Slides
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WELCOME TO
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Vice President, Investor Relations
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Re-founding MomentAneel Bhusri Reimagining WorkJoel HellermarkCharlotte McLachlan Financial FrameworkZane RoweInnovating to WinGerrit Kazmaier Accelerating the PlatformGabe Monroy Capturing the AI OpportunityRob Enslin Agenda
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This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding our strategies or plans for future operations; growth and opportunities; new features, enhancements, or upgrades to our existing applications or plans for future applications; projections of revenues, gross margins, earnings, or other financial items; and any statements of expectation or belief. Forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements, and therefore you should not rely on any forward-looking statements that we may make. Further information on risks that could affect Workday’s results is included in our filings with the Securities and Exchange Commission which are available on the Workday investor relations webpage: www.workday.com/en-us/company/about-workday/investor-relations/overview.html.Workday assumes no obligation for, and does not intend to update, any forward-looking statements, except as required by law. Any unreleased services, features, functionality, or enhancements referenced in any Workday document, roadmap, blog, our website, press release, or public statement that are not currently available are subject to change at Workday’s discretion and may not be delivered as planned or at all.Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.Use of Non-GAAP Financial MeasuresThe Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable to predict with reasonable certainty the amount and timing of adjustments that are used to calculate this non-GAAP financial measure, particularly related to stock-based compensation and its related tax effects, acquisition-related costs, and restructuring costs. In addition to financial results presented in accordance with generally accepted accounting principles (GAAP), this presentation includes certain non-GAAP financial measures of performance. A reconciliation of the non-GAAP operating margin to GAAP operating margin is contained in the Appendix to this presentation. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Refer to the Appendix for an explanation of non-GAAP financial measures, and why management believes these measures provide useful information.
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Co-Founder, CEO and Chair
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+ Our Re-founding One Data Model.One Security Model.One Version.Years of trustTransactionsUsers under contract20~1.4T80MMore than a decade of AI investment 1 1.Reflects transaction volume on the Workday Platform for FY26.2.As of 7.31.26. 2
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Our Re-founding We provide the deterministic rails AI needs in the enterprise
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Our Re-founding
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We’re Doubling Down On What Matters MostHow We’re Operating Differently
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We’re Doubling Down On What Matters Most We’re Moving Much Faster How We’re Operating Differently
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We’re Doubling Down On What Matters Most We’re Moving Much Faster We’re Making Ownership Much Clearer How We’re Operating Differently
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Five Ways We’re Monetizing with Workday APIsWorkday Data CloudWorkday Extend AIAgents Core Applications
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Five Ways We’re Monetizing with Workday APIsWorkday Data CloudWorkday Extend AIAgents Core Applications
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Chief Financial Officer
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AI and Platform Accelerate TAM ExpansionHCM and FINS core TAM expansion driven by innovation and ongoing market growth Emerging products drive new market opportunities TAM estimate based on Workday and third-party data as of 10.13.26. Compares to prior TAM estimate of $188B as of 9.16.25. Sana, Workday Data Cloud, and agent-ready tools contribute to accelerating AI and platform TAM growthHCM and FINS TAM$176BAI and Platform$100B
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AI Momentum over the Last YearARR from Agentic AI, representing more than 3x increase from last year Q2’26Q2’27 $750M $375M $0 ~$600M $100M+ARR contribution from each of Extend AI, HiredScore, and Paradox ~300Customers have signed our Flex Credit agreement Agentic AI1 ARR $ 1.Agentic AI includes HiredScore, Evisort, Paradox, Sana Learn, Sana Enterprise, Extend AI, and Flex Credits.
