Workday, Inc.
For the period ended Jul 31, 2026. Filed Aug 27, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2026 · Filed Aug 27, 2026
WDAY$192.90-3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-04-30; filed 2026-05-22.
0001327811-26-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-31; filed 2026-08-27.
0001327811-26-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 132 current paragraphs.
84 unchanged; 36 reworded; 11 added; 2 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Total costs and expenses were $2.3 billion for the three months ended July 31, 2026, compared to $2.1 billion for the prior year period, an increase of $236 million, or 11%. The increase in total costs and expenses included increases of $126 million in employee-related expenses, $43 million in facilities and IT-related expenses, $32 million in third-party hosted infrastructure expenses, $14 million in amortization of acquisition-related intangible assets, and $11 million in amortization of deferred sales commissions.
Current report
Costs of subscription services were $848 million for the six months ended July 31, 2026, compared to $720 million for the prior year period, an increase of $128 million, or 18%. The increase in costs of subscription services included increases of $80 million in third-party hosted infrastructure expenses, $20 million in amortization of acquisition-related intangible assets, $17 million in employee-related expenses, and $11 million in facilities and IT-related expenses.
Current report
Costs of professional services were $408 million for the six months ended July 31, 2026, compared to $399 million for the prior year period, an increase of $9 million, or 2%. Costs of professional services remained relatively flat.
Current report
Product development expenses were $1.5 billion for the six months ended July 31, 2026, compared to $1.3 billion for the prior year period, an increase of $130 million, or 10%. The increase in product development expenses included increases of $102 million in employee-related expenses and $38 million in facilities and IT-related expenses.
Current report
Sales and marketing expenses were $1.4 billion for the six months ended July 31, 2026, compared to $1.3 billion for the prior year period, an increase of $122 million, or 10%. The increase in sales and marketing expenses included increases of $51 million in employee-related expenses, $22 million in amortization of deferred sales commissions, $17 million in facilities and IT-related expenses, and $9 million related to marketing programs.
Current report
General and administrative expenses were $447 million for the six months ended July 31, 2026, compared to $429 million for the prior year period, an increase of $19 million, or 4%. The increase in general and administrative expenses included increases of $11 million in facilities and IT-related expenses and $7 million in employee-related expenses.
Current report
Share-based compensation expense increased by $71 million for the three months ended July 31, 2026, compared to the prior year period, primarily due to additional grants to new and existing employees.
Current report
GAAP operating income was $313 million, or 11.8% of revenues, for the three months ended July 31, 2026, compared to the prior year GAAP operating income of $248 million, or 10.6% of revenues. The increase is primarily due to our revenue growth outpacing headcount growth and moderation of operating expenses.
Current report
Non-GAAP operating income was $1.6 billion, or 31.5% of revenues, for the six months ended July 31, 2026, compared to the prior year non-GAAP operating income of $1.4 billion, or 29.6% of revenues. The increase is primarily due to our revenue growth outpacing headcount growth and moderation of operating expenses.
Current report
Provision For (Benefit From) Income Taxes
Current report
The income tax benefit for the three and six months ended July 31, 2026, was primarily attributable to an intra-entity transfer of certain intellectual property rights as part of an internal legal entity restructuring. In connection with the transaction, we recognized $374 million of deferred tax assets related to deductible temporary differences associated with certain tax attributes transferred at carryover basis. This benefit was partially offset by income tax expense primarily attributable to earnings in the U.S. and profitable foreign jurisdictions.
Removed paragraphs (2)
Previous report
Provision For Income Taxes
Previous report
As of April 30, 2026, we were authorized to repurchase a remaining$1.3 billionof our outstanding shares of Class A common stock under our share repurchase programs.
Reworded paragraphs (36)
Previous wording
We have achieved significant growth since our inception in 2005, when we pioneered HCM in the cloud. As a result of our innovation and commitment to customer success, today we are a Fortune 500 company with more than 11,500 customers around the world. As we continue to grow, we are focused on driving sustainable, long-term subscription revenue growth by adding new customers and expanding our relationships with existing customers through increased adoption of our suite of solutions. Central to this effort is investing in strategic growth areas including developing innovative AI solutions, expanding internationally, growing our partner ecosystem, deepening our presence in industry verticals and the emerging and medium enterprise market, and exploring strategic acquisitions to complement our organic innovation. Our investments across these targeted growth areas may require additional costs, but we remain committed to optimizing resource allocation and realizing a return on our investments. Over time, we believe these investments will support revenue growth and a more scalable business.
