Financial Data and Key Metrics Changes - Workday reported a 15% growth in subscription revenue, totaling $2.244 billion for Q3 2026, with total revenue reaching $2.432 billion, reflecting a 13% increase [17] - Non-GAAP operating margin stood at 28.5%, with non-GAAP operating income of $692 million [18] - The 12-month subscription revenue backlog (CRPO) increased by 17.6% to $8.21 billion, while total subscription revenue backlog rose 17% to $25.96 billion [18] Business Line Data and Key Metrics Changes - The Human Capital Management (HCM) segment saw new customer additions, including Sunnybrook Health Sciences Center and Fuji Electric, contributing to strong full-suite adoption [6] - More than 75% of core customers are utilizing Workday Illuminate AI, with over 1 billion AI actions executed on the platform this year [7] - AI products contributed over 1.5 points to Annual Recurring Revenue (ARR) growth in Q3 [8] Market Data and Key Metrics Changes - Healthcare became the sixth industry to exceed $1 billion in ARR, with significant wins including Arden Health and Northeast Georgia Medical Center [9] - International revenue totaled $607 million, up 13%, with strong performances across EMEA, APAC, and Japan [17][15] - The U.S. revenue for Q3 was $1.825 billion, reflecting a 12% increase [17] Company Strategy and Development Direction - Workday aims to enhance its AI capabilities through strategic acquisitions, including the recent acquisition of Sana, which will improve user experience and AI integration [12] - The company is focused on expanding into new markets, including the Middle East and India, while also investing in medium enterprises [18] - Workday's vision is to unify HR and finance processes on a single platform, leveraging AI to drive better decision-making and operational efficiency [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum and the ability to achieve financial targets, with a subscription revenue growth forecast of approximately 14% for FY26 [20] - The company anticipates continued growth in AI-driven solutions, with expectations for a subscription revenue CAGR of 12%-15% through FY28 [22] - Management acknowledged some impacts from fiscal funding in the public sector but emphasized strong execution across the portfolio [20] Other Important Information - Workday's operating cash flow for Q3 was $588 million, a 45% increase, and the company ended the quarter with $6.8 billion in cash and marketable securities [18] - The company plans to repurchase an additional $3.6 billion in shares, totaling $5 billion in buybacks [19] Q&A Session Summary Question: Feedback on venture-backed vibe-coding startups - Management noted that while there are challenges with operationalizing these solutions, customers are returning to trusted vendors like Workday for reliable data and security [27][28] Question: Mechanisms to maintain ACV with customers facing layoffs - Management highlighted that customer headcount is still growing year-over-year, and they are focused on selling additional solutions to existing customers to offset any potential impacts from layoffs [30] Question: Early success with AI solutions - Management reported that AI solutions are contributing significantly to ARR growth, with 75% of new sales including AI products [32][33] Question: Feedback on Paradox and Sana acquisitions - Early feedback from customers has been very positive, indicating strong demand for both AI solutions and the integration of these acquisitions into the Workday ecosystem [36][38] Question: International growth performance - Management expressed satisfaction with international performance across EMEA, APAC, and Japan, attributing success to product localization and strong partner networks [60][61]

Market Overview - The trading day ended with the Dow Jones Industrial Average up more than 600 points, a 1.4% increase, and the S&P 500 rising over 60 points, or 0.9% [6] - The Nasdaq composite finished higher by about 0.7%, with small and mid-cap stocks, particularly the Russell 2000, outperforming, up 2% [7] - Overall, 426 names in the S&P 500 gained ground, while only 74 declined, indicating strong market breadth [8] Company Performance - Alphabet shares have seen a significant year-to-date gain of approximately 70%, outperforming many competitors [5] - Autodesk reported a third-quarter EPS of $2.67, beating expectations of $2.50, with net revenue of $1.85 billion, slightly above the forecast of $1.81 billion [11] - Workday's after-hours share price increased by about 7% after it raised its full-year subscription revenue forecast, projecting fourth-quarter subscription revenue of $2.36 billion, above the estimate of $2.35 billion [13] - NetApp shares surged by 4% in after-hours trading after the company boosted its fiscal year adjusted EPS forecast and reported third-quarter net revenue expectations of $1.77 billion, exceeding estimates [15] - Urban Outfitters saw a significant increase in share price, up 9% in regular trading and 16% in after-hours, with third-quarter comp retail segment sales up 8%, surpassing the 5% estimate [25] Sector Insights - The technology sector experienced mixed results, with Alphabet hitting an all-time high while Nvidia shares fell by 2.6% [9][20] - Retailers showed strong performance, with Abercrombie and Fitch gaining about 36-37% after raising its 2026 net sales and EPS guidance [17] - Dell raised its full-year adjusted EPS outlook to $9.92, up from $9.55, and increased revenue guidance to a range of $11.2 billion to $12.2 billion [22][24]

Core Insights - Workday's shares fell over 5% in extended trading after the company provided quarterly margin guidance below Wall Street expectations [1] - The company forecasted a fourth-quarter adjusted operating margin of at least 28.5% and $2.355 billion in subscription revenue, slightly above the consensus for revenue but below margin expectations [1] Financial Performance - Workday's revenue grew approximately 13% year over year for the quarter ending October 31, with net income rising to $252 million, or 94 cents per share, compared to $193 million, or 72 cents per share, in the same quarter last year [2] - Subscription revenue for the third quarter was $2.24 billion, with an adjusted operating margin of 28.5%, aligning with analyst expectations for revenue but slightly exceeding margin expectations [2] Strategic Developments - During the fiscal third quarter, Workday announced the introduction of artificial intelligence agents for employee performance analysis and financial health testing, and plans to acquire AI and learning software startup Sana for $1.1 billion [3] - Activist investor Elliott Management disclosed a stake in Workday valued at over $2 billion [3] Market Context - Workday's stock has declined by 9% in 2025 amid concerns regarding the impact of generative AI tools on the growth prospects of cloud software companies, while the Nasdaq Composite index has increased by 19% [4] - The company's adjusted earnings per share were reported at $2.32, surpassing the expected $2.18, and revenue was $2.43 billion, slightly above the anticipated $2.42 billion [4]

The human-resources software company posted a quarterly profit of $252 million, compared with $193 million a year earlier. ...

