Workday, Inc. (WDAY) Earnings Call Transcripts

Workday, Inc.'s Latest Earnings Call - Q1 FY2027

In the first quarter of fiscal year 2027, Workday, Inc. reported total revenue of $2.542 billion, reflecting a 13% year-over-year increase, with subscription revenue of $2.354 billion, up 14%. The company achieved its best new annual contract value (ACV) growth in five years, driven by strong demand for its AI solutions. Management maintained its fiscal year 2027 subscription revenue guidance of $9.925 billion to $9.950 billion, indicating growth of 12% to 13%. Notably, the non-GAAP operating margin guidance was raised to 30.5%, signaling improved profitability expectations.

Reported metrics

Guidance from management

Management reiterated its FY '27 subscription revenue outlook of $9.925 billion to $9.950 billion, reflecting growth of 12% to 13%. They also expect Q2 FY '27 subscription revenue to be approximately $2.455 billion, with a non-GAAP operating margin of approximately 30%.

What management said

I think you said it well. And like Aneel has described, what we have changed at Workday and have laser focus now is either building APIs for AI or building AI agents. And that allows us really to be fully focused on the biggest opportunity ahead of us.

Yes. And if I could just say, this is more aspirational than anything else. I'd love to see us continue the growth that we had in Q1, but keep headcount as close to flat for the year as possible because we are getting the benefits of using our own products and other AI tools. And I think that's where I think I'm hopeful and believe that we're going to have additional margin expansion as we get those benefits. And I w...

What analysts pressed on

Analysts raised concerns about the competitive dynamics in the AI space and the potential impact on Workday's traditional business model. There were questions about how Workday plans to maintain its competitive edge as AI adoption increases and how it will address customer needs for additional functionalities.

Main topics on the call

• Best New ACV Growth in 5 Years — Workday experienced its best first quarter for new ACV growth in five years, indicating a strong recovery from previous slower growth. CEO Aneel Bhusri stated, "Following slower ACV growth in fiscal year '26, we're seein...
• AI Adoption Driving Growth — The adoption of AI solutions is significantly contributing to revenue growth, with over 200% year-over-year growth in new ACV from agentic AI products. Rob Enslin noted that "more than 1/4 of new ACV from customer base e...
• Integration of Sana and AI Solutions — Workday's integration of the Sana platform is enhancing customer experience and driving AI adoption. Aneel Bhusri mentioned, "Sana is now the new front end for Workday," which is expected to boost engagement and sales.
• Increased Operating Margin Guidance — Management raised its non-GAAP operating margin guidance to 30.5%, up from previous estimates, reflecting improved operational efficiency. CFO Zane Rowe stated, "We are pleased with our performance in Q1, and we are reit...

Read the full Workday, Inc. transcript (Q1 FY2027) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 60 Workday, Inc. earnings call transcripts on record, spanning February 27, 2020 to May 21, 2026. Based on this history, Workday, Inc. reports quarterly. The most recent call on file is dated May 21, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

WDAY

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

Software

Calls on record

60

First call

February 27, 2020

Most recent

May 21, 2026

Reporting cadence

quarterly