Workday's CEO announces the company's transition into Chapter 4, emphasizing innovation with AI to transform HR and finance, following periods of founding, hyper-growth, and operational excellence. The call highlights the importance of non-GAAP financial measures, forward-looking statements, and the start of the first quarter of fiscal 2027 quiet period.

The dialogue challenges the notion of AI replacing HR and ERP systems, emphasizing their complexity and deterministic nature. It envisions a future where AI enhances these systems, improving user experience, business process automation, and insights, leading to better outcomes and ROI.

Reflecting on past achievements, the focus shifts to future growth through agentic AI, with seamless integration of acquired solutions into core apps. Anticipating increased customer trust and satisfaction, the strategy highlights organic agent development, embedding AI for significant ROI, and reaccelerating growth for long-term success.

The dialogue highlights the transformative impact of AI on enterprise operations, emphasizing the development of AI agents for HR, finance, and sales processes. It showcases significant achievements, including 1.7 billion AI actions in FY26, over $100 million in new ACV from AI products, and the launch of Sana Core and Sana Enterprise for enhanced conversational AI capabilities. The company leverages AI to accelerate product innovation, with over 75% of software engineers using AI coding assistants, resulting in a 22% growth in engineering output. The strategy focuses on automating business processes and delivering an AI-first user experience to enhance productivity and efficiency across the enterprise.

Workday's Q4 highlights customer trust, expansion deals, and AI's pivotal role, with AI-inclusive transactions averaging 50% larger, driving growth with over 11,500 global customers.

Initial traction post-acquisition shows customers, including Accenture, adopting AI solutions for enhanced productivity and agility. Strategic relationships with entities like Boston's Children's Hospital and the State of New York Unified Court System are being formed. The introduction of Flex credits pricing model is aligning customer spend with value, with plans for continued growth in adoption and investment in customer base activation.

The dialogue highlights the strong momentum in net new medium enterprise deals, attributing roughly 60% of net new ACV to a few key customers. It discusses the acceleration of time to value through global expansion of Workday, emphasizing the role of partners in scaling international growth and enhancing platform value. Despite longer closing times for some large enterprise deals, the pipeline remains robust, and significant progress is noted in international markets, particularly in Canada, EMEA, ASEAN, and Japan. The strategy for FY 27 focuses on leveraging innovation for customer outcomes, broader adoption, and deeper platform commitments, positioning Workday as a pivotal player in modernizing HR and finance operations.

Workday reports Q4 subscription revenue of $2.360 billion, up 16%, with FY total at $8.833 billion, up 14%. AI solutions and deep trust customer relationships drive expansion. Strong gross revenue retention at 97%, Q4 operating cash flow at $1.28 billion, and free cash flow of $1.22 billion. Shares repurchased: $1.5 billion in Q4, $2.9 billion for FY. Cash and marketable securities: $5.4 billion. Headcount: 21,070 as of Jan 31.

A global workforce solutions provider outlines its financial outlook for FY 27, projecting subscription revenue growth of 12% to 13%, professional services revenue, and a non-GAAP operating margin of approximately 30%. The company highlights the impact of a diaa contract on Q4 revenue, anticipates a 5% sequential increase in subscription revenue for Q1, and emphasizes an accelerated AI investment strategy aimed at revolutionizing HCM and finance solutions, with a focus on long-term growth and profitability.

The dialogue explores the strategic vision for Workday's future, emphasizing the role of AI in distinguishing the company's offerings. The speaker outlines plans to leverage AI advancements to enhance product capabilities and market positioning, aiming to set Workday apart in a competitive landscape.

The dialogue highlights confidence in the company's robust core business, emphasizing rapid growth of acquired and organic AI solutions. The focus is on leveraging agentic technologies to achieve groundbreaking outcomes, with an optimistic outlook on future market adoption and innovation.

The dialogue outlines an ambitious vision for automating finance processes using AI, aiming for a 'lights out finance' model. This includes continuous transaction analysis, compliance testing, and optimization of contracts and bookings, all integrated into a seamless Sana AI user experience, blending back-end automation with front-end innovation.

A company reassures stakeholders about its conservative fiscal guidance for FY27, emphasizing optimism over agent-based product adoption, while acknowledging potential execution challenges and a delayed revenue impact from recent initiatives.

The company is prioritizing organic development and in-house agent creation for FY27, reducing the emphasis on M&A. While not ruling out opportunistic acquisitions, the focus remains on organic growth, with inorganic contributions expected to be minimal in the upcoming fiscal year's revenue guidance.

Discussion revolves around an unexpected $25 million sequential decline in subscription revenue in Q1, attributed to the non-recurring Diaa contract, seasonal effects, and timing of deal closures, despite strong retention rates. The conversation emphasizes the importance of understanding the nuances in revenue forecasting within a subscription model.

Discussed the company's stable core business and focus on reaccelerating growth through AI and agentic offerings. Emphasized the transition to a consumption-based model, similar to hyperscalers, and the potential upside from third-party applications leveraging the company's APIs. Anticipated strong performance in the second half of the year, setting up for an exceptional following year.

Discussion highlights positive developments in Europe, Asia, and Canada, emphasizing organic growth strategies and expectations for strengthening customer bases in key regions by 2027.

Discussion highlights how AI agents deliver efficiency gains by automating tasks, reducing labor costs, and solving complex business issues, leading to significant savings and new value scenarios for customers. Also touches on pipeline elongation impacts and positive outlook for the back half of the year.

Discusses the evolution from cloud to AI, emphasizing the importance of data models and API investments for SaaS companies. Highlights the need for ROI and productivity gains, exploring the role of AI agents in replacing human labor and improving business processes, while considering the future of displaced roles.

The dialogue highlights optimism regarding future margin improvements driven by AI investments, strategic growth initiatives, and the successful integration of organic and inorganic resources, with expectations of incremental margin upside as growth accelerates.

The dialogue highlights the strategy to streamline the sales transition following a key departure, emphasizing the empowerment of regional leaders for quicker decision-making and direct customer engagement. It underscores the move towards a flatter organizational structure to accelerate processes and the deployment of activation engines for faster market penetration, reflecting a commitment to agility and efficiency in sales operations.

The dialogue discusses strategies for monetizing third-party agents and AI access on the Workday platform, emphasizing a tiered pricing structure and consumption-based model to ensure value capture from data context, while reaffirming the 35% operating margin target for fiscal 28.

The dialogue discusses monetizing consumption via API calls and Data Cloud, emphasizing the value of modern agents exposed as APIs. It highlights the choice between raw APIs, data context, and premium agent APIs, which aggregate complex tasks across HR and finance, reflecting the shift towards open microsystems.

The dialogue explores the strategic balance between investing in growth and maintaining operating margins, emphasizing AI's role atop cloud services. It discusses the potential risks of third-party solutions leveraging domain expertise built on platforms like Workday, potentially diverting value creation. The conversation highlights the need for managing these risks while capitalizing on AI advancements for enhanced growth and profitability.

The dialogue underscores the strategic importance of constructing an AI-integrated ERP system, emphasizing the need for enterprise-specific knowledge, compliance, and process understanding. It highlights the role of APIs in opening up this intelligence layer, fostering ecosystem partnerships, and the dual strategy of developing proprietary applications while remaining agnostic to third-party involvement. The overarching theme is leveraging AI within a structured framework to create and capture value in HR and finance domains.