Financial Data and Key Metrics Changes - Workday reported Q4 subscription revenue of $2.040 billion, reflecting a 16% increase year-over-year, and full-year FY '25 subscription revenue of $7.718 billion, up 17% [36][37] - Non-GAAP operating income for Q4 was $584 million, with a non-GAAP operating margin of 26.4%, while full-year non-GAAP operating income was $2.19 billion, representing a margin of 25.9% [39] - Total revenue for Q4 was $2.21 billion, a 15% increase, and for the full year, total revenue was $8.45 billion, up 16% [37][39] Business Line Data and Key Metrics Changes - Workday's core HCM and Financials customers exceeded 6,100, with over 2,000 leveraging the full suite [15] - More than 30% of new business in Q4 was full suite, and this number increased to 50% in focus industries like SLED and healthcare [15][135] - AI solutions saw significant growth, with new ACV from AI SKUs doubling quarter-over-quarter [18][66] Market Data and Key Metrics Changes - U.S. revenue in Q4 totaled $1.66 billion, up 15%, while international revenue was $556 million, growing 16% [37] - The DACH region showed strong performance with new relationships formed with major companies like Bayer and Henkel [29][90] - In APAC, significant wins included Binance and JINGDONG, with ongoing efforts to expand in Japan [30] Company Strategy and Development Direction - Workday is focusing on AI integration across its platform, with the launch of the Agent System of Record to manage AI agents [9][25] - The company aims to leverage its strong customer base and expand its offerings in federal government and higher education sectors [14][115] - Continued investment in international markets and partnerships is a priority, with a focus on enhancing go-to-market strategies [27][150] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the renewal opportunities and the health of the customer base, emphasizing proactive selling into existing accounts [62][66] - The company anticipates FY '26 subscription revenue of approximately $8.8 billion, reflecting a growth of 14% [42] - Management acknowledged macroeconomic challenges but highlighted strong underlying business momentum and customer demand [29][92] Other Important Information - Workday's headcount as of January 31 was approximately 20,400, with a planned reduction of about 8% due to restructuring [42] - The company ended the year with $8 billion in cash and marketable securities, indicating strong financial health [41] - Leadership changes include the retirement of Sayan Chakraborty and the appointment of Gerrit Kazmaier as the new President of Product and Technology [32][33] Q&A Session Summary Question: Can you walk us through the vision and investment scale for the agent system of record? - Management confirmed that restructuring savings will be reinvested into the Agent System of Record due to high customer interest [50][53] Question: What is the health of the renewal base as contracts come up for renewal? - Management indicated strong visibility on renewals and ongoing sales into the customer base, with significant uptake in AI products [62][66] Question: Are you expecting contributions from agent revenue in the back half of the year? - Management noted that while agents are not expected to contribute significantly in FY '26, there is strong momentum in AI solutions [78][82] Question: How is the international market performing, particularly in Europe? - Management highlighted strong results in the U.K. and Germany, with plans to continue investing in international markets [90][92] Question: What changes are expected in the go-to-market strategy with new leadership? - Management stated that while there will be no major changes, the new leadership will refine the go-to-market approach to enhance performance [98][99] Question: How are you balancing investments and margin potential? - Management emphasized a balanced approach to investing in AI while maintaining margin growth, aiming for a non-GAAP operating margin of approximately 28% in FY '26 [104][106]