Market Overview - U.S. stocks traded lower, with the Nasdaq Composite falling more than 1% on Friday, Dow down 0.70% to 41,566.04, NASDAQ down 1.12% to 18,713.37, and S&P 500 down 0.87% to 5,791.25 [1] - Real estate shares fell by 0.1%, while information technology stocks dipped by 1.4% [1] Company Performance - Workday, Inc. (WDAY) shares dipped more than 11% after reporting quarterly earnings of $2.23 per share, beating the analyst consensus estimate of $2.01 by 10.95%. Quarterly revenue was $2.24 billion, exceeding the Street estimate of $2.22 billion. However, Workday projected second-quarter revenue of $2.16 billion, below the $2.34 billion analyst estimate [2] Commodity Market - Oil traded up 0.4% to $61.42, gold up 1.5% at $3,344.90, silver up 0.1% to $33.250, and copper rose 1% to $4.7245 [4] European Market - European shares were lower, with the eurozone's STOXX 600 falling 1.1%, Spain's IBEX 35 Index down 1.5%, London's FTSE 100 down 0.85%, Germany's DAX 40 declining 1.6%, and France's CAC 40 falling 1.9% [5] Asian Market - Asian markets closed mostly higher, with Japan's Nikkei gaining 0.47%, Hong Kong's Hang Seng Index rising 0.24%, China's Shanghai Composite Index falling 0.94%, and India's BSE Sensex gaining 0.95% [6] Stock Movements - Imunon, Inc. (IMNN) shares surged 155% to $1.07 after announcing new data from its Phase 2 OVATION 2 Study of IMNN-001. Powell Max Limited (PMAX) shares rose 84% to $0.5956, and BloomZ Inc. (BLMZ) shares gained 52% to $0.2033 following a business alliance announcement [8] - Conversely, Golden Heaven Group Holdings Ltd. (GDHG) shares dropped 51% to $2.26, and Bicara Therapeutics Inc. (BCAX) shares fell 42% to $9.06 after mixed results from a phase 1/1b trial [8] Housing Market - U.S. sales of new single-family homes climbed by 10.9% from the previous month to an annualized rate of 743,000 units [9]

Group 1: Ross Stores, Inc. - Ross Stores reported quarterly earnings of $1.47 per share, beating the Street estimate of $1.44, with quarterly revenue of $4.99 billion, surpassing the consensus estimate of $4.97 billion [1][2] - The company issued second-quarter GAAP EPS guidance in the range of $1.40 to $1.55, which is below the analyst estimate of $1.65 [2] - Following the guidance, Ross Stores shares fell 11.2% to $135.00 in pre-market trading [2] Group 2: Other Companies - Bicara Therapeutics Inc. shares dipped 20.2% to $12.50 after announcing mixed results from a phase 1/1b trial for ficerafusp alfa [4] - Deckers Outdoor Corporation shares fell 16% to $105.90 after reporting fourth-quarter financial results and expecting first-quarter revenue of $890 million to $910 million, below estimates of $925.86 million [4] - Gyre Therapeutics, Inc. shares fell 14.4% to $9.60 due to a $20.0 million public offering of common stock [4] - Hallador Energy Company shares tumbled 9.7% to $17.00 in pre-market trading [4] - Xerox Holdings Corporation shares dipped 9.6% to $4.62 after reducing its quarterly dividend from $0.125 per share to $0.025 [4] - MINISO Group Holding Limited shares fell 8.5% to $20.30 following third-quarter results [4] - Workday, Inc. shares declined 6.5% to $254.40 after issuing second-quarter sales guidance below estimates [4] - Navitas Semiconductor Corporation shares dipped 6.3% to $4.73 after a significant jump of 164% on Thursday due to collaboration with Nvidia [4]

