Workday Inc.: First Take: In-Line cRPO, Slightly Better Revenue, Much Better Operating Profit and OCF Against Low Expectations

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Workday Inc.: First Take: In-Line cRPO, Slightly Better Revenue, Much Better Operating Profit and OCF Against Low Expectations

Equity Research

U.S. Software

21 May 2026

Workday Inc.

First Take: In-Line cRPO, Slightly

Better Revenue, Much Better First Look

WDAY OVERWEIGHTOperating Profit and OCF Against

U.S. Software POSITIVE

Price Target USD 200.00Low Expectations

Price (20-May-26) USD 126.61

We see a positive reaction to WDAY’s Q1 results. The quarter Potential Upside/Downside +58.0%

and guidance were solid and hence, should get credit, but we Source: Bloomberg, Barclays Research

also think expectations were very low, which should help U.S. Software

shares. Raimo Lenschow, CFA

+1 212 526 2712

raimo.lenschow@barclays.com

Workday delivered solid Q1 FY27 results (see difference table below). Unlike Intuit yesterday, BCI, US

there were no real expectations for a good outcome, especially after not so great numbers from

Sheldon McMeansthe on-cycle names like NOW. In this context, Workday delivered a solid quarter with 15.5% YoY

+1 212 526 1544

cRPO growth (stable vs. Q4’s 15.8%) and no major surprises in guidance. Operating margin sheldon.mcmeans@barclays.com

guidance was increased and shows that management wants to continue to work on growth and BCI, US

the AI transformation of Workday but still deliver steady profitability improvements. We are not

Becky Sunsure these results will be a thesis changer but provide comforting data points nonetheless.

+1 212 526 0416

yuyao.sun@barclays.comTurning to guidance, Q2 subscription revenue is expected to be $2.455bn, or growth of ~13% y/y

BCI, US

(versus consensus of $2.451bn), with Q2 Non-GAAP operating margin of 30.0% (vs. consensus

29.9%). WDAY also updated its FY27 guidance and continues to expect FY27 sub revenue of