Recent Updates — WDAY
Workday issued and sold $2.5 billion in aggregate principal amount of senior unsecured notes across four tranches: $750 million at 5.700% due 2029, $500 million at 6.000% due 2031, $750 million at 6.300% due 2033, and $500 million at 6.500% due 2036. The company estimates net proceeds of approximately $2.47 billion after underwriting discounts and offering expenses. Workday intends to use the majority of these funds to redeem or retire its existing $1.0 billion in 3.500% notes due April 2027, with any remaining proceeds allocated for general corporate purposes. The company develops enterprise cloud applications for finance and human resources.
Workday, Inc. entered into a definitive agreement to acquire all outstanding capital stock of C1.ai, a leading agentic identity platform for people and AI agents. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of Workday’s fiscal year 2027, ending January 31, 2027. BofA Securities serves as financial advisor to Workday, while Qatalyst advises C1.ai. This acquisition aims to integrate identity governance capabilities into Workday's enterprise platform. Workday operates at the heart of the enterprise, providing cloud-based software for HR, finance, and IT.
On October 1, 2026, Workday entered into a new Credit Agreement replacing its prior facility dated April 6, 2022. The new agreement establishes a revolving credit facility with an aggregate principal amount of $1,500,000,000, maturing on October 1, 2031, with options to extend the maturity date for one year up to two times. As of the closing date, no amounts were outstanding under this facility. The agreement includes financial covenants limiting Workday's maximum leverage ratio to 3.50 to 1.00, stepping up to 4.50 to 1.00 following a Qualified Acquisition. Interest rates are tied to SOFR or base rate plus applicable margins based on credit ratings or leverage ratios. Workday operates in the enterprise software industry, providing cloud-based financial and human capital management applications.
Workday announced a workforce reduction of approximately 2.5% of its current employees, primarily within the Product and Technology team, alongside select leased office space reductions to align with strategic growth priorities. The company estimates it will incur $65 million to $80 million in charges related to these exit activities, including severance, stock-based compensation, and lease impairments. Approximately $55 million to $70 million of these costs are expected to be recognized in the third quarter of fiscal 2027, with the remaining $10 million in the fourth quarter. Workday also revised its fiscal 2027 GAAP operating margin guidance downward by approximately 20 percentage points for Q3 and 19 percentage points for the full year due to these charges. The company operates in the enterprise software industry, providing cloud-based financial management and human capital management applications.
Workday, Inc. reported fiscal 2027 second quarter results ending July 31, 2026, with total revenues of $2.649 billion, a 12.8% increase year-over-year, and diluted net income per share of $2.57. The company announced that its Board authorized an open-ended share repurchase program for up to $4.0 billion of Class A common stock. Workday updated its full-year fiscal 2027 guidance, projecting subscription revenues between $9.940 billion and $9.950 billion (13% growth) and a non-GAAP operating margin of 31.0%. The enterprise AI platform provider for HR, finance, and IT operates in the software industry.