Workday, Inc. stock research
FY2025 Q1
Workday (WDAY) Gross Margin — Quarter Ended Apr 30, 2025
Revenue and gross profit both rose compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue decreased relative to the prior quarter, contributing to an improved gross margin, while gross margin also strengthened versus the same quarter last year.
Gross margin takeaway
Quarter ended Apr 30, 2025 · FY2025 Q1
Revenue and gross profit both rose compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue decreased relative to the prior quarter, contributing to an improved gross margin, while gross margin also strengthened versus the same quarter last year.
- The improvement in gross margin from the prior quarter was driven by a lower cost of revenue even as revenue held steady. The year-over-year increase in gross margin reflects revenue growth that outpaced the increase in cost of revenue.
- Compared with the immediately preceding quarter, gross margin improved as cost of revenue declined while revenue remained similar. Compared with the same quarter one year earlier, gross margin also improved, supported by higher revenue and a proportionally smaller increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.0%
Gross profit
$1.7B
Revenue
$2.2B
Cost of revenue
$516.0M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+1.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 31, 2024 | $2.1B | $1.6B | $491.0M | 76.5% |
| Oct 31, 2024 | $2.2B | $1.6B | $510.0M | 76.4% |
| Jan 31, 2025 | $2.2B | $1.7B | $539.0M | 75.6% |
| Apr 30, 2025 | $2.2B | $1.7B | $516.0M | 77.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2025
+1.3 pts
Year-over-year change
Apr 30, 2023
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a lower cost of revenue even as revenue held steady. The year-over-year increase in gross margin reflects revenue growth that outpaced the increase in cost of revenue.
Compared with the immediately preceding quarter, gross margin improved as cost of revenue declined while revenue remained similar. Compared with the same quarter one year earlier, gross margin also improved, supported by higher revenue and a proportionally smaller increase in cost of revenue.
Monitor the trajectory of cost of revenue, which declined from the prior quarter but rose year-over-year, to assess its impact on future gross margin direction.