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AI is Driving Growth in Our Customer BaseMix of TTM subscription revenue growth from customer base1 FY’28EFY’26FY’27E AICore Incremental Customer Base ARR $~60% ~70%Expected AI contribution to incremental customer base ARRin FY282 ~12%Average ARR uplift from AI sold to existing customers3 1.Represents the increase in subscription services revenues over the last twelve months ended 7.31.26 attributable to expansion within our customers that existed as of 7.31.25.2.Represents the expected incremental ARR from Agentic AI sold to our customer base relative to our total customer base incremental ARR that we expect in FY28.3.Represents the average uplift in ARR from AI for the set of 850+ existing customers that have purchased 1 or more Agentic AI SKUs over the last 12 months ended 7.31.26. $750M $375M $0
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Durable New Customer Opportunity FY’28EFY’26FY’27E $500M $250M $0 Mix of TTM subscription revenue growth from new customers1 ~40% US LEUS ME + Int’l >50%New customer deals that include AI3 Incremental New Customer ARR $ 1.Represents the increase in subscription services revenues over the last twelve months ended 7.31.26 attributable to customers added after 7.31.25.2.Represents the expected incremental ARR from new medium enterprise customers in the U.S. and international customers relative to our total incremental ARR from new customers that we expect in FY28.3.Represents the percentage of core net new deals that included one or more Agentic AI SKUs for the quarter ended 7.31.26. >75%Expected contribution to incremental new customer ARR from US ME and Int’l in FY282
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Investing in Growth While Driving Margin Expansion Sustaining focused investments across our AI agents and platform development, go-to-market and customer adoption journey Driving growth while maintaining relatively flat aggregate headcount levels in FY27 Planning to deliver operating margin expansion in FY28 through internal AI usage and efficiencies across people/process/systems
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Target Financial FrameworkFY’27EFY’26FY’28E Share Repurchases Non-GAAP Operating Margin30%31%33%+ Subscription Revenue$8.8B~$9.9B1 ~$11.0B14%13%~11%YoY Growth SBC % Revenue17%16%~15%Non-GAAP Operating Margin Including SBC212%14%17%+ FCF/Share ~$13~$15$4B3authorized$5B+through FY27 1.Represents the midpoint of our guidance as provided on our Q2 FY27 Earnings Call on 8.27.26.2.Includes Share-based compensation expense and employer payroll tax-related items on employee stock transactions.3.Represents remaining authorization for repurchases through open ended plan announced on 8.27.26.Please refer to Appendix – About Non-GAAP Measures for further details.
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President, Product and Technology
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AI as an Engine for Growth Business GrowthHuman Progress
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AI is Reshaping Jobs More job postings for forward deployed engineers in just one year
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A Year of AI ProgressCompletely reinvent the core work experience
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A Year of AI ProgressCompletely reinvent the core work experience Open the Platform
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A Year of AI Progress Open the Platform Agentic AI and Finance Completely reinvent the core work experience
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Our Guiding Principles for AIAI must be trustedAI must redesign work, not just assist itAI must be a growth driver that puts talent and human capability at the center
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Our Guiding Principles for AI Work IntelligenceAI AutopilotsTrusted Agent Platform
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Our Guiding Principles for AI
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World Model of WorkHigher accuracyContext advantageDeterministic executionWrite path advantage Real-time flow of workBusiness process advantage
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HCM and FINS TAM$176BAI and Platform$100B$276BTAM estimate based on Workday and third-party data as of 10.13.26. Compares to prior TAM estimate of $188B as of 9.16.25. AI and Platform Accelerate TAM Expansion…
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Agentic AI Unlocks New Work Agentic Opportunity $176B$100B$276B
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AI Unlocks Strategic Work and Enterprise Value Employee ServiceStrategic WorkTalent AcquisitionFinancialControls
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Three Paths to Access Workday AIUse the full, native Sana Workspace with a rich interface (the platform supports this) Run agents within Workday – your agents and our agents – in the AI experience of your choice Build your own agents connected to Workday, with our agent-ready tools Path 1 Path 2 Path 3
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Chief AI Officer Principal, Product Marketing
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AnticipateAdviseAct Orchestrating systems, agents, and apps to get the job done Sana Works Around the Clock
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5,600+RecruitingLearningPayroll PlanningProcurementCore Finance Customers Talent Optimization Expenses 4,000+4,600+4,800+ 7,000+2,100+2,700+2,800+CustomersCustomersCustomers CustomersCustomersCustomersCustomers Customer and User Counts are as of 7.31.26. Millions of Opportunities for Transformation
