Workday, Inc.WDAY

Workday, Inc. Earnings Per Share Disclosure

10-KFiled Mar 6, 20262 min read
Net Income Per Share
Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by giving effect to all potentially dilutive shares of common stock, including outstanding share-based awards consisting primarily of unvested RSUs and ESPP obligations. We determine the dilutive effect of outstanding share-based awards using the treasury stock method.
The holders of our Class A and Class B common stock have identical liquidation and dividend rights but different voting rights. Accordingly, we present net income per share for Class A and Class B common stock together as the two-class method does not result in a difference.
The following table presents the calculation of basic and diluted net income per share (in millions, except number of shares, which are reflected in thousands, and per share data):
Year Ended January 31,
2026
2025 (1)
2024 (1)
Net income per share, basic:
Numerator:
Net income$693 $526 $1,381 
Denominator:
Weighted-average shares outstanding, basic265,097 265,257 261,344 
Net income per share, basic$2.61 $1.98 $5.28 
Net income per share, diluted:
Numerator:
Net income $693 $526 $1,381 
Denominator:
Weighted-average shares outstanding, basic265,097 265,257 261,344 
Dilutive effect of share-based awards3,020 3,948 3,941 
Weighted-average shares outstanding, diluted268,117 269,205 265,285 
Net income per share, diluted$2.59 $1.95 $5.21 
(1)The prior period EPS for Class A and Class B common stock has been presented together to conform with current period presentation, which had no impact on our previously reported basic or diluted EPS.
The computation of diluted net income per share does not include the effect of the following potentially outstanding weighted-average shares of common stock because their effect would have been anti-dilutive (in thousands):
 Year Ended January 31,
 202620252024
Total weighted-average shares related to outstanding share-based awards
2,193 1,682 2,206 

Historical Timeline

Fiscal YearFiled
2026Mar 6, 2026Showing above
2025Mar 11, 2025

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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