What is Workday's gross profit margin?

Did Workday beat or miss consensus estimates last quarter?

What does Workday do and what are its main business segments?

What is the market's earnings forecast for Workday next quarter?

What is Workday's latest dividend and current dividend yield?

What factors drove the changes in Workday's revenue and profit?

What guidance did Workday's management provide for the next earnings period?

What were the key takeaways from Workday's earnings call?

- **AI-Driven Growth**: 1.5% ARR from AI solutions (Evisort, Paradox), 75% core customers use AI agents. 
- **Federal Contracts**: DIA $15M Q4, expanding defense/intelligence opportunities. 
- **Workday GO Expansion**: Global Payroll, deployment agent cuts implementation time by 25%. 
- **Buyback Acceleration**: $3.6B through FY27. 
- **Market Penetration**: Healthcare ARR surpasses $1B. 
- **AI Security/Trust**: Workday's data integrity and compliance优势。

**【CEO Summary Section】**
- Q3 subscription revenue grew 15% to $2.244B, with 28.5% non-GAAP operating margin. AI adoption drove 1.5% ARR growth, including Paradox and Sana acquisitions. Key wins in healthcare (e.g., Ardent Health) and public sector (DIA contract). Workday GO expansion with Global Payroll and AI deployment agent reducing implementation time by 25%. Federal contracts (e.g., DIA) and buyback plans ($3.6B through FY27). 

**【CFO Financial Commentary】**
- Q3 subscription revenue $2.244B (+15%), cRPO up 17.6%. FY26 guidance: $8.828B subscription (+14%). Q4 cRPO 15-16%, including Sana and Paradox contributions. Federal contracts (e.g., DIA) add $15M in Q4. Buyback acceleration ($5B total). 

**【Q&A Highlights】**
- AI solutions (Evisort,50% growth, HiredScore 2.5x uplift). Workday GO mid-market expansion. Federal contracts (DIA) and AI security/trust. Paradox as land-and-expand opportunity. 

**【Key Themes】**
- AI-driven growth (1.5% ARR, 75% core customers use AI). Federal contracts (DIA $15M Q4). Workday GO expansion. Buyback acceleration ($3.6B). 

**【Customer & Product Innovation】**
- Workday GO 2.0 with Global Payroll, deployment agent. Sana AI learning/UI platform. Pipedream integration. 

**【Financial Outlook】**
- FY26 subscription +14%, cRPO 15-16% Q4. Sana/Paradox contributions. Federal contracts and buyback plans. 

**【Market Expansion】**
- EMEA, APAC, Japan wins (Bayer,ING Bank). Workday GO mid-market growth. 

**【Risks & Opportunities】**
- Federal funding delays offset by Paradox/Sana growth. Workday GO deployment efficiency. 


Workday, Inc. (WDAY) Q3 2026 Earnings Call Transcript

- **Revenue Growth**: 14% YoY subscription revenue to $2.169B, driven by AI adoption and customer expansions.
- **AI Expansion**: 30% of net new deals included AI products, with 70%+ customers using Workday Illuminate.
- **Strategic Moves**: Acquired Paradox for $15M+ FY26 contribution, launched Workday Government for federal AI opportunities.
- **Financial Strength**: Non-GAAP margin 29%, operating cash flow $616M, $1.2B share buyback authorization.
- **Market Leadership**: 65% of Fortune 500 customers, 70%+ full suite wins in SLED and healthcare, and 100+ apps on Workday Marketplace.

**【CEO Summary Section】**
- **Revenue Growth**: Subscription revenue grew 14% YoY to $2.169 billion, driven by strong AI adoption and customer expansions. Non-GAAP operating margin was 29%.
- **AI Momentum**: 30% of net new deals included AI products, with 70% of customers using Workday Illuminate. AI-related ACV more than doubled YoY.
- **Customer Wins**: Secured major deals with Salesforce, University of Virginia, and Nationwide Insurance. Launched Workday Government to serve U.S. federal agencies.
- **Market Expansion**: Opened new customer experience centers in New York and London. Expanded in India with a local data center and leadership team.
- **Acquisition**: Announced acquisition of Paradox, a conversational AI hiring platform, to enhance talent acquisition suite.