Current wording
We have achieved significant growth since our inception in 2005, when we pioneered HCM in the cloud. As a result of our innovation and commitment to customer success, today we are a Fortune 500 company with more than 11,500 customers around the world. As we continue to grow, we are focused on driving sustainable, long-term subscription revenue growth by adding new customers and expanding our relationships with existing customers through increased adoption of our suite of solutions. Central to this effort is investing in strategic growth areas including developing innovative AI solutions, expanding internationally, growing our partner ecosystem, deepening our presence in industry verticals and the medium enterprise market, and exploring strategic acquisitions to complement our organic innovation. Our investments across these targeted growth areas may require additional costs, but we remain committed to optimizing resource allocation and realizing a return on our investments. Over time, we believe these investments will support revenue growth and a more scalable business.
Previous wording
Impact of Current Economic Conditions
Current wording
Impact of Current Economic and Market Conditions
Previous wording
Recent macroeconomic events including increased tariffs, elevated inflation and energy prices, and fluctuating interest rates and foreign currency exchange rates, as well as geopolitical instability and conflicts, continue to impact the global economy and create uncertainty, volatility, and disruption of financial markets. As a result, we have experienced, and may continue to experience, a moderation of revenue growth rates due to deal scrutiny and the lengthening of certain sales cycles, particularly within net new opportunities, as well as reduced growth in headcount-level commitments upon renewals of existing customers. The extended sales cycles are particularly evident in the government, higher education, and healthcare industries which are tied to federal funding. Further, we have provided, and may continue to provide, certain customers with more flexible payment terms. For further discussion of the potential impacts of recent macroeconomic events on our business, financial condition, and operating results, see “Risk Factors” included in Part II, Item 1A of this report.
Current wording
Recent macroeconomic events and evolving market conditions are impacting aspects of our business including customer behavior and the way we market, price, and sell our solutions. External factors such as increased tariffs, elevated inflation and energy prices, the evolving legislative and regulatory environment, and fluctuating interest rates and foreign currency exchange rates, as well as geopolitical instability and conflicts, continue to impact the global economy and create uncertainty, volatility, and disruption of financial markets. As a result, we have experienced, and may continue to experience, a moderation of revenue growth rates due to deal scrutiny and the lengthening of certain sales cycles, particularly within net new opportunities, as well as reduced growth in headcount-level commitments upon renewals of existing customers. The extended sales cycles are particularly evident in the government, higher education, and healthcare industries which are tied to federal funding. Further, we have provided, and may continue to provide, certain customers with more flexible payment terms. Additionally, to address the rapidly changing technology market and AI landscape, we are addressing shifts in customer buying behavior and demand through actions such as new pricing models and sales and marketing strategies, all of which are dependent on our ability to optimally price our solutions, customer adoption and usage, and our costs to deliver our solutions. For further discussion of the potential impacts of recent macroeconomic events and market conditions on our business, financial condition, and operating results, see “Risk Factors” included in Part II, Item 1A of this report.
Previous wording
Subscription services revenues accounted for approximately 93% of our total revenues for the three months ended April 30, 2026, and represented 97% of our total unearned revenue as of April 30, 2026. Subscription services revenues are driven primarily by the number of customers, the number of workers at each customer, the specific applications subscribed to by each customer, and the price of our applications.
Current wording
Subscription services revenues accounted for approximately 93% of our total revenues for the three and six months ended July 31, 2026, and represented 97% of our total unearned revenue as of July 31, 2026. Subscription services revenues are driven primarily by the number of customers, the number of workers at each customer, the specific applications subscribed to by each customer, and the price of our applications.
Previous wording
Our subscription revenue backlog, which is also referred to as remaining performance obligations for subscription contracts, represents contracted subscription services revenues that have not yet been recognized and includes billed and unbilled amounts. Subscription revenue backlog may fluctuate from period-to-period due to a number of factors, including the timing of renewals and overall renewal rates, new business growth, average contract duration, business combinations, and seasonality.
Current wording
Our subscription revenue backlog, which is also referred to as remaining performance obligations for subscription contracts, represents contracted subscription services revenues that have not yet been recognized and includes billed and unbilled amounts. Subscription revenue backlog may fluctuate from period-to-period due to a number of factors, including the timing of renewals and overall renewal rates, new business growth, average contract duration, industry and product mix, business combinations, and seasonality.
