Slide 1: Investor Presentation Q2 FY27
Investor Presentation Q2 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 180+ Countries Market Opportunity1 Serving 65%+ of the Fortune 500 $9.430B 14.6% YoY Growth Including 75%+ 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 ARR from Agentic AI Workday Customers $100M+ ~$600M >5,500 > 25% of Total >200% YoY Growth1 Using at Least New ACV1 One Organic Agent2 1 For the quarter ended 7.31.2026 2 For the period 5.1.2026-8.15.2026
Slide 9: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $9.945B FY27E1,3 16% CAGR Annual Subscription Revenues 31.0% FY27E3 97% Gross Revenue $5.567B FY23 1,090 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: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 11: Q2 FY27 Financial Highlights
Q2 FY27 Financial Highlights Increase (Decrease) Q2 FY27 Quarterly Results YoY Total Revenues $2.649B 12.8% Subscription Revenues $2.471B 13.9% Total Subscription Revenue Backlog $27.403B 8.0% 12-month Subscription Revenue Backlog $9.034B 14.2% GAAP Operating Margin 11.8% 124 bps Non-GAAP Operating
Slide 12: Q2 FY27 Customer Wins and Expansions
Q2 FY27 Customer Wins and Expansions
Slide 13: Recent Business Highlights
Recent Business Highlights • Workday welcomed new customers including BWX Technologies, Inc., Guess, KPMG LLP, and S-E-B, and expanded existing relationships with Caterpillar, Delivery Hero (Talabat), Lithia & Driveway, Merck & Co., Inc., and Novartis. • Workday announced that its Board of Directors
Slide 14: Guidance Summary
Guidance Summary Q3 FY27 Quarterly Guidance Increase YoY Total Revenues $2.690B 11% Subscription Revenues $2.515B 12% 12-month Subscription Revenue Backlog n/a 11% - 12% Non-GAAP Operating Margin 30.0% 153 bps GAAP Operating Margin ~18 points lower than non-GAAP n/a Fiscal Year 2027 Full Year Guidan
Slide 15: Appendix
Appendix
Slide 16: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except percentages ) Three Months Ended July 31, Six Months Ended July 31, Trailing Twelve Months Ended 2026 2025 2026 2025 July 31, 2026 Non-GAAP operating income Operating income $ 313 $ 248 $ 651 $ 287 $ 1,084 Share-based compensation expense
Slide 17: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except per share data) Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Non-GAAP net income Net income $ 632 $ 228 $ 854 $ 296 Share-based compensation expense (1) 462 391 871 809 Employer payroll tax-related items on em
Slide 18: 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 19: Supplemental Financial Information
Supplemental Financial Information (in millions) Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Share-based compensation expense (1) Costs and expenses: Costs of subscription services $ 44 $ 39 $ 80 $ 81 Costs of professional services 30 28 56 58 Product development 217 17
Slide 20: Supplemental Financial Information (cont'd)
Supplemental Financial Information (cont’d) (in millions) Three Months Ended July 31, Six Months Ended July 31, 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 0 4 2 7 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 net income, non-GAAP diluted net income per share, and fre
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