Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Workday Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Jan 31, 2026	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Net income (loss)	693)	526)	1,381)	(367)	29)	(282)
Depreciation and amortization	347)	326)	282)	364)	344)	294)
Share-based compensation expenses	1,626)	1,519)	1,416)	1,295)	1,101)	1,005)
Amortization of deferred costs	292)	251)	213)	175)	139)	113)
Non-cash lease expense	116)	103)	96)	92)	86)	84)
Net (gains) losses on investments	(87)	16)	19)	31)	(146)	(17)
Accretion of discounts on marketable debt securities, net	(61)	(113)	(149)	(42)	3)	—)
Deferred income taxes	218)	33)	(1,058)	4)	(22)	—)
Asset impairments	117)	19)	—)	—)	—)	—)
Other	7)	(1)	(17)	58)	9)	58)
Trade and other receivables, net	(360)	(313)	(87)	(319)	(208)	(159)
Deferred costs	(404)	(337)	(342)	(292)	(238)	(184)
Prepaid expenses and other assets	(14)	50)	69)	(14)	(35)	52)
Accounts payable	6)	25)	(72)	86)	9)	(3)
Accrued expenses and other liabilities	(26)	(41)	(95)	136)	51)	(18)
Unearned revenue	469)	398)	493)	452)	530)	327)
Changes in operating assets and liabilities, net of business combinations	(329)	(218)	(34)	48)	108)	14)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	2,246)	1,935)	768)	2,024)	1,621)	1,551)
Net cash provided by operating activities	2,939)	2,461)	2,149)	1,657)	1,651)	1,268)
Purchases of marketable securities	(2,721)	(4,786)	(6,150)	(7,183)	(2,859)	(2,732)
Maturities of marketable securities	2,339)	3,846)	4,519)	4,949)	2,804)	1,802)
Sales of marketable securities	2,937)	273)	144)	104)	199)	11)
Capital expenditures	(162)	(269)	(232)	(364)	(436)	(259)
Business combinations, net of cash acquired	(2,079)	(825)	(8)	—)	(1,190)	—)
Purchase of other intangible assets	—)	(3)	(10)	(1)	(8)	(3)
Purchases of non-marketable equity and other investments	(21)	(22)	(16)	(23)	(123)	(67)
Sales of non-marketable equity and other investments	19)	5)	2)	12)	5)	7)
Other	21)	—)	—)	—)	—)	—)
Net cash (used in) provided by investing activities	333)	(1,781)	(1,751)	(2,506)	(1,607)	(1,242)
Proceeds from issuance of debt, net of debt discount	—)	—)	—)	2,978)	—)	748)
Repayments and extinguishment of debt	—)	—)	—)	(1,844)	(38)	(269)
Payments for debt issuance costs	—)	—)	—)	(7)	—)	—)
Repurchases of common stock	(2,895)	(700)	(423)	(75)	—)	—)
Proceeds from issuance of common stock from employee equity plans	192)	186)	177)	152)	148)	149)
Taxes paid related to net share settlement of equity awards	(616)	(636)	(22)	—)	—)	—)
Other	—)	—)	—)	(1)	—)	(3)
Net cash provided by (used in) financing activities	(3,319)	(1,150)	(268)	1,204)	110)	625)
Effect of exchange rate changes	2)	—)	(1)	(1)	(1)	1)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(45)	(470)	129)	354)	153)	653)
Cash, cash equivalents, and restricted cash at the beginning of period	1,554)	2,024)	1,895)	1,541)	1,388)	735)
Cash, cash equivalents, and restricted cash at the end of period	1,509)	1,554)	2,024)	1,895)	1,541)	1,388)

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).

The cash flow statement reveals a volatile financial performance over the analyzed period. While operating activities generally provide positive cash flow, significant fluctuations occur in investing and financing activities, resulting in inconsistent overall cash positions. Net income demonstrates substantial variability, impacting overall cash flow patterns.

Operating Activities: Net cash provided by operating activities exhibits a generally increasing trend, rising from US$1,268 million in 2021 to US$2,939 million in 2026. However, there is a noticeable dip to US$2,149 million in 2024. Adjustments to reconcile net income to net cash provided by operating activities are consistently positive and substantial, indicating significant non-cash items influencing cash flow from operations. These adjustments remain relatively stable between US$1,551 million and US$2,246 million throughout the period. Changes in operating assets and liabilities, net of business combinations, are initially positive but become increasingly negative, particularly from 2024 onwards, offsetting some of the positive impact from net income and other adjustments.
Investing Activities: Investing activities consistently represent a cash outflow, although the magnitude varies considerably. Purchases of marketable securities are a major driver of these outflows, peaking at US$7,183 million in 2023 before decreasing to US$2,721 million in 2026. Maturities of marketable securities provide a partial offset, with values generally ranging between US$2,339 million and US$4,949 million. Capital expenditures remain relatively stable, ranging from US$232 million to US$436 million. Business combinations represent significant cash outflows in 2022 and 2025, totaling US$1,190 million and US$825 million respectively, and a substantial outflow in 2026 of US$2,079 million. Overall, net cash used in investing activities decreases from US$1,242 million in 2021 to US$333 million in 2026.
Financing Activities: Financing activities demonstrate the most significant fluctuations. Positive cash flow from financing is observed in 2021 and 2023, driven primarily by proceeds from the issuance of debt. However, 2024, 2025, and 2026 show substantial negative cash flow, largely due to significant repurchases of common stock, peaking at US$2,895 million in 2026. Repayments and extinguishment of debt also contribute to cash outflows in earlier years. Taxes paid related to net share settlement of equity awards become a substantial outflow in 2025 and 2026, reaching US$616 million and US$636 million respectively. Net cash provided by (used in) financing activities shifts from a positive US$625 million in 2021 to a negative US$3,319 million in 2026.
Cash Position: The net increase (decrease) in cash, cash equivalents, and restricted cash is highly variable. A significant increase of US$653 million is observed in 2021, followed by smaller increases in subsequent years, before turning negative in 2025 and 2026. Despite these fluctuations, the ending cash balance generally increases from US$1,388 million in 2021 to US$1,509 million in 2026, although the rate of increase slows and even reverses in the later years.

The company’s cash flow patterns are heavily influenced by its investment and financing decisions, particularly regarding marketable securities, debt issuance, and share repurchases. The volatility in net income also plays a role, but is largely offset by consistent adjustments related to non-cash items. The increasing negative trend in changes in operating assets and liabilities warrants further investigation.

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Workday Inc. (NASDAQ:WDAY)

Cash Flow Statement