Previous wording
Total revenues were $2.5 billion for the three months ended April 30, 2026, compared to $2.2 billion for the prior year period, an increase of $302 million, or 13%. Subscription services revenues were $2.4 billion for the three months ended April 30, 2026, compared to $2.1 billion for the prior year period, an increase of $295 million, or 14%. Approximately 60% of the increase in subscription services revenues was attributable to expansion within our customers that existed as of the beginning of the comparable prior year period, and the remaining 40% was attributable to customers added after the beginning of the comparable prior year period. Professional services revenues were $188 million for the three months ended April 30, 2026, compared to $181 million for the prior year period, an increase of $7 million, or 4%. Professional services revenues remained relatively flat as we continued to expand and leverage our service providers.
Current wording
Total revenues were $2.6 billion for the three months ended July 31, 2026, compared to $2.3 billion for the prior year period, an increase of $301 million, or 13%. Subscription services revenues were $2.5 billion for the three months ended July 31, 2026, compared to $2.2 billion for the prior year period, an increase of $302 million, or 14%. Approximately 60% of the increase in subscription services revenues was attributable to expansion within our customers that existed as of the beginning of the comparable prior year period, and the remaining 40% was attributable to customers added after the beginning of the comparable prior year period. Professional services revenues were $178 million for the three months ended July 31, 2026, compared to $179 million for the prior year period, a decrease of $1 million, or 1%. Professional services revenues remained relatively flat as we continued to expand and leverage our service providers.
Previous wording
As of April 30, 2026, our total subscription revenue backlog was $27.3 billion, with $8.8 billion expected to be recognized in revenues over the next 12 months. As of April 30, 2025, our total subscription revenue backlog was $24.6 billion, with $7.6 billion expected to be recognized in revenues over the next 12 months. The increase in subscription revenue backlog was primarily driven by expansion within our existing customer base, sales to new customers, and timing of renewals for existing customers.
Current wording
As of July 31, 2026, our total subscription revenue backlog was $27.4 billion, and 12-month subscription revenue backlog was $9.0 billion. As of July 31, 2025, our total subscription revenue backlog was $25.4 billion, and 12-month subscription revenue backlog was $7.9 billion. The increase in subscription revenue backlog was primarily driven by expansion within our existing customer base, sales to new customers, and timing of renewals for existing customers.
Previous wording
Total costs and expenses were $2.2 billion for the three months ended April 30, 2026, compared to $2.2 billion for the prior year period, an increase of $4 million, or 0.2%. The increase in total costs and expenses included increases of $60 million in employee-related expenses, $51 million in third-party hosted infrastructure expenses, $36 million in facilities and IT-related expenses, $15 million in amortization of acquisition-related intangible assets, and $11 million in amortization of deferred sales commissions, offset by a reduction of $166 million in restructuring expenses.
Current wording
Total costs and expenses were $4.5 billion for the six months ended July 31, 2026, compared to $4.3 billion for the prior year period, an increase of $240 million, or 6%. The increase in total costs and expenses included increases of $185 million in employee-related expenses, $82 million in third-party hosted infrastructure expenses, $80 million in facilities and IT-related expenses, $29 million in amortization of acquisition-related intangible assets, and $22 million in amortization of deferred sales commissions, offset by a reduction of $167 million in restructuring expenses.
Previous wording
Costs of subscription services were $412 million for the three months ended April 30, 2026, compared to $350 million for the prior year period, an increase of $62 million, or 18%. The increase in costs of subscription services included increases of $47 million in third-party hosted infrastructure expenses and $11 million in amortization of acquisition-related intangible assets.
Current wording
Costs of subscription services were $436 million for the three months ended July 31, 2026, compared to $370 million for the prior year period, an increase of $66 million, or 18%. The increase in costs of subscription services included increases of $33 million in third-party hosted infrastructure expenses, $14 million in employee-related expenses, $9 million in amortization of acquisition-related intangible assets, and $9 million in facilities and IT-related expenses.
Previous wording
Costs of professional services were $192 million for the three months ended April 30, 2026, compared to $187 million for the prior year period, an increase of $5 million, or 3%. Costs of professional services remained relatively flat.
Current wording
Costs of professional services were $216 million for the three months ended July 31, 2026, compared to $212 million for the prior year period, an increase of $4 million, or 2%. Costs of professional services remained relatively flat.
Previous wording
Product development expenses were $705 million for the three months ended April 30, 2026, compared to $663 million for the prior year period, an increase of $42 million, or 6%. The increase in product development expenses included increases of $31 million in employee-related expenses and $16 million in facilities and IT-related expenses.
