Workday, Inc. stock research
FY2026 Q4
Workday (WDAY) Gross Margin — Quarter Ended Jan 31, 2026
Revenue increased versus the prior quarter, while gross profit was stable; cost of revenue rose, leading to a slight weakening in gross margin. Compared with the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved modestly.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2026 Q4
Revenue increased versus the prior quarter, while gross profit was stable; cost of revenue rose, leading to a slight weakening in gross margin. Compared with the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved modestly.
- The strongest observable margin driver is the increase in cost of revenue, which grew faster than revenue, resulting in a lower gross margin sequentially.
- Gross margin weakened compared to the immediately preceding quarter, but improved relative to the same quarter one year earlier. Revenue and cost of revenue were both higher in both comparisons, with gross profit stable sequentially and higher year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.9%
Gross profit
$1.9B
Revenue
$2.5B
Cost of revenue
$611.0M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Apr 30, 2025 | $2.2B | $1.7B | $516.0M | 77.0% |
| Jul 31, 2025 | $2.3B | $1.8B | $561.0M | 76.1% |
| Oct 31, 2025 | $2.4B | $1.9B | $566.0M | 76.7% |
| Jan 31, 2026 | $2.5B | $1.9B | $611.0M | 75.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2025
-0.9 pts
Year-over-year change
Jan 31, 2025
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue, which grew faster than revenue, resulting in a lower gross margin sequentially.
Gross margin weakened compared to the immediately preceding quarter, but improved relative to the same quarter one year earlier. Revenue and cost of revenue were both higher in both comparisons, with gross profit stable sequentially and higher year-over-year.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth sequentially pressured gross margin.