Workday, Inc. 8-K

What Happened
Workday, Inc. filed an 8-K on February 4, 2026 announcing reorganizations affecting certain functions that are expected to eliminate approximately 2% of its workforce, primarily in non-revenue roles within Global Customer Operations. The company expects to recognize about $135 million of related charges in fiscal 2026 Q4 and says its fiscal 2026 Q4 and full-year results remain in line with prior guidance except for the GAAP operating margin impact. Workday will report its fiscal 2026 Q4 and full-year results on February 24, 2026.

Key Details

• Reorganization announced February 4, 2026; workforce reduction ~2%, mainly non-revenue Global Customer Operations roles.
• Estimated charges ~ $135 million in Q4 FY2026: ~$40 million cash severance/benefits, ~$15 million non‑cash stock‑based compensation, and ~ $80 million non‑cash impairments of office space and long‑lived assets.
• GAAP operating margin expected to be 24–25 percentage points lower than non‑GAAP in Q4 FY2026, and 22–23 points lower for the full year; the company intends to exclude these charges from its non‑GAAP measures.
• Actions expected to be substantially completed by Q1 FY2027; estimates are preliminary, unaudited and may change.

Why It Matters
These items affect how investors should read Workday’s upcoming results: revenue and other financial metrics remain in line with prior guidance, but GAAP profitability will be materially reduced in Q4 and for the year due to restructuring and impairment charges. The company’s intention to exclude these items from non‑GAAP measures means non‑GAAP margins will be higher than GAAP margins by the amounts stated; investors should compare both GAAP and non‑GAAP figures and review the company’s disclosures when results are released on February 24, 2026.