What is Workday, Inc.'s deferred contract costs?

Workday, Inc. (WDAY) reported deferred contract costs of $634.00M in Q4 2025.

How has Workday, Inc.'s deferred contract costs changed year-over-year?

Workday, Inc.'s deferred contract costs increased by 13.0% year-over-year, from $561.00M to $634.00M.

What is the long-term trend for Workday, Inc.'s deferred contract costs?

Over 5 years (2021 to 2026), Workday, Inc.'s deferred contract costs has grown at a 18.5% compound annual growth rate (CAGR), from $271.80M to $634.00M.

What does deferred contract costs mean?

Capitalized costs related to long-term service contracts that will be recognized as expenses in future periods.

Discontinued — last reported Q3 '21

Non-Current Assets

Deferred contract costs

Workday, Inc. Deferred contract costs increased by 10.6% to $634.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 13.0%, from $561.00M to $634.00M. Over 5 years (FY 2021 to FY 2026), Deferred contract costs shows an upward trend with a 18.5% CAGR.

Analysis

StatementBalance Sheet Statement

SectionNon-Current Assets

CategoryGrowth

SignalContext dependent

VolatilityModerate

First reportedQ4 2020

Last reportedQ3 2021

How to read this metric

An increase suggests high investment in new long-term client engagements, while a decrease may indicate lower new business activity or accelerated amortization.

Detailed definition

These represent costs incurred to fulfill a contract that are expected to be recovered over a period exceeding one year....

Peer comparison

Common in IT services and consulting firms; peers often report this as 'Contract Acquisition Costs' or 'Deferred Implementation Costs'.

Metric ID: non_current_assets_deferred_costs

Historical Data

20 periods

	Q1 '21	Q2 '21	Q3 '21	Q4 '21	Q1 '22	Q2 '22	Q3 '22	Q4 '22	Q1 '23	Q2 '23	Q3 '23	Q4 '23	Q1 '24	Q2 '24	Q3 '24	Q4 '24	Q1 '25	Q2 '25	Q3 '25	Q4 '25
Value	$265.39M	$278.20M	$287.65M	$341.26M	$339.71M	$353.99M	$359.62M	$421.00M	$405.98M	$415.69M	$432.28M	$509.00M	$489.00M	$487.00M	$490.00M	$561.00M	$544.00M	$562.00M	$573.00M	$634.00M
QoQ Change	—	+4.8%	+3.4%	+18.6%	-0.5%	+4.2%	+1.6%	+17.1%	-3.6%	+2.4%	+4.0%	+17.7%	-3.9%	-0.4%	+0.6%	+14.5%	-3.0%	+3.3%	+2.0%	+10.6%
YoY Change	—	—	—	—	+28.0%	+27.2%	+25.0%	+23.4%	+19.5%	+17.4%	+20.2%	+20.9%	+20.4%	+17.2%	+13.4%	+10.2%	+11.2%	+15.4%	+16.9%	+13.0%

Range$265.39M – $634.00M

CAGR+20.1%

Avg YoY Growth+18.7%

Median YoY Growth+18.5%

Current Streak3 quarters growth

Frequently Asked Questions

What is Workday, Inc.'s deferred contract costs?: Workday, Inc. (WDAY) reported deferred contract costs of $634.00M in Q4 2025.
How has Workday, Inc.'s deferred contract costs changed year-over-year?: Workday, Inc.'s deferred contract costs increased by 13.0% year-over-year, from $561.00M to $634.00M.
What is the long-term trend for Workday, Inc.'s deferred contract costs?: Over 5 years (2021 to 2026), Workday, Inc.'s deferred contract costs has grown at a 18.5% compound annual growth rate (CAGR), from $271.80M to $634.00M.
What does deferred contract costs mean?: Capitalized costs related to long-term service contracts that will be recognized as expenses in future periods.