Slide 1: Investor Presentation Q2 FY26
Investor Presentation Q2 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 $8.227B 14.7% YoY Growth Serving 65%+ 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 Integrations Natural Language Unified Partner Experience Interactions Experience Mobile Integrations The Workday Suite HR Finance Planning • Industry Solu
Slide 7: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $8.815B FY26E2 18% CAGR Annual 97% Gross Revenue Subscription 29.0% Revenues FY26E2 Retention3 $4.546B FY22 610 bps Non-GAAP Operating Margin 22.9% FY221 1 Reconciliations of GAAP to Non-GAAP financial data included in the Appendix 2 As provided on Q2 FY26 Earnings
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 residual solutions to drive meaningful development by
Slide 9: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 10: Q2 FY26 Financial Highlights
Q2 FY26 Financial Highlights Q2 FY26 Results Increase (Decrease) YoY Total Revenues $2.348B 12.6% Subscription Revenues $2.169B 14.0% Total Subscription Revenue Backlog $25.37B 17.6% 12-month Subscription Revenue Backlog $7.91B 16.4% GAAP Operating Margin 10.6% 524 bps Non-GAAP Operating Margin1 29.
Slide 11: Q2 FY26 Customer Wins and Expansions
Q2 FY26 Customer Wins and Expansions
Slide 12: Recent Business Highlights
Recent Business Highlights • Workday welcomed new customers including Banamex, Carrefour, Masan Group, Memorial Health, and Red Coats, and expanded existing relationships with Google, Nationwide Insurance, Qantas Airways, Randstad, Tokyo Electron, and University of Virginia. • Workday entered into a
Slide 13: Guidance Summary
Guidance Summary Q3 FY26 Quarterly Guidance Increase (Decrease) YoY Total Revenues $2.415B 12% Subscription Revenues $2.235B 14% 12-month Subscription Revenue Backlog n/a 15% - 16% Non-GAAP Operating Margin 28.0% 168 bps GAAP Operating Margin ~17 points lower than non-GAAP n/a Full Year FY26 Full Ye
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 July 31, Six Months Ended July 31, 2025 2024 2025 2024 Non-GAAP operating income Operating income $ 248 $ 111 $ 287 $ 175 Share-based compensation expense (1) 391 370 809 755 Employer pay
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 July 31, Six Months Ended July 31, 2025 2024 2025 2024 Non-GAAP diluted net income per share (3)(4) Diluted net income per share $ 0.84 $ 0.49 $ 1.09 $ 0.89 Share-based compensat
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
Reconciliations of GAAP to Non-GAAP Data Cash from Operations to Free Cash Flows (in millions) Three Months Ended July 31, Six Months Ended July 31, 2025 2024 2025 2024 Net cash provided by operating activities $ 616 $ 571 $ 1,073 $ 943 Less: Capital expenditures (28) (55) (64) (136) Free cash flows
Slide 19: Supplemental Financial Information
Supplemental Financial Information Three Months Ended July 31, Six Months Ended July 31, (in millions) 2025 2024 2025 2024 Share-based compensation expense (1) Costs and expenses: Costs of subscription services $ 39 $ 35 $ 81 $ 73 Costs of professional services 28 28 58 59 Product development 170 16
Slide 20: Supplemental Financial Information (cont'd)
Supplemental Financial Information (cont’d) Three Months Ended July 31, Six Months Ended July 31, (in millions) 2025 2024 2025 2024 Acquisition-related costs Costs and expenses: Costs of subscription services $ 0 $ 0 $ 0 $ 0 Costs of professional services 0 0 0 0 Product development 4 3 7 5 Sales an
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: Gartner Disclaimer
Gartner Disclaimer Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's resear
Slide 25: workday.
workday.