Slide 1: Investor Presentation Q4 FY26
Investor Presentation Q4 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 HR, Finance, Spend Management and Planning $188B 11,500+ Global Customers Market Opportunity1 Operating across 175+ Countries $8.833B 14.5% YoY Growth Serving 65%+ of the Fortune 500 Fiscal 2026 Subscription Revenues Including 70%+ of the top
Slide 6: Meet the Enterprise AI Platform
Meet the Sana Experience Prebuilt Connectors Enterprise Stripe, Hubspot, Sharepoint, Outlook, Google, +100s Agent Ecosystem AI Platform MCP and A2A Workday Agents Sana Agent Builder Pro Sana Agents Partner and 3-P Agents for Work Securely deploy, extend, manage, and measure Agent System of Record ag
Slide 7: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $9.938B FY27E1,3 16% CAGR Annual 97% Gross Revenue Subscription 30.0% Revenues FY27E3 Retention4 $5.567B FY23 990 bps 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 rev
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: Q4 FY26 Financial Highlights
Q4 FY26 Financial Highlights Q4 FY26 Quarterly Results Increase YoY Total Revenues $2.532B 14.5% Subscription Revenues $2.360B 15.7% GAAP Operating Margin 6.9% 347 bps Non-GAAP Operating Margin¹ 30.6% 413 bps Operating Cash Flows $1.278B 14.9% Free Cash Flows¹ $1.218B 18.8% Fiscal Year 2026 Full Yea
Slide 11: Q4 FY26 Customer Wins and Expansions
Q4 FY26 Customer Wins and Expansions
Slide 12: Recent Business Highlights
Recent Business Highlights • Workday co-founder and chair Aneel Bhusri returned as chief executive officer to lead the company’s next chapter. • Workday welcomed new customers including Boston Children’s Hospital, Copenhagen Airports A/S, Fruit of the Loom, Insomnia Cookies, Lavazza, Sargent & Lundy
Slide 13: Guidance Summary
Guidance Summary Q1 FY27 Quarterly Guidance Increase YoY Total Revenues $2.515B 12% Subscription Revenues $2.335B 13% 12-month Subscription Revenue Backlog n/a 14.5% - 15.5% Non-GAAP Operating Margin 30.5% 26 bps GAAP Operating Margin ~19 points lower than non-GAAP n/a Fiscal Year FY27 Full Year Gui
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 January 31, Year Ended January 31, 2026 2025 2026 2025 Non-GAAP operating income Operating income $ 174 $ 75 $ 721 $ 415 Share-based compensation expense (1) 385 389 1,570 1,511 Employer
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 January 31, Year Ended January 31, 2026 2025 2026 2025 Non-GAAP diluted net income per share (2)(3) Diluted net income per share $ 0.55 $ 0.35 $ 2.59 $ 1.95 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, 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 % Amortizatio
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 January 31, Year Ended January 31, 2026 2025 2026 2025 Net cash provided by operating activities $ 1,278 $ 1,113 $ 2,939 $ 2,461 Less: Capital expenditures (60) (87) (162) (269) Free cas
Slide 19: Supplemental Financial Information
Supplemental Financial Information Three Months Ended January 31, Year Ended January 31, (in millions) 2026 2025 2026 2025 Share-based compensation expense (1) Costs and expenses: Costs of subscription services $ 37 $ 37 $ 156 $ 145 Costs of professional services 26 28 111 114 Product development 17
Slide 20: Supplemental Financial Information (cont'd)
Supplemental Financial Information (cont’d) Three Months Ended January 31, Year Ended January 31, (in millions) 2026 2025 2026 2025 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 17 11 Sales
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.