# Workday (WDAY) Forecast Calculator

Interactive five-year financial forecast and DCF for Workday. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/workday/forecast
- Industry: Technology
- Forecast start year: 2027

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2022 | 3627206000 | 765290000 | -301230000 | -480674000 |
| 2023 | 4317996000 | 1262325000 | -17599000 | -282431000 |
| 2024 | 5139000000 | 1480000000 | 147000000 | 29000000 |
| 2025 | 6216000000 | 1293000000 | 53000000 | -367000000 |
| 2026 | 7259000000 | 1917000000 | 386000000 | 1381000000 |

## Frequently asked questions

### What services does Workday, Inc. provide?

Workday, Inc. is a leading provider of enterprise cloud applications, primarily focusing on human capital management (HCM) and financial management. The company delivers solutions for human resources, planning, spend management, and analytics to large enterprises and educational institutions.

### How does Workday generate its revenue?

Workday primarily generates revenue through its Subscription Services, which account for approximately 91% of its total revenue. The remaining portion comes from Professional Services, with growth driven by expanding market share in financial management and new AI-centric product launches.

### What are Workday's key capital expenditure assumptions in its financial model?

Workday's financial model assumes capital expenditures as a percentage of revenue to be around 3% to 5%. This capex is predominantly growth-related, funding data center expansion and capitalised software development, including investments in AI infrastructure.

### What is the primary goal of the Workday financial model?

The Workday financial model serves as a comprehensive equity valuation and scenario planning tool. Its main purpose is to determine whether the company's strategic transition towards higher operating margins and AI-driven product expansion justifies its current market valuation.

### Is there an Excel financial model available for Workday?

Yes, a downloadable Excel financial model is available for Workday, Inc. This general corporate model provides a forecast horizon spanning from FY2027 through FY2031.

### How does Workday's net working capital profile impact its operations?

Workday exhibits a deeply negative net working capital profile, which acts as a massive source of funding for the business. This is primarily because the company collects cash upfront for annual subscriptions, while revenue is recognized over a 12-month period.