Slide 1: Investor Presentation Q1 FY27
Investor Presentation Q1 FY27 Workday Confidential
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
Slide 5: Workday by the Numbers
Workday Leading Enterprise AI Platform by the Numbers For HR, Finance, and IT 11,500+ Global Customers $188B Operating Across 175+ Countries Market Opportunity1 Serving 65%+ of the Fortune 500 $9.128B 14.7% YoY Growth Including 70%+ of the Top 50 Fortune 500 Companies Trailing Twelve Month Subscript
Slide 6: Workday's AI Platform for Work
Workday’s AI Platform for Work Unified & Connected Experience for Work + Agent Management Agent System Visibility and control of all first & third party agents, with provisioning, analytics, and full agent governance & Governance of Record Platform Extensibility Data Workday & Ecosystem Cloud Build Kn
Slide 7: Workday's AI Advantage
Workday’s AI Advantage Higher Deterministic Accuracy Execution Context advantage Write path advantage Gives agents Routes every action through grounded context your configured compliance Real-time Flow of Work Business process advantage Every action is executed as the right person, with the right sco
Slide 8: Driving Clear AI Momentum
Driving Clear AI Momentum New ACV from Agentic AI Expansion Deals Workday Customers >200% >50% >4,000 YoY Growth1 Larger When Using at Least Including Agentic AI1,2 One Organic Agent3 1 For the quarter ended 4.30.2026 2 Represents the increase in average ACV for customer base expansion deals that in
Slide 9: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $9.938B FY27E1,3 16% CAGR Annual Subscription Revenues 30.5% FY27E3 97% Gross Revenue $5.567B FY23 1,040 bps Retention4 Non-GAAP Operating Margin 20.1% FY232 1 CAGR calculation is based on FY23 actual subscription revenue and the mid-point of our FY27 subscription r
Slide 10: Powered by Workday Contract Intelligence Agent
Powered by Workday Contract Intelligence Agent 90,000 contracts analyzed $2.5M+ saved by automating review Thousands of hours saved Powered by Workday Hiredscore AI for Recruiting Agent 100% increase in number of job requisitions closed 77% of nursing requisitions covered by past applicants
Slide 11: Powered by Workday Contract Intelligence Agent
Powered by Workday Contract Intelligence Agent Saved $35M+ by identifying tariff exposure Reduced contract review triggered by new tariff policies from weeks to days Tariff risk now analyzed in ~1 day
Slide 12: Powered by Workday Paradox Candidate Experience Agent
Powered by Workday Paradox Candidate Experience Agent Store leaders save 40,000 hours per week in recruiting tasks 85% of applicants scheduled in less than an hour 2M+ recruiting hours saved annually 7-day time-to-hire reduction
Slide 13: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 14: Q1 FY27 Financial Highlights
Q1 FY27 Financial Highlights Q1 FY27 Quarterly Results Increase YoY Total Revenues $2.542B 13.5% Subscription Revenues $2.354B 14.3% Total Subscription Revenue Backlog $27.294B 10.9% 12-month Subscription Revenue Backlog $8.806B 15.5% GAAP Operating Margin 13.3% 1,154 bps Non-GAAP Operating Margin¹
Slide 15: Q1 FY27 Customer Wins and Expansions
Q1 FY27 Customer Wins and Expansions
Slide 16: Recent Business Highlights
Recent Business Highlights • Workday welcomed new customers including ACHM Hotels by Marriott, Australian Gas Infrastructure Group, Del Monte Fresh Produce Company, Smiths Group, and State of Delaware, and expanded existing relationships with Bank OZK, GE Vernova, and Queensland University of Techno
Slide 17: Guidance Summary
Guidance Summary Q2 FY27 Quarterly Guidance Increase YoY Total Revenues $2.635B 12% Subscription Revenues $2.455B 13% 12-month Subscription Revenue Backlog n/a 13.5% - 14.5% Non-GAAP Operating Margin 30.0% 102 bps GAAP Operating Margin ~19 points lower than non-GAAP n/a Fiscal Year 2027 Full Year Gu
Slide 18: Appendix
Appendix
Slide 19: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except percentages) Three Months Ended April 30, Trailing Twelve Months Ended 2026 2025 April 30, 2026 Non-GAAP operating income Operating income $ 338 $ 39 $ 1,020 Share-based compensation expense (1) 409 417 1,562 Employer payroll tax-related
Slide 20: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except per share data) Three Months Ended April 30, 2026 2025 Non-GAAP net income Net income $ 222 $ 68 Share-based compensation expense (1) 409 417 Employer payroll tax-related items on employee stock transactions 19 27 Amortization of acquisit
Slide 21: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data Year Ended January 31, 2023 Non-GAAP operating margin (1) Operating margin (3.6) % Share-based compensation expense 20.8 % Employer payroll tax-related items on employee stock transactions 0.8 % Amortization of acquisition-related intangible assets 1.4 % Rest
Slide 22: Supplemental Financial Information
Supplemental Financial Information Three Months Ended April 30, (in millions) 2026 2025 Share-based compensation expense (1) Costs and expenses: Costs of subscription services $ 37 $ 42 Costs of professional services 26 30 Product development 184 183 Sales and marketing 90 92 General and administrat
Slide 23: Supplemental Financial Information (cont'd)
Supplemental Financial Information (cont’d) Three Months Ended April 30, (in millions) 2026 2025 Acquisition-related costs Costs and expenses: Costs of subscription services $ 0 $ 0 Costs of professional services 0 0 Product development 2 3 Sales and marketing 0 1 General and administrative 5 3 Rest
Slide 24: 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 net income, non-GAAP diluted net income per share, and fre
Slide 25: 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 26: Other Business Metrics / Gartner Disclaimer
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 27: Workday
workday