management and the enlarged buyback program suggest a strategic focus on shareholder returns and operational efficiency.
What’s Next for Investors
Looking ahead, the market will be watching:
- Q4 Fiscal 2026 guidance: Management forecasts subscription revenue of $2.355 billion, implying 15–16% growth, and expects adjusted operating margins of 28.5–29%.
- Fiscal 2026 full-year outlook: Subscription revenue is projected at $8.828–8.83 billion, with margins in the high 20s.
- Integration of AI acquisitions: The impact of Paradox and Sana Labs on growth and efficiency will be closely monitored.
- Macro and sector pressures: Any signs of slowing enterprise spending or elongated sales cycles could influence future performance.
Conclusion
Workday’s stock price of $126.36 reflects a company in transition—still growing, but increasingly focused on profitability and shareholder value. Q3 results show healthy revenue and earnings momentum, while strategic moves signal a more balanced approach ahead. Investors will be watching upcoming guidance, AI integration, and margin trends to assess whether Workday can sustain its growth while delivering stronger returns.
