Workday (WDAY) official guidance

We are maintaining our FY 2027 operating cash flow outlook of $3.45 billion, and we continue to expect FY 2027 capital expenditures of approximately $270 million, resulting in free cash flow of $3.18 billion, growth of 15%.

Our FY 2027 non-GAAP tax rate estimate remains 19%.

We are maintaining our FY 2027 operating cash flow outlook of $3.45 billion, and we continue to expect FY 2027 capital expenditures of approximately $270 million, resulting in free cash flow of $3.18 billion, growth of 15%.

We expect Q3 GAAP operating margin to be approximately 18 percentage points lower than our non-GAAP operating margin, and the full year FY 2027 GAAP operating margin to be approximately 18-19 points lower.

We expect Q3 GAAP operating margin to be approximately 18 percentage points lower than our non-GAAP operating margin, and the full year FY 2027 GAAP operating margin to be approximately 18-19 points lower.

Yeah. I would just add, we are leveraging AI internally, and we are doing more with flat headcount. That is the goal, and I think that is a really important direction for us to head.

We are maintaining our FY 2027 operating cash flow outlook of $3.45 billion, and we continue to expect FY 2027 capital expenditures of approximately $270 million, resulting in free cash flow of $3.18 billion, growth of 15%.

With that, we are increasing our FY 2027 non-GAAP operating margin guidance to 31%.

For the third quarter, we expect a non-GAAP operating margin of approximately 30%.

In addition, we expect our non-GAAP operating margin to expand by at least two percentage points next year.

We expect Q3 cRPO growth of 11%-12%. We lapped the Paradox acquisition in the third quarter, which added over a point to last year's Q3 cRPO growth.

For Q3, we expect professional services revenue of $175 million, and for the full year, we expect $710 million.

For Q3, we expect professional services revenue of $175 million, and for the full year, we expect $710 million.

We now expect FY 2027 subscription revenue of $9.94 billion-$9.95 billion, growth of 13%.

For the third quarter, we expect subscription revenue of approximately $2.515 billion, growth of 12%.

Our current target for FY 2028 subscription revenue growth is consistent with our expected second half FY 2027 growth rate of approximately 11%.

I'd love to see us continue the growth that we had in Q1, but keep headcount as close to flat for the year as possible because we are getting the benefits of using our own products and other AI tools.

For Q2, we expect a non-GAAP operating margin of approximately 30%.

We anticipate CRPO to increase between 13.5% and 14.5% in Q2.

For Q2, we expect professional services revenue of $180 million.