Market Overview - Market indexes showed resilience against high bond yields, with the 30-year bond yield at +5.05%, the highest in 18 years, but moderated from previous spikes [1] - Major indexes finished flat, with the Dow, S&P 500, and Russell 2000 remaining unchanged, while the Nasdaq closed up +53 points (+0.28%) [2] - Despite being in the red over the past five trading days, the indexes have seen double-digit gains over the past month [2] Quarterly Earnings Summary - **Workday (WDAY)**: Reported Q1 earnings of $2.23 per share on $2.4 billion in sales, beating previous figures of $1.99 per share and $2.22 billion. However, shares fell -5% due to steady guidance and reduced capex spending [3] - **Deckers Outdoor (DECK)**: Earnings of $1.00 per share exceeded the Zacks consensus of 57 cents, with revenues of $1.02 billion surpassing expectations of $988.6 million. Shares dropped -11% due to lower-than-expected guidance for the current quarter and full-year guidance held back due to tariff issues [3] - **Intuit (INTU)**: Surpassed earnings expectations with $11.65 per share against a consensus of $10.89, and revenues of $7.75 billion exceeding the $7.54 billion forecast. Shares rose +5% following a significant increase in next-quarter guidance driven by Credit Karma growth [4] - **Ross Stores (ROST)**: Beat earnings estimates by 4 cents with $1.47 per share on $4.98 billion in revenues, slightly above consensus. Same-store sales were flat but improved from a projected decline. Shares fell -9% due to lower next-quarter earnings guidance attributed to tariff pressures [5] - **AutoDesk (ADSK)**: Reported Q1 earnings of $2.29 per share, beating the anticipated $2.14, with revenues of $1.63 billion slightly above the forecast of $1.61 billion. Shares gained +5% due to positive next-quarter guidance [6]

Core Insights - Workday reported revenue of $2.24 billion for the quarter ended April 2025, reflecting a year-over-year increase of 12.6% and a surprise of +1.10% over the Zacks Consensus Estimate of $2.22 billion [1] - Earnings per share (EPS) for the quarter was $2.23, compared to $1.74 in the same quarter last year, resulting in an EPS surprise of +12.06% against the consensus estimate of $1.99 [1] Financial Performance Metrics - Subscription revenue backlog stood at $24.62 billion, slightly below the estimated $25.32 billion by analysts [4] - Subscription services revenue reached $2.06 billion, exceeding the average estimate of $2.05 billion, marking a year-over-year increase of +13.4% [4] - Professional services revenue was reported at $181 million, surpassing the average estimate of $165.09 million, with a year-over-year change of +3.4% [4] Stock Performance - Workday's shares have returned +19.4% over the past month, outperforming the Zacks S&P 500 composite's +13.4% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Workday's trailing twelve month subscription revenues reached $7.961 billion, demonstrating a year-over-year growth of 15.5%[9] - The trailing twelve month non-GAAP operating income was $2.349 billion, resulting in a 27.0% margin[9] - Operating cash flow for the trailing twelve months amounted to $2.547 billion, achieving a 29.3% margin[9] - In Q1 FY26, total revenues were $2.240 billion, a 12.6% increase year-over-year, with subscription revenues at $2.059 billion, up by 13.4%[22] - Q1 FY26 operating cash flows reached $457 million, a 23.0% increase year-over-year, and free cash flows were $421 million, up by 44.6%[22] Customer and Operational Metrics - Workday serves over 11,000 global customers across 175+ countries, including 60%+ of the Fortune 500[10] - The company has approximately 19,300 employees worldwide, operating in 30+ countries[10] - Total subscription revenue backlog reached $24.62 billion, a 19.1% increase year-over-year, with the 12-month subscription revenue backlog at $7.63 billion, up by 15.6%[22] Future Guidance - Workday projects full year FY26 subscription revenues to be $8.800 billion and a non-GAAP operating margin of 28.5%[13] - The company anticipates Q2 FY26 total revenues of $2.340 billion, a 12% increase year-over-year, and subscription revenues of $2.160 billion, up by 13%[28]