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We Build Where Workday Has the Strongest Right to Win Learning and development Workforce and financial decisionTalent acquisitionOnboarding and employee service Close, controls and audit Workday understands the people, money and processes behind the work.Differentiated Context The workflow contains significant analysis, coordination or exception management.High-value Work at Scale Our AI can improve capacity, speed, cost or decision qualityMeasurable Customer Outcomes
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Chief Technology Officer
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From a SystemYou Log Into
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EcosystemDeveloper Platform • MarketplaceLawful by Default Backed by Builders Open by Design Data CloudAgent-Ready Tools for Data Context LayerLive Data QueryOpen Data Core Agent HarnessContext • Memory • Guardrails• Grounded Reasoning Agent GovernanceSecurity • LifecyclePassport • AnalyticsExtend AIDeveloper AgentAgent-Ready Tools Custom Agents Workday’s Trusted Agent Platform
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EcosystemDeveloper Platform • MarketplaceLawful by Default Backed by Builders Open by Design Data CloudAgent-Ready Tools for Data Context LayerLive Data QueryOpen Data Core Agent HarnessContext • Memory • Guardrails• Grounded Reasoning Agent GovernanceSecurity • LifecyclePassport • AnalyticsExtend AIDeveloper AgentAgent-Ready Tools Custom Agents Workday’s Trusted Agent Platform
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Workday is Now Fully Headless via the Trusted Agent Platform
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MayaEngineering Director, HR IT team
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LawlessLawful
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Joining enterprise data Analytics at scaleRetiring RaaS reports Great for…Agents that act on behalf of peopleNot Great for…Your data made it into the lake.Your rules didn’t. DATA LAKES
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LawlessLawful
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Starting today, any agent you build gets WORKDAY HEADLESS – THE ENTERPRISE ADVANTAGE Skills & CertificationsPerformanceHistoryReal Labor CostsZero Data Leakage
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Workday’s Headless Momentum ~500 Agent Ready tools live | 130+ shipping per month Workday Business Objects | Native Data MCP access
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Workday’s Trusted Agent Platform EcosystemDeveloper Platform • Marketplace Data CloudAgent Harness Extend AIAgent Governance Lawful by Default Backed by Builders Developer AgentAgent-Ready Tools Custom AgentsSecurity • LifecyclePassport • Analytics Context • Memory • Guardrails• Grounded ReasoningAgent-Ready Tools for Data Context LayerLive Data QueryOpen Data Core Open by Design
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Generally AvailableNow OpenDeveloper Platform
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Turning Builders into GrowthScale the EcosystemExpand the MarketplaceDrive Long-Term GrowthGrow toward 100,000 buildersMore monetizable apps and talent to simplify implementationTurn developer adoption into a product-led growth engine
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Workday’s Trusted Agent Platform EcosystemDeveloper Platform • Marketplace Data CloudAgent Harness Extend AIAgent Governance Lawful by DefaultBacked by Builders Developer AgentAgent-Ready Tools Custom AgentsSecurity • LifecyclePassport • Analytics Context • Memory • Guardrails• Grounded ReasoningAgent-Ready Tools for Data Context LayerLive Data QueryOpen Data Core Open by Design
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Generally Available
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New Features in Early Access at Rising Evaluations & TracesConsistent, accurate agents, even as their logic or models change MemoryPicks up right where it left offGuardrailsProtected from attacks and the wrong tone Sovereign RoutingData stays in permitted regions Model ChoiceGoogle, Anthropic, OpenAI, and open models from NVIDIA, Meta, and Mistral AI ContextAgent Context ServiceGrounded Reasoning EARLY ACCESS
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Strengthening Our Enterprise MoatDefensive ArchitecturePlatform StickinessEnterprise Risk MitigationAgents execute within Workday’s business logic and permissionsProtect core HR and Finance while expanding trusted AI adoptionBuilt-in protection against prompt injections, data leaks, and compliance failures
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EcosystemDeveloper Platform • MarketplaceLawful by Default Backed by Builders Open by Design Data CloudAgent-Ready Tools for Data Context LayerLive Data QueryOpen Data Core Agent HarnessContext • Memory • Guardrails• Grounded Reasoning Agent GovernanceSecurity • LifecyclePassport • AnalyticsExtend AIDeveloper AgentAgent-Ready Tools Custom AgentsThird-Party Frameworks Workday’s Trusted Agent Platform GA GA GA EA EADEC
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of Workday customers prefer HR and Identity Governance Access to be one embedded system Workday IGA Concept Survey, n=10 Medium Enterprise, n=11 Large Enterprise+
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President, Chief Commercial Officer
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Building the G2M Machine of the Future Customer Base AI CoEMedium EnterpriseGlobalGrowth
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Accelerating Customer ExpansionCustomer expansion is our largest, fastest route to revenue Significant investment in North America LE coverage model AI is on track to represent >50% of incremental customer base ARR this year1 Customer Base AI Centers of Excellence Medium EnterpriseGlobalGrowth 1.Represents the expected incremental ARR from Agentic AI sold to our customer base relative to our total customer base incremental ARR that we expect in FY27.
