Workday's Q4 2025 Earnings Call: Unpacking Contradictions in AI Monetization and Renewal Strategies

These are the key contradictions discussed in Workday's latest 2025 Q4 earnings call, specifically including: Agent System of Record Investment and Vision, AI Monetization Timing, AI Monetization Strategy, and Renewal Opportunities:



Strong Subscription Revenue Growth:
- Workday reported subscription revenue of $2.040 billion for Q4, up 16%, and $7.718 billion for the full fiscal year, up 17%.
- Growth was driven by favorable linearity of new ACV bookings and strong performance in full suite and financial solutions.

AI and Product Innovation:
- Workday introduced the Agent System of Record, managing AI agents from Workday and third parties, with strong customer interest.
- The uptake of AI SKUs such as Recruiting Agent and Extend Pro doubled over the previous quarter, contributing significantly to growth.

International Performance and Strategic Investments:
- Workday's international revenue in Q4 was $556 million, growing 16%, with notable wins in EMEA, APAC, and Japan.
- The company continues to invest internationally, despite macro headwinds, focusing on strategic markets like EMEA and Japan.

Partner Ecosystem Growth:
- More than 15% of net new ACV was sourced through partners in Q4, up from over 10% last quarter.
- This growth is attributed to collaborations on new lines of business and innovation through partner programs like Workday Wellness.