Companies · WDAY
Workday
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Latest analysis
Updated Aug 27, 2026
Workday Q2 FY27: AI ACV crosses $100M threshold, ARR hits ~$600M, but consumption model creates revenue lag into FY28
AI products drove more than $100 million of new ACV in Q2 FY27, representing over 25% of all new ACV closed — a step-change from prior periods that signals Workday has crossed from AI pilot to AI commercial traction. AI ARR reached approximately $600 million, up more than 200% year-over-year, validating the platform monetization thesis. The critical tension: 5,500 customers are using organic agents but only approximately 200 have signed flex credit agreements, creating a structural revenue lag that management explicitly baked into cautious FY28 subscription revenue growth guidance of approximately 11%.
Tone: bullishRevenue
$9.6B
WDAY 10-K · FY 2026
Employees
21,000
Revenue growth YoY
+13%
Founded
2005
Profile
WDAY 10-K Item 1 · Mar 6, 2026Workday is a cloud-based enterprise software company offering AI-powered applications for human capital management, financial management, spend management, and planning. It serves more than 11,500 organizations worldwide, including more than 65% of the Fortune 500, with over 75 million users under contract. The company generates revenue primarily through subscription services, which accounted for approximately 92% of total revenues in fiscal 2026.
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Workday is the enterprise AI platform for managing people, money, and agents. Workday provides more than 11,500 organizations with cloud solutions powered by artificial intelligence to help solve some of today's most complex business challenges, including supporting and empowering their workforce, managing their finances and spend in an ever-changing environment, and planning for the unexpected. We strive to reimagine how work gets done and hope to empower customers to do the same through an innovative suite of solutions with more than 75 million users under contract around the world and across industries – from emerging and medium-sized businesses to more than 65% of the Fortune 500. As organizations face changing conditions, we believe the need for an intuitive, open, scalable, and secure platform that provides unified management of human resources, finances, AI agents, suppliers, and planning is more important than ever. Workday AI is built into our platform, allowing us to rapidly deliver and sustain models that can transform business processes and solve countless business problems. Workday's insight into how people, money, and agents move through organizations provides a depth of context in HR and finance, allowing us to understand how and where work gets done and to strategically design solutions to have the greatest impact. In fiscal 2026, we introduced new Workday AI agents to accelerate hiring, enhance frontline worker experiences, simplify financial processes, and improve employee information access. We have achieved significant growth since our inception in 2005, when we pioneered HCM in the cloud.
Primary products
- Workday HCM
- Workday Financial Management
- Workday Spend Management
- Workday Adaptive Planning
- Workday Peakon Employee Voice
- Workday VNDLY
Business segments
End markets
Geographies
Named customers
Named competitors
“We believe that we compete favorably based on these factors. Our ability to remain competitive will largely depend on our ongoing performance in product development and customer support.” Competitive position, as stated in the filing
Revenue commentary · FY 2026
Total revenues grew 13% year-over-year in fiscal 2026, driven primarily by a 14% increase in subscription services revenues.
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Analysis, signals, diligence answers, M&A activity and every quote, each citing the filing it came from.