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Scaling AI ExpertiseSpecialized CoEs scale growth across Sana, Talent, Platform, and Spend Empowering partners to build differentiated AI offerings on Workday End-to-end GTM expertise and hands-on pilots accelerate AI adoption Customer Base AI Centers of Excellence Medium EnterpriseGlobalGrowth
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Winning in Medium EnterpriseTargeting the 500–3,500 employee sweet spot: net new deal sizes up ~20% YoY1 WorkdayGO in 24+ markets: Q2 volume grew >5x over Q12 Customer Base AI Centers of Excellence Medium EnterpriseGlobalGrowth 1.Represents the increase in average deal size for net new ME customers in the <3,500 employee segment for the first half of FY27 compared with the first half of FY26.2.Represents the increase in the number of WorkdayGO customers signed in Q2'27 compared with Q1’27. ME expansion rates consistent with LE
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Expanding Global ReachAdding capacity in top-performing global markets Scaling VAR reach: 20 partners across 14 countries Entering targeted new markets Customer Base AI Centers of Excellence Medium EnterpriseGlobalGrowth
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Growing Customer Adoption Across Our AI Portfolio ~50Sana Enterprise1 Sana Learn2 Paradox EvisortHiredScoreExtend AI 250+300+450+550+650+CustomersCustomersCustomers CustomersCustomersCustomers Customer counts are as of 7.31.26.1.Includes Sana Lighthouse Customers.2.Includes Sana Learn and Workday Learn Powered by Sana.
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Driving Rapid AI Customer AdoptionWorkday Data Cloud early customer wins Strategic customers co-innovating through Sana Enterprise Lighthouse Early access MCP program customers125+1815+ As of 10.13.26.
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Q2’27Q4’26Q1’27 300 75 0 Flex Credit Customer CountCustomers have signed our Flex Credit Agreement~300 ~200Customers signed Flex Credits in Q2 alone 1 to 3 YearCommitments tied to measurable outcomes 150 225 Flex Credits Momentum is Building
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FY19 $2.8M Landed Core HR, Payroll, Recruiting, Learning, etc. FY24Added Financials, Procurement, Accounting Center, Extend AI, etc. $6.6M FY25Added HiredScore and Journeys, etc. $7.3M FY27Added Flex Credits, etc. $10.2MCustomer ARR Represents a real-life Workday customer in the healthcare industry and their ARR over time. This customer's initial ARR was $2.8M and as of 10.13.26 it has grown to $10.2M. Some products purchased are excluded. Customer Adoption Journey: Healthcare
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FY19 $0.1M Landed Financial PlanningFY24Added Core HR, Talent, Recruiting, Learning, Extend AI, etc. $3.0M FY26Added HiredScore $3.8M FY27Added Paradox $4.2MCustomer ARR Represents a real-life Workday customer in the manufacturing industry and their ARR over time. This customer's initial ARR was $0.1M and as of 10.13.26 it has grown to $4.2M. Some products purchased are excluded. Customer Adoption Journey: Manufacturing
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The Emerging Opportunity with the CIO Workday Data CloudExtend AIMCP /HeadlessSana Enterprise
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Updated Product Attach Rates18%18%24%25%26%27%30% WellnessVN DLYAccount ingCe nte rGl ob al P ay rollCo nnectExt end(excl. Exte ndPro)PeakonAgent ic A IHe lpProjectsProcurement 34%37%40%46%56%64%67%72%78% Pri sm Analyti csCo re F in ancialsExp ensesPlanningLearning ( excl. Sana)PayrollTa le nt O pt im izat ionTim e TrackingRecruiti n g <10%Each Has <5% 1 Denominator on attach rates is inclusive of all Workday core customers as of 7.31.26.1.Agentic AI includes HiredScore, Evisort, Paradox, Sana Learn, Sana Enterprise, Extend AI, and Flex Credits.