**【CFO Financial Commentary】**
- **Top Line**: Total revenue of $2.348 billion (+13% YoY). U.S. revenue grew 13%, international revenue 11% (including 3ppt impact from partner deployments).
- **Backlog**: 12-month subscription backlog (cRPO) was $7.91 billion (+16.4% YoY), driven by early renewals and new ACV.
- **Cash Flow**: Operating cash flow of $616 million (+8% YoY). Repurchased $299 million in shares, with $1.2 billion remaining under buyback authorization.
- **Guidance Update**: FY26 subscription revenue raised to $8.815 billion (+14%), non-GAAP operating margin increased to 29%.

**【Q&A Highlights】**
- **AI Impact**: CEO dismissed concerns about AI disrupting SaaS, citing Workday's platform advantage and 70%+ customer AI adoption rate.
- **International Growth**: Europe (UK, Germany) and Japan outperformed, with India seeing early momentum post-local data center launch.
- **Paradox Contribution**: Expected to add ~$15 million to FY26 subscription revenue, with potential for higher synergies.
- **Partner Ecosystem**: Partners contributed >20% of net new ACV, with 100+ apps on Workday Marketplace and growing developer community.
- **SLED Challenges**: State/local funding headwinds offset by competitive wins (e.g., State of Rhode Island, University of Virginia).
- **Government Strategy**: Workday Government subsidiary to capitalize on federal AI investment, with DIA contract tracking ahead of schedule.

Workday, Inc. (WDAY) Q2 2025 Earnings Conference Call Transcript

- **Revenue Resilience**: 13% subscription growth driven by AI adoption and WorkdayGO expansion, with non-GAAP margin at 30.2%.
- **AI Breakthrough**: AI product ACV up 100% YoY, 25% of expansions include AI solutions, delivering 70% legal cost savings for customers.
- **Global Expansion**: Five industries exceed $1B ARR, with strong EMEA/APAC growth (e.g., ASML, Swinburne University).
- **Financial Strength**: $457M operating cash flow, $1B buyback authorization, and FY26 margin guidance of 28.5%.
- **Strategic Momentum**: 20% partner-driven ACV, 25 new apps in Built on Workday, and new CTO leading AI innovation.


**【CEO Summary Section】**
- **Revenue Growth**: Subscription revenue increased 13% YoY to $2.059 billion, driven by strong customer adoption across verticals and geographies. Non-GAAP operating margin reached 30.2%, reflecting operational efficiency.
- **AI Innovation**: New AI product ACV grew over 100% YoY, with 25% of customer expansions including AI solutions like Recruiting Agent and Evisort. Agents such as Talent Mobility and ExtendPro are delivering measurable ROI (e.g., Western Union reduced legal spend by 70%).
- **Market Expansion**: WorkdayGO launched for medium enterprises, enabling 30-60 day implementations. Five industries exceeded $1B ARR, including Manufacturing and Tech & Media. International growth remained strong in EMEA (e.g., ASML, Aviva) and APAC (e.g., Swinburne University).
- **Strategic Initiatives**: Partners contributed 20% of net new ACV. Built on Workday program added 25 new apps, with developer community doubling YoY. New CTO Peter Bailis will lead AI/ML innovation.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q1 GAAP net income $39M, non-GAAP EPS $1.08 (vs. $0.98 prior guidance). Operating cash flow $457M (+23% YoY). Total backlog $24.62B (+19% YoY), with cRPO $7.63B (+15.6%).
- **Share Repurchases**: $293M repurchased in Q1, with $509M remaining under prior authorization. New $1B open-ended buyback approved.
- **Guidance**: FY26 subscription revenue target $8.8B, with Q2 expected at $2.16B (+13% YoY). Non-GAAP operating margin guided to 28.5% for FY26, up from 28% in Q1.