Financial Data and Key Metrics Changes - Workday reported a 13% growth in subscription revenue, totaling $2,059 million for Q1 FY 2026, with total revenue reaching $2,240 million, also up 13% [28][30] - Non-GAAP operating margin for the quarter was 30.2%, while GAAP operating income was impacted by a $166 million restructuring charge, resulting in a GAAP operating income of $39 million [30][31] - The twelve-month subscription revenue backlog (CRPO) increased by 15.6% to $7,630 million, and total subscription revenue backlog rose by 19% to $24,620 million [29][30] Business Line Data and Key Metrics Changes - More than 30% of net new wins in Q1 were full suite, with over 50% in focused industries like healthcare and SLED [11][43] - New ACV from AI products more than doubled year-over-year, with approximately 25% of customer expansions including AI solutions [12][88] - Professional services revenue was $181 million, contributing to the overall revenue growth [28] Market Data and Key Metrics Changes - U.S. revenue in Q1 totaled $1,680 million, up 13%, while international revenue also grew by 13% to $559 million [28][29] - The company saw notable wins in EMEA and APAC, with significant expansions in various sectors including healthcare and manufacturing [24][25] Company Strategy and Development Direction - Workday is focusing on AI integration and innovation, with a strong emphasis on delivering ROI for customers [20][26] - The launch of Workday Go aims to accelerate deployment for medium enterprises, allowing implementations in as little as 30 to 60 days [14][51] - The company is investing heavily in AI and expanding its partner ecosystem to drive growth and innovation [21][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining guidance despite macroeconomic uncertainties, citing strong customer demand and the value proposition of the Workday platform [40][42] - The company is closely monitoring specific markets like SLED and international business for potential impacts from the macro environment [25][108] - Management highlighted the importance of AI in driving customer engagement and future growth, with expectations for continued strong adoption [88][98] Other Important Information - Workday ended the quarter with $8 billion in cash and marketable securities and announced a new $1 billion open-ended buyback authorization [31] - The company is maintaining its FY 2026 operating cash flow outlook of $2,750 million and capital expenditures of approximately $250 million [35] Q&A Session Summary Question: Can you discuss the current macro environment and how it affects guidance? - Management noted that the Workday value proposition remains strong, with customers consolidating on the platform for better ROI and TCO, despite some headwinds in specific industries [40][41] Question: What is the potential impact of Workday Go on medium enterprises? - Workday Go is designed to accelerate deployment and improve pricing and packaging for medium enterprises, allowing for faster implementations [51][52] Question: How is the adoption of Xtend and XtendPro progressing? - Adoption of Xtend and XtendPro is increasing, with significant growth in partner applications and customer customizations [58][60] Question: What are the growth rates for HCM versus Financials? - Both HCM and Financials are performing well, with a strong sales motion for full suite offerings contributing to overall growth [62][64] Question: How is the company approaching capital allocation in the current environment? - The focus remains on organic growth and strategic investments, with a commitment to returning capital to shareholders through buybacks [84][85] Question: What is the outlook for AI product monetization? - Strong adoption of AI solutions is already being seen, with expectations for continued growth and monetization opportunities in the near future [98][99]