Current wording
Product development expenses were $747 million for the three months ended July 31, 2026, compared to $660 million for the prior year period, an increase of $88 million, or 13%. The increase in product development expenses included increases of $71 million in employee-related expenses and $22 million in facilities and IT-related expenses.
Previous wording
Sales and marketing expenses were $679 million for the three months ended April 30, 2026, compared to $623 million for the prior year period, an increase of $56 million, or 9%. The increase in sales and marketing expenses included increases of $22 million in employee-related expenses, $11 million in amortization of deferred sales commissions, and $11 million in facilities and IT-related expenses.
Current wording
Sales and marketing expenses were $706 million for the three months ended July 31, 2026, compared to $641 million for the prior year period, an increase of $65 million, or 10%. The increase in sales and marketing expenses included increases of $28 million in employee-related expenses, $11 million in amortization of deferred sales commissions, and $8 million related to marketing programs.
Previous wording
General and administrative expenses were $216 million for the three months ended April 30, 2026, compared to $212 million for the prior year period, an increase of $4 million, or 2%. General and administrative expenses remained relatively flat.
Current wording
General and administrative expenses were $231 million for the three months ended July 31, 2026, compared to $216 million for the prior year period, an increase of $15 million, or 7%. The increase in general and administrative expenses included an increase of $8 million in employee-related expenses.
Previous wording
There were no restructuring expenses recognized during the three months ended April 30, 2026.
Current wording
There were no material restructuring expenses recognized during the three and six months ended July 31, 2026.
Previous wording
Restructuring expenses were $166 million for the three months ended April 30, 2025, of which $132 million related to employee transition, severance payments, employee benefits, and share-based compensation, and $34 million related to an impairment of office space.
Current wording
Restructuring expenses were $1 million and $167 million for the three and six months ended July 31, 2025, respectively. These expenses included $133 million related to employee transition, severance payments, employee benefits, and share-based compensation, and $34 million related to an impairment of office space.
Previous wording
Share-based compensation expense decreased by $50 million for the three months ended April 30, 2026, compared to the prior year period, primarily due to a reduction in restructuring expenses.
Current wording
Share-based compensation expense increased by $20 million for the six months ended July 31, 2026, compared to the prior year period, primarily due to additional grants to new and existing employees, offset by a reduction in restructuring expenses.
Previous wording
Equity compensation is an important element of our compensation philosophy. While we expect share-based compensation expense to grow in absolute dollars as we expand our global workforce, we expect it to decline as a percentage of total revenues.
Current wording
Equity compensation is an important element of our compensation philosophy. We expect share-based compensation expense to grow in absolute dollars as we continue to issue share-based awards to our employees but decline as a percentage of total revenues.
Previous wording
GAAP operating income was $338 million, or 13.3% of revenues, for the three months ended April 30, 2026, compared to the prior year GAAP operating income of $39 million, or 1.8% of revenues. The increase is primarily due to our revenue growth outpacing headcount growth, a reduction in restructuring expenses, and moderation of operating expenses, including share-based compensation.
Current wording
GAAP operating income was $651 million, or 12.5% of revenues, for the six months ended July 31, 2026, compared to the prior year GAAP operating income of $287 million, or 6.3% of revenues. The increase is primarily due to our revenue growth outpacing headcount growth, a reduction in restructuring expenses, and moderation of operating expenses.
Previous wording
Non-GAAP operating income was $809 million, or 31.8% of revenues, for the three months ended April 30, 2026, compared to the prior year non-GAAP operating income of $677 million, or 30.2% of revenues. The increase is primarily due to our revenue growth outpacing headcount growth and moderation of operating expenses.
Current wording
Non-GAAP operating income was $824 million, or 31.1% of revenues, for the three months ended July 31, 2026, compared to the prior year non-GAAP operating income of $680 million, or 29.0% of revenues. The increase is primarily due to our revenue growth outpacing headcount growth and moderation of operating expenses.
Previous wording
(1)Share-based compensation expense in the GAAP to non-GAAP reconciliation tables above excludes share-based compensation associated with restructuring activities of $42 million for the three months ended April 30, 2025. These expenses are included in Restructuring costs.
Current wording
(1)Share-based compensation expense in the GAAP to non-GAAP reconciliation tables above excludes share-based compensation associated with restructuring activities of $42 million for the six months ended July 31, 2025. This expense is included in Restructuring costs. There was no comparable activity for the six months ended July 31, 2026.
Previous wording
Other income, net decreased by$47 millionfor the three months ended April 30, 2026, primarily due to lower interest income following the liquidation of marketable debt securities in the prior fiscal year to fund acquisition activities and share repurchases.
