Workday, Inc. Reiterates FY27 Guidance; GAAP Margin Reduced by Exit Charges

What Happened

• Workday, Inc. filed an 8‑K on September 29, 2026, reiterating the company’s fiscal 2027 third‑quarter and full‑year financial guidance given on its August 27, 2026 earnings call, with one exception: GAAP operating margin.
• Because of charges related to exit or disposal activities (described in Item 2.05 of the filing), Workday now expects its fiscal 2027 Q3 GAAP operating margin to be approximately 20–21 percentage points lower than its Q3 non‑GAAP operating margin, and its fiscal 2027 full‑year GAAP operating margin to be approximately 19 percentage points lower than full‑year non‑GAAP operating margin.
• Workday intends to exclude these charges from its non‑GAAP results.

Key Details

• Filing date: September 29, 2026 (Form 8‑K).
• Guidance source: Reiteration of guidance provided on August 27, 2026 earnings call.
• Q3 impact: GAAP operating margin ≈ 20–21 percentage points lower than non‑GAAP.
• Full‑year impact: GAAP operating margin ≈ 19 percentage points lower than non‑GAAP.
• Charges are tied to “Costs Associated with Exit or Disposal Activities” (Item 2.05) and will be excluded from non‑GAAP measures.

Why It Matters

• For investors, the change means reported (GAAP) profitability for the quarter and year will be materially lower than the non‑GAAP figures the company highlights; this can affect reported operating income and GAAP earnings per share for fiscal 2027.
• Revenue and other guidance were reiterated, so the update is specifically about how one‑time exit/disposal charges will be presented; investors should watch the company’s upcoming disclosures for the dollar amounts and timing of these charges when assessing quarterly results and earnings.