Financial Data and Key Metrics Changes - Workday reported a 13% growth in subscription revenue, totaling $2,059 million for Q1 2026, with a non-GAAP operating margin of 30% [6][27] - Total revenue for the quarter reached $2,240 million, also reflecting a 13% increase [27] - The twelve-month subscription revenue backlog (CRPO) was $7,630 million, up 15.6%, while total subscription revenue backlog increased by 19% to $24,620 million [28][29] - Non-GAAP operating income was $677 million, with a GAAP operating income of $39 million impacted by a $166 million restructuring charge [29][30] - Operating cash flow grew by 23% to $457 million [30] Business Line Data and Key Metrics Changes - More than 30% of new wins in Q1 were full suite, with over 50% in focused industries like healthcare [11] - New ACV across AI products more than doubled year over year, with approximately 25% of customer expansions including AI solutions [11][17] - Workday Go was launched to target medium enterprises, enabling faster implementations in as little as 30 to 60 days [12][13] Market Data and Key Metrics Changes - U.S. revenue totaled $1,680 million, up 13%, while international revenue also increased by 13% to $559 million [27][28] - The company saw notable wins in EMEA and APAC, with significant expansions in various sectors [22][23] Company Strategy and Development Direction - Workday's strategy focuses on leveraging AI to drive efficiencies and innovation for customers, positioning itself as a leader in the evolving future of work [25] - The company is investing heavily in AI and expanding its partner ecosystem to enhance its offerings [19][22] - Workday aims to capture growth opportunities in emerging and medium enterprises through initiatives like Workday Go [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in the company's value proposition and customer demand [24][40] - The company reiterated its subscription revenue guidance of $8,800 million for FY 2026, expecting continued growth in the second half of the year [32][44] - Management highlighted strong ROI and total cost of ownership as key selling points for customers navigating economic challenges [110][113] Other Important Information - Workday's AI solutions are seeing strong adoption, with a 100% year-over-year growth in AI-related sales [88][99] - The company has a new $1 billion open-ended buyback authorization, reflecting its commitment to returning capital to shareholders [31][84] Q&A Session Summary Question: Can you discuss the current environment and your confidence in maintaining guidance? - Management noted that the Workday value proposition resonates in both headwinds and tailwinds, with strong ROI driving customer consolidation on the platform [40][44] Question: What impact do you expect from Workday Go on medium enterprises? - Workday Go is designed to accelerate deployment and improve pricing and packaging for medium enterprises, with implementations now possible in as little as 60 days [50][52] Question: How is the adoption of Xtend and XtendPro progressing? - Xtend and XtendPro are seeing increased customer and partner engagement, with significant growth in applications being developed on the Workday platform [57][59] Question: What are the growth rates for HCM versus Financials? - Both HCM and Financials are performing well, with full suite wins being a strong sales motion, particularly in key markets [62][64] Question: How is the company approaching capital allocation in the current environment? - The focus remains on organic growth and strategic investments, with a high bar for any inorganic growth opportunities [83][84] Question: What is the timeline for monetization of AI products? - Strong adoption of AI solutions is already being seen, with significant growth expected as new agents are introduced [98][99]

Core Insights - Workday reported Q1 net revenue of $1.63 billion, exceeding analyst expectations of $1.61 billion [1] - The company maintained its full-year subscription revenue guidance at $8.8 billion, aligning with analyst forecasts [1] - For Q2, Workday anticipates subscription revenue of $2.16 billion, matching analyst expectations [1] - Following the earnings report, Workday's stock fell by 2.34% in after-hours trading [1]

Exhibit 99.1 Workday Announces Fiscal 2026 First Quarter Financial Results Fiscal First Quarter Total Revenues of $2.240 Billion, Up 12.6% Year Over Year Subscription Revenues of $2.059 Billion, Up 13.4% Year Over Year PLEASANTON, Calif., May 22, 2025 – Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people, money, and agents, today announced results for the fiscal 2026 first quarter ended April 30, 2025. Fiscal 2026 First Quarter Results Comments on the News "Workday delivered another solid quar ...

Core Insights - Workday, Inc. reported total revenues of $2.240 billion for the fiscal first quarter of 2026, reflecting a year-over-year increase of 12.6% [1][7] - Subscription revenues reached $2.059 billion, marking a 13.4% increase compared to the same period last year [1][7] - The company reaffirmed its fiscal 2026 subscription revenue guidance of $8.8 billion and increased its non-GAAP operating margin guidance to approximately 28.5% [4] Financial Performance - Operating income for the first quarter was $39 million, or 1.8% of revenues, down from $64 million (3.2% of revenues) in the same quarter last year, impacted by restructuring expenses of $166 million [7][20] - Non-GAAP operating income was $677 million, representing 30.2% of revenues, compared to $515 million (25.9% of revenues) in the prior year [7][26] - Diluted net income per share was $0.25, down from $0.40 in the same quarter last year, while non-GAAP diluted net income per share increased to $2.23 from $1.74 [7][26] Cash Flow and Share Repurchase - Operating cash flows were $457 million, an increase from $372 million in the previous year, while free cash flows rose to $421 million from $291 million [7][29] - Workday repurchased approximately 1.3 million shares of Class A common stock for $293 million and announced a new share repurchase program of up to $1.0 billion [7][8] Strategic Developments - Workday introduced new Illuminate Agents aimed at enhancing hiring processes and improving employee experiences [8] - The company expanded its customer base, welcoming new clients such as Dover Corporation and United Airlines, while also strengthening existing relationships with major companies [8] - Workday was recognized as a leader in the 2025 Gartner Magic Quadrant for Higher Education Student Information System Software as a Service and Talent Acquisition Suites [8]