**【Q&A Key Themes】**
- **Macro Environment**: SLED and international markets monitored, but no material impact on Q1. Workday's ROI-driven value proposition remains resilient.
- **AI Adoption**: 25% of expansions included AI products, with 100% YoY growth in AI ACV. New agents (e.g., Talent Mobility, Procure-to-Pay) expected to accelerate growth.
- **Cost Management**: Headcount growth moderated, contributing to margin outperformance. Restructuring charges completed, no further charges expected.
- **International Momentum**: EMEA and APAC delivered solid wins (e.g., Decathlon, Mitsubishi Motors). AWS UK cloud deployment supports local customers.
- **ExtendPro Growth**: ExtendPro SKU grew >100% YoY, enabling customers to build custom AI applications on Workday platform.


Workday, Inc. (WDAY) Q1 2026 Earnings Call Transcript

- **Q4 Growth Drivers**: 16% subscription revenue growth fueled by full-suite wins (30% of net-new) and AI SKUs (30% of expansions). 
- **AI Innovation**: Agent System of Record launched to manage digital workforce, with Extend Pro ACV doubling QoQ and Recruiting Agent ACV nearly doubling. 
- **FY26 Outlook**: 14% subscription growth target with 28% non-GAAP margin, despite $20M FX headwind. 
- **Key Wins**: Largest Workday Student deal (270k students), core FINS win with Fortune 500, and Fed momentum at DOE/DIA. 
- **Margin Expansion**: 30%+ of transactions now include AI, enabling consumption-based pricing for Agent System of Record. 
- **International Momentum**: EMEA Q4 strongest in 2 years, APAC wins with Binance and JINGDONG, Japan office opening.

**【CEO Summary Section】**
- Q4 subscription revenue grew 16% YoY to $2.04 billion, driven by strong demand for full-suite solutions (30% of net-new wins) and AI SKUs (30% of expansions included AI products). 
- Launched Agent System of Record to manage human and digital workforces, with early interest from customers and partners to mitigate AI sprawl risks. 
- Expanded into key industries: 
  - SLED: Signed largest Workday Student deal with Minnesota State Colleges (270k students). 
  - Healthcare: Won full-suite deals with North Mississippi Medical Center and UnityPoint Health. 
  - Financial Services: Closed core FINS deal with a Fortune 500 company. 
- AI momentum: Extend Pro new ACV doubled QoQ, Recruiting Agent ACV nearly doubled, and Developer Copilot delivered 50%+ productivity gains.

**【CFO Financial Commentary】**
- FY25 total revenue: $8.45 billion (+16% YoY). Non-GAAP operating margin: 25.9%. 
- Q4 highlights: 
  - Subscription backlog (cRPO): $7.63 billion (+15% YoY). 
  - Gross retention rate: 98%. 
  - Operating cash flow: $2.46 billion (+15% YoY). 
- FY26 guidance: 
  - Subscription revenue: $8.8 billion (+14% YoY). 
  - Non-GAAP operating margin: 28% (up from 25.9% in FY25). 
  - Includes $20M FX headwind and $180M restructuring costs. 
- Share buybacks: $700M in FY25, reducing dilution <1% annually.

**【Q&A Key Themes】**
1. **AI Investment & Margin Expansion**: 
   - 30%+ of Q4 transactions included AI SKUs, up from 20% in Q3. 
   - Agent System of Record will drive new monetization via consumption-based pricing. 
   - FY26 R&D investment to accelerate AI innovation while maintaining 28% margin target. 
2. **International Growth**: 
   - EMEA: U.K. and Germany delivered strongest Q4 performance. 
   - APAC: Wins with Binance, Nine Entertainment, and JINGDONG. 
   - Japan: Osaka office opening to support long-term expansion. 
3. **Federal Government Opportunity**: 
   - Wins at DOE and DIA set foundation for Fed expansion. 
   - Focus on modernizing legacy ERP systems with cloud-based solutions. 
4. **Partnership Strategy**: 
   - 15% of Q4 net new ACV sourced through partners (vs. 10% last quarter). 
   - Workday Wellness signed 5 strategic partners in Q4. 
   - Built on Workday program has 72 partners building apps on platform.

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