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About Non-GAAP Financial MeasuresTo provide investors and others with additional information regarding Workday’s results, the following non-GAAP financial measures are disclosed: non-GAAP operating margin, and non-GAAP operating margin including share-based compensation. Workday has provided a reconciliation of each non-GAAP financial measure used in this presentation to the most directly comparable GAAP financial measure. Non-GAAPoperating margin differs from GAAP in that it excludes share-based compensation expense, employer payrolltax-relateditems on employee stock transactions, amortization expense for acquisition-related intangible assets, acquisition-related costs, and restructuring costs.Workday’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Workday’s financial performance. Management believes these non-GAAP financial measures reflect Workday’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in Workday’s business. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Workday’s operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.Management believes excluding the following items from the GAAP Condensed Consolidated Statements of Operations is useful to investors and others in assessing Workday’s operating performance due to the following factors:•Share-based compensation expense. Share-based compensation primarily consists of non-cash expenses for employee restricted stock units and our employee stock purchase plan. Although share-based compensation is an important aspect of the compensation of our employees and executives, this expense is determined using a number of factors, including our stock price, volatility, and forfeiture rates, that are beyond our control and generally unrelated to operational decisions and performance in any particular period. Further, share-based compensation expense is not reflective of the value ultimately received by the grant recipients.•Employer payroll tax-related items on employee stock transactions. We exclude the employer payroll tax-related items on employee stock transactions in order to show the full effect that excluding share-based compensation expense has on our operating results. Similar to share-based compensation expense, this tax expense is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.
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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 subject to amortization. The amount of purchase price allocated to intangible assets and the term of the related amortization can vary significantly and are unique to each acquisition and thus we do not believe this activity is reflective of our ongoing operations. Although we exclude the amortization of acquisition-related intangible assets from these non-GAAP financial measures, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.•Acquisition-related costs. Acquisition-related costs include direct transaction costs, such as due diligence and advisory fees, and certain compensation and integration-related expenses. We exclude the effects of acquisition-related costs as we believe these transaction-specific expenses are inconsistent in amount and frequency and do not correlate to the operation of our business.•Restructuring costs. Restructuring costs are associated with a formal restructuring plan and are primarily related to workforce reductions, the closure of facilities, and other exit and disposal activities. We exclude these expenses because they are not reflective of ongoing business and operating results.The use of these non-GAAP measures have certain limitations as they do not reflect all items of expense or cash that affect Workday’s operations. Workday compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review Workday’s financial information in its entirety and not rely on a single financial measure.
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Reconciliations of GAAP to Non-GAAP Data 1.Operating margin is calculated using unrounded data.2.Share-based compensation expense in the GAAP to non-GAAP reconciliation table above excludes share-based compensation associated with restructuring activities of $56 million fiscal 2026. This expense is included in Restructuring costs. Year Ended January 31, 2026Non-GAAP operating margin1Operating margin 7.5 %Share-based compensation expense2 16.4 %Employer payroll tax-related items on employee stock transactions0.7 %Amortization of acquisition-related intangible assets1.1 %Acquisition-related costs 0.6 %Restructuring 3.3 %Non-GAAP operating margin 29.6 % Year Ended January 31, 2026Non-GAAP operating margin including share-based compensation1Operating margin 7.5 %Amortization of acquisition-related intangible assets1.1 %Acquisition-related costs 0.6 %Restructuring 3.3 %Non-GAAP operating margin 12.5 %
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Other Business MetricsAnnual Recurring RevenueAnnual recurring revenue (“ARR”) represents the annualized value of active subscription contracts as of the end of each period. Each subscription contract is annualized by dividing the total contract value by the number of days in the contract term and then multiplying by 365. We exclude certain subscription contracts from the calculation, including contracts with terms less than one year that are distinct from our core product offering, such as contracts for tenants which are used for implementation and testing. To the extent that we are negotiating a renewal with a customer after the expiration of the subscription, ARR is only adjusted if the customer churns. We calculate ARR on a constant currency basis using exchange rates set at the beginning of each fiscal year.