Slide 1: Investor Presentation Q1 FY26
Investor Presentation Q1 FY26
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancements or
Slide 3: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to financial results presented in accordance with US generally accepted accounting principles (GAAP), this presentation includes certain non-GAAP financial measures of performance. These non-GAAP financial measures are in addition to, and not a substitute for or
Slide 4: Workday at a Glance
Workday at a Glance Workday at a Glance
Slide 5: Workday by the Numbers
Workday Leading AI Platform by the Numbers For Finance, HR, Planning, Spend Management and Analytics $160B 11,000+ Global Customers Market Opportunity1 Operating across 175+ Countries $7.961B 15.5% YoY Growth Serving 60%+ of the Fortune 500 Trailing Twelve Month Subscription Revenues2 Including 70%+
Slide 6: The Workday Platform
The Workday Workday Workday Customer’s Industry Ecosystem Platform Marketplace Services Extensibility and Interoperability Workday Extend Workday Integration Cloud Experience Natural Language Interactions Unified Experience Mobile Partner Integrations The Workday Product Portfolio HR Finance Plannin
Slide 7: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $8.800B FY26E2 18% CAGR Annual 98% Gross Revenue Subscription 28.5% Revenues FY26E2 Retention3 $4.546B FY22 560 bps Non-GAAP Operating Margin 22.9% FY221 1 Reconciliations of GAAP to Non-GAAP financial data included in the Appendix 2 FY26 subscription revenue and N
Slide 8: While Growing Responsibly
While Growing Responsibly Acting with Integrity Putting People First Protecting the Planet Delivering Responsible AI Skills Based Organization Net-Zero Carbon Footprint Developing trustworthy AI Investing in employee growth and Achieved net-zero carbon solutions to drive meaningful development by pu
Slide 9: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 10: Q1 FY26 Financial Highlights
Q1 FY26 Financial Highlights Q1 FY26 Results Increase (Decrease) YoY Total Revenues $2.240B 12.6% Subscription Revenues $2.059B 13.4% Total Subscription Revenue Backlog $24.62B 19.1% 12-month Subscription Revenue Backlog $7.63B 15.6% GAAP Operating Margin 1.8% (144) bps Non-GAAP Operating Margin1 30
Slide 11: Q1 FY26 Customer Wins and Expansions
Q1 FY26 Customer Wins and Expansions
Slide 12: Q1 FY26 Business Highlights
Q1 FY26 Business Highlights • Workday introduced new Illuminate Agents to accelerate hiring, enhance frontline worker experiences, simplify financial processes, and improve employee information access. • Evisort’s AI-powered contract intelligence and contract lifecycle management solutions became av
Slide 13: Guidance Summary
Guidance Summary Q2 FY26 Quarterly Guidance Increase (Decrease) YoY Total Revenues $2.340B 12% Subscription Revenues $2.160B 13% 12-month Subscription Revenue Backlog n/a 15% - 16% Non-GAAP Operating Margin 28% 314 bps GAAP Operating Margin ~20 points lower than non-GAAP n/a Full Year FY26 Full Year
Slide 14: Appendix
Appendix
Slide 15: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except percentages and per share data) Three Months Ended April 30, 2025 2024 Non-GAAP operating income Operating income (loss) $ 39 $ 64 Share-based compensation expense (1) 417 385 Employer payroll tax-related items on employee stock transacti
Slide 16: Reconciliations of GAAP to Non-GAAP Data (cont'd)
Reconciliations of GAAP to Non-GAAP Data (cont’d) (in millions, except percentages and per share data) Three Months Ended April 30, 2025 2024 Non-GAAP diluted net income per share (3)(4) Diluted net income per share $ 0.25 $ 0.40 Share-based compensation expense (1) 1.54 1.42 Employer payroll tax-re
Slide 17: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except percentages and per share data) Year Ended January 31, 2022 Non-GAAP operating margin(1) Operating margin (2.3) % Share-based compensation expense 21.6 % Employer payroll tax-related items on employee stock transactions 1.5 % Amortization
Slide 18: Reconciliations of GAAP to Non-GAAP Data: Free Cash Flows
Reconciliations of GAAP to Non-GAAP Data Cash from Operations to Free Cash Flows (in millions) Three Months Ended April 30, 2025 2024 Net cash provided by operating activities $ 457 $ 372 Less: Capital expenditures (36) (81) Free cash flows $ 421 $ 291
Slide 19: Supplemental Financial Information
Supplemental Financial Information Three Months Ended April 30, (in millions) 2025 2024 Share-based compensation expense (1) Costs and expenses: Costs of subscription services $ 42 $ 38 Costs of professional services 30 31 Product development 183 173 Sales and marketing 92 72 General and administrat
Slide 20: Supplemental Financial Information (cont'd)
Supplemental Financial Information (cont’d) Three Months Ended April 30, (in millions) 2025 2024 Acquisition-related costs Costs and expenses: Costs of subscription services $ 0 $ 0 Costs of professional services 0 0 Product development 3 1 Sales and marketing 1 0 General and administrative 3 2 Rest
Slide 21: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures To provide investors and others with additional information regarding Workday’s results, the following non-GAAP financial measures are disclosed: non-GAAP operating income, non-GAAP operating margin, non-GAAP diluted net income per share, and free cash flows. Workda
Slide 22: About Non-GAAP Financial Measures (cont'd)
About Non-GAAP Financial Measures (cont’d) • Amortization of acquisition-related intangible assets. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subj
Slide 23: Other Business Metrics
Other Business Metrics Gross Revenue Retention Rate Gross revenue retention rate measures the percentage of recurring revenue retained from existing customers and is calculated by taking total annual recurring revenue (“ARR”) of our customers as of the corresponding prior period-end and comparing th
Slide 24: workday.
workday.