How does Workday (WDAY) make money?

Workday (WDAY) generates revenue primarily from Subscription Services, which accounted for 92.6% of total revenue in TTM through Q2 2026. The company reported $9.85B in revenue and converted 8.6% of it into net profit, equivalent to roughly $847M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Workday (WDAY)?

Workday (WDAY) reported a gross profit margin of 75.8% in TTM through Q2 2026, equivalent to $7.47B in gross profit on $9.85B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Workday (WDAY)?

Workday (WDAY) reported an operating profit margin of 11.7% in TTM through Q2 2026, equivalent to $1.15B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Workday (WDAY)?

Workday (WDAY) reported a net profit margin of 8.6% in TTM through Q2 2026, equivalent to $847M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Workday (WDAY) profitable?

Yes. Workday (WDAY) reported $847M in net income for TTM through Q2 2026, with a net profit margin of 8.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Workday (WDAY) invest in research and development?

Workday (WDAY) invested $2.72B in research and development during TTM through Q2 2026, roughly 27.6% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Workday (WDAY) spend on capital expenditures?

Workday (WDAY) spent $206M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 2.1% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Workday (WDAY) generate?

Workday (WDAY) generated $2.97B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 30.2%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Workday (WDAY)?

Workday (WDAY) had an effective tax rate of 32.8% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Workday (WDAY)?

Workday (WDAY) reports revenue across 2 reportable product segments, led by Subscription Services at 92.6% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Workday (WDAY) generate most of its revenue?

UNITED STATES is the largest geographic market for Workday (WDAY), accounting for 75% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Workday Makes Money: 2026 Visual Revenue Map

Workday (WDAY) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending April 30, 2026 (reported May 22, 2026).

Workday (WDAY) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Workday (WDAY), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Subscription Services	$9.13B	92.6%
Professional Services	$726M	7.4%
Total	$9.85B	100%

Subscription Services$9.13B
Professional Services$726M
Total$9.85B

Workday (WDAY) Revenue by Geography — TTM through Q2 2027

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Workday (WDAY), TTM through Q2 2027
Region	Revenue (USD)	% of total
UNITED STATES	$7.39B	75%
Non-US	$2.47B	25%
Total	$9.85B	100%

UNITED STATES
Non-US
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Workday (WDAY) reports revenue across 2 reportable product segments; the largest segment was Subscription Services at 92.6%, followed by Professional Services (7.4%). Geographically, UNITED STATES accounted for 75% of revenue, followed by Non-US (25%).

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