Slide 1: Investor Presentation Q3 FY26
Investor Presentation Q3 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 sup
Slide 4: Workday at a Glance
Workday at a Glance Workday at a Glance
Slide 5: Workday by the Numbers
Workday Leading Enterprise AI Platform by the Numbers For Finance, HR, Planning, Spend Management and Analytics $188B 11,000+ Global Customers Market Opportunity1 Operating across 175+ Countries $8.513B 14.5% YoY Growth Serving 65%+ of the Fortune 500 Trailing Twelve Month Subscription Revenues2 Inc
Slide 6: Workday's Open Platform for People, Money, & Agents
Workday’s Open Platform for People, Money, & Agents Financial HCM Sana Management Open Platform Illuminate AI Workday Agent Ecosystem Agent System of Record Agents Gateway Resilient Workday Core Technology Workday Build Marketplace Agent Builder App Builder Developer Enterprise AI Index (Sana) Copil
Slide 7: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $8.828B 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 Q3 FY26 Earnings C
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 carbon solutions to drive meaningful developm
Slide 9: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 10: Q3 FY26 Financial Highlights
Q3 FY26 Financial Highlights Q3 FY26 Results Increase YoY Total Revenues $2.432B 12.6% Subscription Revenues $2.244B 14.6% Total Subscription Revenue Backlog $25.96B 17.0% 12-month Subscription Revenue Backlog $8.21B 17.6% GAAP Operating Margin 10.7% 301 bps Non-GAAP Operating Margin1 28.5% 215 bps
Slide 11: Q3 FY26 Customer Wins and Expansions
Q3 FY26 Customer Wins and Expansions
Slide 12: Recent Business Highlights
Recent Business Highlights • Workday welcomed new customers including County of San Luis Obispo, Fuji Electric Co. Ltd., Hoshino Resorts Inc., Kelly Services, and The Magnum Ice Cream Company, and expanded existing relationships with CommonSpirit Health, Cornell University, DBS Bank, Guardian Life I
Slide 13: Guidance Summary
Guidance Summary Q4 FY26 Quarterly Guidance Increase YoY Total Revenues $2.523B 14% Subscription Revenues $2.355B 15% 12-month Subscription Revenue Backlog n/a 15% - 16% Non-GAAP Operating Margin 28.5%+ 207 bps+ GAAP Operating Margin ~19 points lower than non-GAAP n/a Full Year FY26 Full Year Guidan
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 October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Non-GAAP operating income Operating income $ 259 $ 165 $ 547 $ 340 Share-based compensation expense (1) 376 368 1,185 1,122 E
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 October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Non-GAAP diluted net income per share (3)(4) Diluted net income per share $ 0.94 $ 0.72 $ 2.03 $ 1.61 Share-based co
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: Cash from Operations to Free Cash Flows
Reconciliations of GAAP to Non-GAAP Data Cash from Operations to Free Cash Flows (in millions) Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Net cash provided by operating activities $ 588 $ 406 $ 1,661 $ 1,349 Less: Capital expenditures (38) (47) (102) (183) Free
Slide 19: Supplemental Financial Information
Supplemental Financial Information Three Months Ended October 31, Nine Months Ended October 31, (in millions) 2025 2024 2025 2024 Share-based compensation expense (1) Costs and expenses: Costs of subscription services $ 39 $ 35 $ 120 $ 108 Costs of professional services 27 28 84 86 Product developme
Slide 20: Supplemental Financial Information (cont'd)
Supplemental Financial Information (cont’d) Three Months Ended October 31, Nine Months Ended October 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 6 3 14 8
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. Workday
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.