Investor Presentation Q3 FY26 This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancements or upgrades to our existing applications or plans for future applications; any projections of revenues, gross margins, earnings, or other financial items; and any statements of expectation or belief. Forwar ...

Core Insights - Workday, Inc. reported third-quarter earnings that exceeded analyst expectations, with earnings per share at $2.32 compared to the estimated $2.18, and revenue of $2.43 billion surpassing the $2.42 billion forecast [2][3] Financial Performance - Quarterly earnings per share were $2.32, beating the analyst estimate of $2.18 [2] - Quarterly revenue reached $2.43 billion, slightly above the Street estimate of $2.42 billion [2] - Subscription revenues amounted to $2.24 billion, reflecting a 14.6% increase year-over-year [5] - The 12-month subscription revenue backlog was $8.21 billion, up 17.6% from the same period last year [5] - Total subscription revenue backlog increased to $25.96 billion, marking a 17% year-over-year growth [5] Strategic Commentary - CEO Carl Eschenbach highlighted the strength and diversity of Workday's business, emphasizing the momentum in their AI portfolio [3] - The company aims to unify people, money, and AI agents on a single platform to enhance customer capabilities and drive meaningful results [4]

Core Points - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper functionality [1] - The presence of ad-blockers can lead to blocked access, necessitating their disabling for content access [1]

Exhibit 99.1 Workday Announces Fiscal 2026 Third Quarter Financial Results Fiscal Third Quarter Total Revenues of $2.432 Billion, Up 12.6% Year-Over-Year Subscription Revenues of $2.244 Billion, Up 14.6% Year-Over-Year PLEASANTON, Calif., November 25, 2025 – Workday, Inc. (NASDAQ: WDAY), the enterprise AI platform for managing people, money, and agents, today announced results for the fiscal 2026 third quarter ended October 31, 2025. Fiscal 2026 Third Quarter Results Comments on the News "Workday delivered ...

Core Insights - Workday reported total revenues of $2.432 billion for the fiscal 2026 third quarter, representing a year-over-year increase of 12.6% [7] - Subscription revenues reached $2.244 billion, up 14.6% year-over-year [7] - The company anticipates fiscal 2026 subscription revenue of $8.828 billion, reflecting a growth of 14% [3] Financial Performance - Operating income for the third quarter was $259 million, or 10.7% of revenues, compared to $165 million, or 7.6% of revenues, in the same period last year [7] - Non-GAAP operating income was $692 million, or 28.5% of revenues, compared to $569 million, or 26.3% of revenues, in the same period last year [7] - Diluted net income per share was $0.94, up from $0.72 in the third quarter of fiscal 2025 [7] - Non-GAAP diluted net income per share was $2.32, compared to $1.89 in the same period last year [7] Subscription Backlog - The 12-month subscription revenue backlog was $8.21 billion, an increase of 17.6% year-over-year [7] - Total subscription revenue backlog reached $25.96 billion, increasing 17.0% year-over-year [7] Cash Flow and Share Repurchase - Operating cash flows were $588 million, compared to $406 million in the same period last year [7] - Free cash flows amounted to $550 million, up from $359 million in the same period last year [7] - Workday repurchased approximately 3.4 million shares of Class A common stock for $803 million as part of its share repurchase programs [7] Business Developments - Workday announced a new AI Centre of Excellence in Dublin, Ireland, with a three-year investment of €175 million and the creation of 200 specialized AI roles [5] - The company welcomed new customers and expanded existing relationships, including notable wins in the healthcare sector [8] - Workday unveiled several new innovations at its annual customer conference, including new AI agents and a new data layer [8] Market Position - Workday was named a Leader in the 2025 Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises, Cloud ERP for Service-Centric Enterprises, and Cloud ERP Finance [8]

Earnings Results - Workday, Inc. is set to release its third-quarter earnings results on November 25, with expected earnings of $2.17 per share, an increase from $1.89 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $2.42 billion, compared to $2.16 billion a year earlier [1] Acquisition Announcement - On November 19, Workday announced a definitive agreement to acquire Pipedream, an integration platform that connects over 3,000 business applications [2] - Following the announcement, Workday shares rose by 0.7% to close at $226.64 [2] Analyst Ratings - Citigroup analyst Steven Enders maintained a Neutral rating and increased the price target from $260 to $261 [4] - DA Davidson analyst Gil Luria also maintained a Neutral rating, raising the price target from $225 to $260 [4] - Barclays analyst Raimo Lenschow maintained an Overweight rating and increased the price target from $285 to $288 [4] - TD Cowen analyst J. Derrick Wood maintained a Buy rating but cut the price target from $310 to $290 [4] - Piper Sandler analyst Brent Bracelin upgraded the stock from Underweight to Neutral and raised the price target from $220 to $235 [4]