Workday reported strong financial results for Q3 FY2025, with total revenues increasing 16% year-over-year to $2.16 billion. Subscription services revenue grew 16% to $1.96 billion, while professional services revenue rose 15% to $201 million. GAAP operating income nearly doubled to $165 million, representing a 7.6% operating margin, up from 4.7% in the prior year period.The company continued to demonstrate solid execution with subscription revenue backlog reaching $22.2 billion, up 20% year-over-year, with $7.0 billion expected to be recognized within the next 12 months. Cash flow from operations was $406 million, while free cash flow totaled $359 million. During the quarter, Workday completed the acquisition of Evisort for $311 million to enhance its AI-powered document intelligence capabilities.Looking ahead, Workday maintains strong business momentum with a 98% gross revenue retention rate. The company repurchased $157 million of shares under its share repurchase program and announced a new $1.0 billion share repurchase authorization in August 2024. Cash, cash equivalents, and marketable securities stood at $7.2 billion as of October 31, 2024.

Workday reported strong financial results for Q3 FY2025, with total revenues increasing 16% year-over-year to $2.16 billion. Subscription services revenue grew 16% to $1.96 billion, while professional services revenue rose 15% to $201 million. GAAP operating income nearly doubled to $165 million, representing a 7.6% operating margin, up from 4.7% in the prior year period.The company continued to demonstrate solid execution with subscription revenue backlog reaching $22.2 billion, up 20% year-over-year, with $7.0 billion expected to be recognized within the next 12 months. Cash flow from operations was $406 million, while free cash flow totaled $359 million. During the quarter, Workday completed the acquisition of Evisort for $311 million to enhance its AI-powered document intelligence capabilities.Looking ahead, Workday maintains strong business momentum with a 98% gross revenue retention rate. The company repurchased $157 million of shares under its share repurchase program and announced a new $1.0 billion share repurchase authorization in August 2024. Cash, cash equivalents, and marketable securities stood at $7.2 billion as of October 31, 2024.