Strong Subscription Revenue Growth
Workday reported a 13% growth in subscription revenue, reaching $2.059 billion, which is in line with their guidance for the fiscal year.
Successful AI Product Adoption
New ACV across AI products more than doubled year-over-year, with around 25% of customer expansions including at least one AI product.
Robust Financials Performance
Non-GAAP operating margin was reported at 30%, exceeding expectations due to moderated headcount growth and revenue outperformance.
Significant New Customer Wins
Established new HCM relationships with major companies, including United Airlines, Pilot Travel Centers, and Mutual of Omaha Insurance Company.
Expansive Partner Ecosystem
Partners contributed more than 20% to net new ACV, and 25 new partner apps were added to the Workday marketplace.
Diverse Industry Growth
Five industries exceeded $1 billion in annual recurring revenue, including Manufacturing, Tech, Media, Financial Services, Retail and Hospitality, and Professional and Business Services.
Increased Federal Sector Engagement
Federal forum attendance was up 65%, highlighting successful engagement with senior government leaders.
Positive Cash Flow and Share Buyback Authorization
Operating cash flow was $457 million, and the board approved a new $1 billion open-ended buyback authorization.