Current wording
Other income, net decreased by $42 million and $89 million for the three and six months ended July 31, 2026, respectively, compared to the prior year periods. The decreases were primarily due to lower interest income resulting from the liquidation of marketable debt securities to fund acquisition activities and share repurchases.
Previous wording
The provision for income taxes was as follows (in millions):
Current wording
The provision for (benefit from) income taxes was as follows (in millions):
Previous wording
The income tax provision for the three months ended April 30, 2025, was primarily attributable to earnings in the U.S. and profitable foreign jurisdictions.
Current wording
The income tax provision for the three and six months ended July 31, 2025, was primarily attributable to earnings in the U.S. and profitable foreign jurisdictions.
Previous wording
As of April 30, 2026, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $4.4 billion, which were primarily held for working capital and general corporate purposes. Our cash equivalents and marketable securities are primarily composed of, in order from largest to smallest, corporate bonds, U.S. treasury securities, U.S. agency obligations, money market funds, asset-backed securities, and supranational securities.
Current wording
As of July 31, 2026, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $3.4 billion, which were primarily held for working capital and general corporate purposes. Our cash equivalents and marketable securities are primarily composed of, in order from largest to smallest, corporate bonds, U.S. treasury securities, money market funds, asset-backed securities, U.S. agency obligations, and supranational securities.
Previous wording
Our long-term future capital requirements depend on many factors, including the effects of macroeconomic trends, customer growth rates, subscription renewal activity, headcount growth, the timing and extent of development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced services offerings, infrastructure development, and our investment and acquisition activities. As part of our strategy, we may choose to seek additional debt or equity financing, which may not be available on terms favorable to us or at all. Additionally, our cash provided by operating activities could be affected by various risks and uncertainties, including the “Risk Factors” included in Part II, Item 1A of this report.
Current wording
Our future capital requirements depend on many factors, including the effects of macroeconomic trends, customer growth rates, subscription renewal activity, headcount levels, the timing and extent of development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced services offerings, infrastructure development, and our investment and acquisition activities. As part of our strategy, we may choose to seek additional debt or equity financing, which may not be available on terms favorable to us or at all. Additionally, our cash provided by operating activities could be affected by various risks and uncertainties, including the “Risk Factors” included in Part II, Item 1A of this report.
Previous wording
Cash provided by operating activities was $696 million and $457 million for the three months ended April 30, 2026, and 2025, respectively. The improvement in cash provided by operating activities was primarily driven by higher cash collections of $463 million mainly due to increased sales, partially offset by increased employee-related payments of $90 million, increased supplier payments of $66 million to support our continued growth, and decreased interest income of $30 million.
Current wording
Cash provided by operating activities was $1.2 billion and $1.1 billion for the six months ended July 31, 2026, and 2025, respectively. The improvement in cash provided by operating activities was primarily driven by higher cash collections of $723 million mainly due to increased sales, partially offset by increased supplier payments of $196 million to support our continued growth, increased employee-related payments of $191 million, higher income tax payments of $73 million, and decreased interest income of $58 million.
Previous wording
Cash provided by investing activities was $97 million for the three months ended April 30, 2026, which primarily resulted from net inflows of $127 million related to marketable debt securities activity and inflows of $41 million from the exit of non-marketable equity investments, offset by capital expenditures of $80 million mainly for office space projects.
Current wording
Cash provided by investing activities was $1.0 billion for the six months ended July 31, 2026, which primarily resulted from net cash inflows of $1.1 billion related to marketable debt securities activity and net cash inflows of $29 million related to non-marketable equity investments activity, offset by capital expenditures of $139 million mainly for office space projects.
Previous wording
Cash used in investing activities was $523 million for the three months ended April 30, 2025, which primarily resulted from a net outflow of $483 million related to marketable debt securities activity and capital expenditures of $36 million mainly for office space projects.
Current wording
Cash used in investing activities was $510 million for the six months ended July 31, 2025, which primarily resulted from net cash outflows of $431 million related to marketable debt securities activity, capital expenditures of $64 million mainly for office space projects, and purchases of $15 million for non-marketable equity investments.
Previous wording
Cash used in financing activities was $1.7 billion for the three months ended April 30, 2026, which primarily resulted from repurchases of common stock of $1.6 billion under our share repurchase programs and taxes paid of $146 million related to net share settlement of equity awards.
