Workday Q3 Earnings Surpass Expectations with Strong Growth in Revenue and Margins | $WDAY (+1.08%)

EARNINGS HIGHLIGHTS

- $WDAY delivers Q3 adjusted EPS of $1.89, significantly above $1.75 estimate

- Revenue reaches $2.16B, exceeding $2.13B forecast with 16% YoY growth

- Backlog expands 20% YoY to $22.19B, surpassing $21.93B estimate

- Adjusted operating margin improves to 26.3% from 19.7% YoY

REVENUE BREAKDOWN

- Subscription revenue: $1.96B (16% YoY growth)

- Professional services: $201M (15% YoY growth, beating $174.2M estimate)

- Product development expense: $647M (4.6% YoY increase)

FORWARD GUIDANCE

- FY2025 subscription revenue projected at $7.703B (17% growth)

- FY2025 non-GAAP operating margin target: 25.5%

MANAGEMENT PERSPECTIVE

CEO Carl Eschenbach highlighted three key drivers of Q3 performance:

- Strong cross-industry customer trust

- Momentum in AI-driven innovations

- Robust partner ecosystem performance

PERFORMANCE CONTEXT

- Consistent revenue growth trajectory maintained

- Operating margin significantly exceeded expectations

- Strong backlog growth indicates healthy future revenue pipeline