Core Insights - Aflac has been named a strategic Workday Wellness partner, allowing integration of its supplemental health products with Workday Wellness to enhance employer benefit offerings and streamline administration [1][2] Company Overview - Aflac is a leading provider of supplemental health insurance in the U.S. and has been recognized for its ethical practices and sustainability efforts, being included in the World's Most Ethical Companies for 19 consecutive years and Fortune's Most Admired Companies for 24 years [5] Partnership Benefits - The partnership with Workday Wellness aims to provide AI-driven recommendations for employers, improving the agility and responsiveness of benefit offerings [2] - Workday Wellness offers real-time insights into employee benefits usage, enhancing administrative efficiency and engagement for both employers and employees [2] Employee Engagement - According to the 2025-2026 Aflac Workforces Report, a significant number of employees desire more information about their benefits, with nearly half not fully understanding their policies, which may lead to underutilization [3] - Aflac emphasizes that better understanding of benefits can increase their usage and appreciation among employees, highlighting the importance of effective communication in employee benefits solutions [4]

Core Insights - Benepass has announced a strategic partnership with Workday to become a Workday Wellness partner for financial benefits, aiming to enhance employee benefits programs through integration with Workday Wellness [1][4] - The partnership will provide employers with tools to measure the effectiveness of their benefits offerings and adapt them to meet employee needs, thereby increasing engagement [2][4] Company Overview - Benepass is a benefits capital management platform that offers flexible benefits through customizable spending and savings accounts, including lifestyle spending accounts, wellness stipends, FSA, and HSA [6] - The platform supports over 400,000 users across more than 80 countries, with over $500 million in employee benefits funded, highlighting its significant market presence [5] Technology and Integration - The integration is powered by Benepass Connect, which standardizes employer eligibility data and syncs it across systems in real time, allowing for seamless coordination with platforms like Workday [3] - This technology eliminates the rigidity of traditional file feeds, enabling a more dynamic and responsive benefits administration process [3] Employee Experience - Employees will have intuitive access to their Benepass benefits directly within Workday, which is expected to drive higher utilization and create a more cohesive wellness experience [4] - The partnership aims to provide personalized and impactful benefits programs that resonate with today's workforce, addressing the demand for flexible and inclusive solutions [4]

Financial Data and Key Metrics Changes - Workday reported a 14% growth in subscription revenue, totaling $2,169 million for Q2 2026, with total revenue reaching $2,348 million, reflecting a 13% increase [28][29] - Non-GAAP operating margin stood at 29%, with non-GAAP operating income of $680 million [30][33] - Cash and marketable securities at the end of the quarter were $8,200 million, with operating cash flow of $616 million, an 8% growth [31][32] Business Line Data and Key Metrics Changes - Approximately 30% of net new deals were full suite offerings, with this number rising to over 50% in sectors like SLED and healthcare [10][12] - More than 70% of core customers are utilizing Workday Illuminate, with over 30% of customer-based deals including AI products [12][15] - The financial services sector saw significant expansions, including new relationships with Nationwide Insurance and others [12][13] Market Data and Key Metrics Changes - U.S. revenue increased by 13% to $1,760 million, while international revenue grew by 11% to $584 million [29] - The twelve-month subscription revenue backlog (CRPO) reached $7,910 million, up 16.4% year-over-year [29][30] - Strong performance was noted in EMEA, particularly in Germany and the UK, with notable wins in APAC, including a deal in Vietnam [24][122] Company Strategy and Development Direction - Workday is focusing on AI-driven solutions and expanding its platform capabilities, including the acquisition of Paradox to enhance its recruiting suite [16][78] - The company is investing in organic innovation and strategic acquisitions to strengthen its market position and deliver greater value to customers [16][21] - Workday Government was launched to cater specifically to the needs of the U.S. government, emphasizing a commitment to modernization and AI integration [14][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum, driven by AI innovation and a unified platform, while acknowledging macroeconomic challenges in certain sectors [25][56] - The company anticipates continued growth in subscription revenue, increasing its FY 2026 guidance to $8,815 million, reflecting a 14% growth [32][34] - Management highlighted the importance of customer trust in navigating AI transitions, positioning Workday as a key partner in this area [100][49] Other Important Information - Workday's headcount as of July 31 was approximately 19,500, with ongoing efforts to attract top talent [31][21] - The company is expanding its partner ecosystem, with over 20% of net new ACV sourced from partners in the last quarter [22] - Workday is actively pursuing growth opportunities in India, with plans to establish a local data center and expand its team [24][122] Q&A Session Summary Question: Market concerns regarding SaaS and AI startups - Management believes concerns about AI disruption to SaaS models are overblown, emphasizing Workday's strong market position and customer base [45][49] Question: Crosscurrents affecting growth - Management noted strong performance in Europe despite macroeconomic challenges, while observing some headwinds in the SLED market [56][58] Question: Workday Government subsidiary - The subsidiary was established to demonstrate commitment to the government sector and to provide a secure cloud environment [70][71] Question: Acquisition of Paradox - The acquisition is seen as a strategic move to enhance Workday's recruiting capabilities, with expected synergies and growth opportunities [78][84] Question: AI product engagement and win rates - Engagement with AI products is strong, with significant growth in adoption rates among customers [88][90] Question: International market performance - Management expressed satisfaction with growth in international markets, particularly in Europe and Japan, and highlighted plans for expansion in India [122][121]

Core Insights - Workday Wellness has been recognized as a Top HR Product of 2025 by HR Executive, highlighting its effectiveness in enhancing employee benefits programs and adapting to workforce needs [1][3] - The solution connects employers with a curated ecosystem of wellness providers and benefit carriers, enabling organizations to gain insights into employee preferences and improve their offerings [2][3] - Workday Wellness aims to reduce friction for employees in accessing benefits that support their overall well-being, including physical, mental, financial, and social health [2] Company Overview - Workday is an AI platform designed for managing people, money, and agents, utilized by over 11,000 organizations globally, including more than 60% of the Fortune 500 [4] - The platform is built with AI at its core, aiming to enhance workforce management and drive business progress [4] Industry Context - The annual Top HR Products competition evaluates innovative HR solutions based on their innovation, value addition, user experience, and integration capabilities [3] - HR Executive, established in 1987, serves as a leading media company covering strategic HR issues, providing insights to over 220,000 subscribers [6]