Current wording
Cash used in financing activities was $3.1 billion for the six months ended July 31, 2026, which primarily resulted from repurchases of common stock of $2.9 billion under our share repurchase programs and taxes paid of $273 million related to net share settlement of equity awards, offset by proceeds of $98 million from the issuance of common stock from employee equity plans.
Previous wording
Cash used in financing activities was $501 million for the three months ended April 30, 2025, which primarily resulted from repurchases of common stock of $290 million under our share repurchase programs and taxes paid of $211 million related to net share settlement of equity awards.
Current wording
Cash used in financing activities was $850 million for the six months ended July 31, 2025, which primarily resulted from repurchases of common stock of $589 million under our share repurchase programs and taxes paid of $372 million related to net share settlement of equity awards, offset by proceeds of $111 million from the issuance of common stock from employee equity plans.
Previous wording
Free cash flows were $616 million for the three months ended April 30, 2026, compared to $421 million for the prior year period. The improvement was primarily driven by higher cash collections of $463 million mainly due to increased sales, partially offset by increased employee-related payments of $90 million, increased supplier payments of $66 million to support our continued growth, increased capital expenditures of $44 million, and decreased interest income of $30 million.
Current wording
Free cash flows were $1.1 billion for the six months ended July 31, 2026, compared to $1.0 billion for the prior year period. The improvement was primarily driven by higher cash collections of $723 million mainly due to increased sales, partially offset by increased supplier payments of $196 million to support our continued growth, increased employee-related payments of $191 million, increased capital expenditures of $75 million, higher income tax payments of $73 million, and decreased interest income of $58 million.
Previous wording
Share repurchase programs authorized by our Board of Directors that were active during the periods presented were as follows (in millions):
Current wording
Share repurchase programs authorized by our Board of Directors that were in effect during the three and six months ended July 31, 2026, and 2025, were as follows (in millions):
Previous wording
For further information, see Note 13, Stockholders’ Equity, of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.
Current wording
As of July 31, 2026, our share repurchase programs were fully completed with no authorization remaining. In August 2026, our Board of Directors authorized the repurchase of up to an additional $4.0 billion of our outstanding shares of Class A common stock. For further information, see Note 13, Stockholders’ Equity, and Note 20, Subsequent Event, of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.
Previous wording
See “Results of Operations—Operating Income and Operating Margin” for reconciliations from the most directly comparable GAAP financial measures of GAAP operating income and GAAP operating margin, to the non-GAAP financial measures of non-GAAP operating income and non-GAAP operating margin, for the three months ended April 30, 2026, and 2025.
Current wording
See “Results of Operations—Operating Income and Operating Margin” for reconciliations from the most directly comparable GAAP financial measures of GAAP operating income and GAAP operating margin, to the non-GAAP financial measures of non-GAAP operating income and non-GAAP operating margin, for the three and six months ended July 31, 2026, and 2025.
Previous wording
See “Liquidity and Capital Resources—Free Cash Flows” for a reconciliation from the most comparable GAAP financial measure, net cash provided by operating activities, to the non-GAAP financial measure, free cash flows, for the three months ended April 30, 2026, and 2025.
Current wording
See “Liquidity and Capital Resources—Free Cash Flows” for a reconciliation from the most comparable GAAP financial measure, net cash provided by operating activities, to the non-GAAP financial measure, free cash flows, for the six months ended July 31, 2026, and 2025.
Previous wording
For a further discussion of our critical accounting estimates, refer to our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. During the three months ended April 30, 2026, there were no significant changes to our critical accounting estimates.
Current wording
For a further discussion of our critical accounting estimates, refer to our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. During the six months ended July 31, 2026, there were no significant changes to our critical accounting estimates.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Total revenues were $5.2 billion for the six months ended July 31, 2026, compared to $4.6 billion for the prior year period, an increase of $603 million, or 13%. Subscription services revenues were $4.8 billion for the six months ended July 31, 2026, compared to $4.2 billion for the prior year period, an increase of $597 million, or 14%. Approximately 60% of the increase in subscription services revenues was attributable to expansion within our customers that existed as of the beginning of the prior fiscal year, and the remaining 40% was attributable to customers added after the beginning of the prior fiscal year. Professional services revenues were $365 million for the six months ended July 31, 2026, compared to $360 million for the prior year period, an increase of $6 million, or 2%. Professional services revenues remained relatively flat as we continued to expand and leverage our service providers.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The income tax provision for the three months ended April 30, 2026, was primarily attributable to earnings in the U.S. and profitable foreign jurisdictions, and incremental tax expense from share-based compensation awards where the tax deduction realized was lower than the compensation expense recognized.