Workday Inc - Ordinary Shares - Class A

Strong Q1 momentum; “best first quarter of new ACV growth in 5 years” + AI traction - Management framed Q1 as the inflection point after slower ACV growth in FY26, driven by both the core business and agentic AI. - AI/product momentum highlights: - Organic agents: ~20 in GA/EA; >4,000 customers using at least one organic agent (more than double QoQ). - Hiring agent: 14M hiring processes supported, +44% YoY. - Contract intelligence: 1.1M+ contracts analyzed, up 53% vs. last quarter. - New ACV from agentic AI: grew >200% YoY; management also claims ~$500M ARR approaching from agentic AI solutions.

Business performance & financials (growth, retention, cash generation) - Subscription revenue: $2.354B (+14%) - Total revenue: $2.542B (+13%) (pro services $188M) - Retention/backlog: - Gross revenue retention: 97% - Net customer expansion: ~60% of subscription revenue growth (consistent with prior quarter) - CRPO (12-month subscription revenue backlog): $8.81B (+15.5%) - Total subscription revenue backlog: $27.29B (+11%) - Profitability & cash: Non-GAAP operating margin 31.8%; operating cash flow $696M (+52%); free cash flow $616M (+46%). - Capital return: $1.6B share repurchase in the quarter; $1.3B remaining authorization. (No dividends mentioned.)

Guidance / outlook (reiterated FY27; Q2 specifics) - FY27 subscription revenue: reiterated $9.925B–$9.95B (+12% to +13%) - Q2 FY27 subscription revenue: ~$2.455B (+13%) - CRPO growth in Q2: +13.5% to +14.5% - Q2 pro services: ~$180M - Margin outlook: non-GAAP operating margin FY27 raised to ~30.5%; Q2 non-GAAP ~30% - GAAP margin guide remains lower (per call: GAAP operating margin ~19 pts lower than non-GAAP) - Cash flow: FY27 operating cash flow $3.45B; capex ~$270M; FY27 FCF $3.18B (+15%).