In Q3 2025, Workday Inc (NASDAQ: WDAY) reported continuing solid growth with total revenue of $2.16 billion, reflecting a year-over-year increase of 16%. The company's subscription revenue drove this growth with a notable rise of 16% to $1.959 billion. Non-GAAP operating income was recorded at $569 million, representing an operating margin of 26.3%. CEO Carl Eschenbach emphasized the significance of ongoing AI innovations and strong customer relationships, particularly in the government and higher education sectors, which constituted a majority of the company's substantial wins for the quarter.
Despite facing external economic pressures and evolving market conditions, Workday's focus on expanding its AI capabilities and ecosystems contributed to a robust financial performance. However, management highlighted challenges regarding delayed revenue recognition tied to strategic contracts that may affect Q4 outcomes. The long-term strategy aims to sustain mid-teen growth rates while expanding operating margins through operational efficiencies and enhanced product offerings.