Workday faces potential headcount crunch at customers

"We're focused not on just seats, but actually revenue per seat."

"We have so much more to sell back into our customer base, and that drives strength for us and offsets any potential impact we might see from headcount reductions in our customers, he said. Also, our customers do true-ups with us both annually on their headcount... and we do have floors and minimums that the customer can bring their headcount down, and that gives us some protection."

"continue to grow modestly."

Workday posted Q3 fiscal 2026 revenue of $2.4 billion, a 12.6 percent year‑on‑year increase, and net income rose to $252 million from $193 million. Subscription revenue and forecasts met expectations, but the share price fell about 7 percent. The company added new customers and expanded deployments at Levi Strauss and Novartis, while overall customer headcount grew modestly and some customers cut staff. The per‑employee license model makes stagnant or declining headcount a direct growth risk. The company is emphasizing revenue per seat by cross‑selling solutions from acquisitions including Evisort, HiredScore, Sana, Paradox, and Flowise; annual true‑ups and contractual minimums provide some protection.

Read at Theregister