Workday, Inc.WDAY

Workday, Inc. Revenue Disclosure

10-KFiled Mar 6, 20262 min read
Deferred Costs
Deferred costs, which consist of deferred sales commissions, were $940 million and $828 million as of January 31, 2026, and 2025, respectively. Amortization expense for the deferred costs was $292 million, $251 million, and $213 million for fiscal 2026, 2025, and 2024, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.
Contract Balances and Performance Obligations
Contract Balances
Contract assets and unearned revenue balances were as follows (in millions):
Consolidated Balance Sheets LocationAs of January 31,
20262025
Contract assets:
Contract assets, current
Trade and other receivables, net$443 $373 
Contract assets, noncurrent
Other assets59 44 
Total contract assets
$502 $417 
Unearned revenue:
Unearned revenue, current (1)
Unearned revenue$5,010 $4,467 
Unearned revenue, noncurrent
Unearned revenue, noncurrent71 80 
Total unearned revenue
$5,081 $4,547 
(1)Included in this balance are amounts related to professional services that are subject to cancellation and pro-rated refund rights of $89 million and $83 million as of January 31, 2026, and 2025, respectively.
Revenues of $4.4 billion, $4.0 billion, and $3.5 billion were recognized during fiscal 2026, 2025, and 2024, respectively, that were included in the unearned revenue balances at the beginning of the respective periods.
Transaction Price Allocated to the Remaining Performance Obligations
As of January 31, 2026, approximately $28.1 billion of revenues are expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenues on approximately $8.8 billion and $15.8 billion of these remaining performance obligations over the next 12 and 24 months, respectively, with the balance recognized thereafter. Revenues from remaining performance obligations for professional services contracts as of January 31, 2026, were not material.

Historical Timeline

Fiscal YearFiled
2026Mar 6, 2026Showing above
2025Mar 11, 2025
2023Feb 27, 2023
2022Feb 28, 2022
2021Mar 2, 2021
2020Mar 3, 2020
2019Mar 18, 2019
2018Mar 14, 2018

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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