Workday's first quarter fiscal 2027 revenue and EPS beat estimates, driven by 14.3% subscription revenue growth.

Workday reported first quarter fiscal 2027 total revenues of $2.54 billion, up 13.5% year-over-year, and non-GAAP diluted EPS of $2.66, beating consensus estimates of $2.52 billion and $2.52, respectively.

Key Highlights

• Subscription revenue grew 14.3% year-over-year to $2.354 billion, exceeding the 13% growth analysts were modeling.
• The company's 12-month subscription revenue backlog, a key indicator of future growth, increased 15.5% from the prior year to $8.806 billion.
• Workday raised its full-year fiscal 2027 non-GAAP operating margin guidance to 30.5%, while reiterating its subscription revenue outlook of $9.925 billion to $9.950 billion.