Workday Inc - Ordinary Shares - Class A

Revenue Growth and Financial Performance: Workday reported a solid first quarter with subscription revenue of $2.059 billion, reflecting a 13% YOY growth (15% adjusting for the leap year). Total revenue reached $2.24 billion, also growing by 13%. The company maintained a strong 98% gross revenue retention rate and a non-GAAP operating margin of 30.2%.

Guidance for FY 2026: The company reiterated its subscription revenue guidance of $8.8 billion for FY 2026, anticipating Q2 subscription revenue of approximately $2.16 billion, again a 13% growth. The continued stability in a choppy macro environment gives confidence to maintain this guidance, with expected CRPO growing between 15% and 16%.

Investment in AI and New Products: Workday's AI innovations continue to gain traction, with new ACV across AI products doubling year-over-year in Q1. With 25% of customer expansions including AI solutions, customer willingness to invest in AI is a positive indicator for future growth. Seven new AI agents were recently announced to launch within the next few months.