Subscription Revenue

Q3 FY 2026

$2.16 billion, 13% growth " "

$2.235 billion, 14% growth "

raised

Professional Services Revenue

Q3 FY 2026

$180 million "

$180 million "

no change

Non-GAAP Operating Margin

Q3 FY 2026

28% "

28% "

no change

GAAP Operating Margin

Q3 FY 2026

20 to 21 percentage points lower "

approximately 17-21 points lower "

lowered

CRPO Growth

Q3 FY 2026

15% to 16%, including 1 percentage point from tenant contracts " "

between 15-16% "

no change

Subscription Revenue

FY 2026

$8.8 billion " "

$8.815 billion, 14% growth "

raised

Professional Services Revenue

FY 2026

$700 million "

$700 million "

no change

Non-GAAP Operating Margin

FY 2026

28.5% "

29% "

raised

GAAP Operating Margin

FY 2026

20 to 21 percentage points lower "

approximately 17-21 points lower "

lowered

Capital Expenditures

FY 2026

$250 million "

$200 million "

lowered

Operating Cash Flow

FY 2026

$2.75 billion "

$2.85 billion "

raised

Non-GAAP Tax Rate

FY 2026

19% "

19% "

no change

Consistent AI Adoption & Innovation

Q1: Emphasized 25% of customer expansions involved AI and 100% YoY growth in net new AI SKUs. " " Q3: Highlighted 30% of expansions with AI solutions and unveiled Illuminate. " " Q4: Focused on AI’s ROI with new agents and strong ACV growth. " "

In Q2, Workday reinforced its leadership with over 70% of core customers using Workday Illuminate, 30% of deals including AI products, and strategic acquisitions like Paradox to enhance its AI suite. " " " "

Recurring emphasis with increased integration of strategic acquisitions and a stronger message of customer ROI.

Macroeconomic and Currency Headwinds

Q1: Monitored headwinds in SLED and international markets with limited impact. " " " Q3: Only hinted at increased deal scrutiny globally. " " Q4: Noted a $20M FX headwind and challenges in Europe despite solid U.K. and Germany wins. " " "

Q2 highlighted ongoing monitoring of international markets with satisfaction in Europe and noted headwinds in the SLED segment due to funding uncertainties, maintaining a balanced view amid macro challenges. "

Consistent monitoring with stable sentiment in Europe and emerging funding challenges in SLED, reflecting cautious but positive outlook.

International Expansion and Government Market Opportunities

Q1: Reported strong wins in EMEA, APAC and significant federal focus with increased engagement. " " " " Q3: Noted strategic partnerships and major wins in Europe and APAC, plus a federal government focus. " " " Q4: Emphasized growth in Europe and federal deals with DOE and DIA. " " " "

Q2 detailed robust international growth with key wins in EMEA, a first deal in Vietnam, and marked the launch of Workday Government to serve U.S. agencies, highlighting both market expansions and dedicated government initiatives. " " "

Recurring focus with an added strategic layer in government markets via a dedicated subsidiary and continued international wins, indicating deeper market penetration.

Partner Ecosystem Growth

Q1: Noted a 20% growth in partner impact and strong marketplace momentum. " " Q3: Reported 5x growth in the partner ecosystem and over 10% net new ACV sourced from partners. " Q4: Emphasized growing partner contributions with increased ACV and new strategic collaborations. " "

In Q2, partners contributed over 20% of net new ACV, with innovation through new partnerships like DailyPay and expansion of initiatives such as Workday Wellness, reinforcing the ecosystem’s critical role. " "

Sustained robust growth with an increasing share of business driven by partners, underlining their expanding strategic importance.

Acquisition Integration and Ecosystem Expansion

Q1: Highlighted Extend and strategic acquisitions to boost platform and ecosystem capabilities. " " Q3: Focused on ecosystem expansion via partnerships and platform programs, with less emphasis on acquisitions. " Q4: Centered more on partner-led ecosystem expansion with limited acquisition discussion. "

Q2 reintroduced a clear focus on acquisition integration by announcing Paradox and Flowwise to enhance their AI talent suite while also expanding partner-driven ecosystem initiatives. " " "

Renewed emphasis on acquisitions to bolster AI capabilities, marking a shift from a predominantly partner-driven narrative to a blended strategy incorporating strategic integrations.

Expansion into Medium Enterprise Markets (Workday Go)

Q1: Introduced Workday Go for medium enterprises with clearer pricing, packaging and faster deployment (60-day implementations). " Q3 & Q4: No mention in Q3 and Q4.

Q2 reiterated its focus on the medium enterprise segment with Workday Go, highlighting strong momentum with full-suite purchases and a seasoned leader driving global expansion in this segment. " "

An emerging emphasis on a new market segment, with Workday Go transitioning from a recent introduction in Q1 to a more detailed and bolstered strategy in Q2.

Financial Performance Stability and Revenue Recognition Variability

Q1: Reported 13% subscription growth, high retention at 98%, and noted variability due to tenant contracts. " " Q3: Achieved 16% growth, strong margins and consistency despite timing issues from strategic deals. " " " " Q4: Demonstrated 15–16% growth with early renewals and noted FX impacts. " "

Q2 showcased strong financial performance with 14% subscription growth, solid margins, robust backlog growth (up to 18%) and noted revenue variability mainly from early renewals and strategic acquisitions. " " "

Consistently stable performance with minor expected variability; sentiment remains positive with robust growth and retention across all periods.

Competitive Threats from AI Startups

Q1 & Q3: No specific discussion was made. Q4: Indirectly mentioned in the context of AI strategy and innovation focus. " " "

Q2 directly addressed these threats, with the CEO calling the AI startup disruption narrative “completely overblown” and emphasizing Workday’s entrenched market position and customer trust. "

A new explicit discussion in Q2; previous periods were silent or indirect. The sentiment is dismissive of the threat, showing increased confidence in Workday’s AI leadership.

Customer Renewal and Upselling Challenges

Q1: Indicated 25–30% of expansions involved AI products with strong retention at 98%. " " " Q3: Emphasized healthy renewal rates and significant upsell through AI, reporting 98% gross retention and robust customer satisfaction. " " " Q4: Highlighted strong renewal visibility and proactive upselling, with over 30% expansions involving AI. " "

Q2 focused on early renewals driven by customer demand for new AI solutions, with renewals surpassing expectations and reflecting robust customer confidence. "

A consistently positive trend with high renewal rates and effective upselling, now reinforced by strong early renewal activity driven by customer-led demand.

Operating Cash Flow and Pipeline Stability Concerns

Q1: Reported strong cash flow with a 23% YoY increase and stable CRPO growth despite some macro monitoring. " " Q3: Maintained steady cash flow with some timing variability and expressed strong pipeline for Q4. " " " Q4: Showed strong cash flow, significant backlog growth and addressed FX pressures. " " "

Q2 reaffirmed healthy operating cash flow with 8% YoY growth, robust cash reserves, and a stable pipeline with consistent performance in key markets despite minor headwinds, underscoring execution strength. " " "

A stable trend with strong operating cash flow and a consistent pipeline; the narrative remains focused on efficiency and predictability despite minor external pressures.