With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Resilience and the capacity for reinvention have never been more important.

Future 50-2021-Workday

The Future 50

This year’s Fortune 500 marks the 67th running of the list.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

Our 2020 list of the 100 best companies as ranked by their employees. See which companies made the list.

Fortune 100 Best Companies to Work For

This year's list of best workplaces in technology value people, not just as employees, but as humans.

Best Large Workplaces in Technology 2020-Workday

Employees say: 
“Culture, from the top down, is awesome. Executives through individual contributors mean what they say and say what they mean. Everyone is given ample opportunities and is encouraged to explore roles and take training that are of interest to them.” 
Read Great Place to Work review .

Best Large Workplaces in Technology

The 35 companies highlighted on this year's list promote growth, transparency, and diversity in the workplace.

Workday_Best Large Workplaces Bay Area 2020

Employees say: 
 
"The firm shows respect and appreciation for everyone regardless of "level" or "status." it's a place that cares very much about creating a culture of belonging and shared contributions and investments." 
 
Read Great Place to Work review .

Best Large Workplaces in the Bay Area

Explore this year's ranking of the 50 companies with the best long-term growth potential.

Future 50-2020-Workday

A dominant force in cloud-based programs for HR management and financial planning, Workday’s reach belies its size. Though it brought in a relatively modest $3.6 billion in revenue in 2019, its customers employ some 45 million people worldwide. Workday’s sales rose 29% last year, and analysts anticipate continued growth as the company expands its suite of tools. Another promising project: helping corporate clients take part in “talent marketplaces” that connect displaced workers with new positions.

This year's Fortune 500 marks the 66th running of the list.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

Our 2019 list of the 100 best companies as ranked by their employees. See which companies made the list.

Companies on this year's list earned national recognition in at least five different countries worldwide—and as many as 33 countries.

World's Best Companies 2019-Workday

World’s 25 Best Workplaces

Fortune's proprietary methodology allows us to zero in on the 50 global firms that are best poised to deliver—and continue delivering—above average gains.

At the Best Workplaces for Women, company leaders foster mentorship and career growth.

Workday-Best Large Workplaces for Women 2019

An employee says: 
 
"It's the first company I've worked at where I feel senior leadership acts with integrity and I trust them to make the right decision. I'm also extremely proud of the number of women in leadership roles, especially where they're not always found." 
 
Read the Great Place to Work review .

100 Best Large Workplaces for Women

This year's Fortune 500 marks the 65th running of the list.

We surveyed tens of thousands of young employees to create this list of millennials’ favorite workplaces.

Workday-best workplaces millennials 2019

Employees say: 
“Workday is invested in growing young talent and helping you find the career path that you love. I've moved departments and teams multiple times since I've been here and I've had a say in what i'm interested in all long the way.”

100 Best Large Workplaces for Millennials

Our 2018 list of the 100 best companies as ranked by their employees. See which companies made the list.

Welcome to the inaugural Fortune Future 50, our new ranking of companies best positioned for breakout growth.

This year's Fortune 500 marks the 64th running of the list.

Best Large Workplaces for Women 2018-Workday

Employees say: 
 
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"Workday takes its commitment to employees seriously. For instance, through internal discussions about how Workday can be a leading employer for women, they unrolled a new paid parental leave policy that far outstrips what most U.S. employers offer." 
 
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Read the Great Place to Work review .

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Employees say: 
 
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"It’s incredibly atypical for an organization of this size to have such a high-trust environment and be able to sustain it. There is a mentality that 'we didn't hire smart people to tell them exactly what to do' I so appreciate." 
 
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"The lights in the building are on a timer that goes off at 6pm, which I have always found to be so incredible. At my previous job at a major tech company, 6pm was what 3 or 4pm here is and the auto-shut off happened at 8:30pm. If I'm ever working late, I'm always so encouraged when those lights go off at 6pm because it feels like Workday as a whole is reminding me that its time to leave--reiterating the importance of work-life balance and ensuring I'm not burning out. I think that small action of a self-timed light panel has made such a massive impact on my perception of this company and how it cares for its employees." 
 
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Our 2017 list of the 100 best companies as ranked by their employees. See which companies made the list.

Fortune’s annual list of the 100 Best Workplaces for Women highlights companies with generous benefits, flexible schedules, and an emphasis on balancing work and life. 

Best Workplaces in the Bay Area 2017- Workday

Employees say: "We are truly a 'team'—anyone here will drop what they are working on to help you, and people share information willingly. We all have a common goal of providing the best product with the best service; everyone here lives and breathes that common goal." 
 
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"Individual accomplishments are encouraged and rewarded, but then the sharing of those ideas is a consistent part of the culture. With this approach, I feel that I am appreciated for new thoughts and ideas while not feeling the need to protect my IP." Read the .

best workplaces for millennials 2017 Workday

Employees say: 
 
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"I came to Workday on the technology side from a non-traditional background, expecting to meet resistance and challenges given my past experience. But, I was met with the exact opposite. My coworkers are ultra supportive and open, will drop everything at any given time to answer questions or brainstorm solutions, and constantly motivate me to keep learning. Everyone is passionate about their work and my manager takes a very active role in ensuring my continued success and development. When I come into the office, I just feel happy and thankful to be here. The mood is very cheerful and yet focused and determined on delivering quality products. I consider my coworkers to be my friends. I can't imagine working anywhere else." 
 
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"I have been given opportunities and promotions based solely on my performance and merits and potential, despite the fact that I do not have a lot of experience. At Workday, if you prove you can do the job, you'll be given the chance in most cases even if you aren't the smartest, most educated, or most experienced person on the team. They will pick the person they truly think is best for the project or role, not the person who thinks they deserve it because they've been here the longest. It's been a great thing for me. I've been able to achieve a lot very quickly, which keeps me motivated to keep achieving." 
 
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Google/Alphabet is the No. 1 place to work for the seventh time in 10 years. Six newcomers include Veterans United at No. 30, Hilton Hotels at No. 56, and Slalom Consulting at No. 100. IKEA’s U.S. arm returns to the list, along with GoDaddy and Sheetz.

Fortune’s second annual list of the 100 Best Workplaces for Women highlights companies with generous benefits, flexible schedules, and an emphasis on balancing work and life. 

100 best workplaces for women 2016- workday

Employees say: 
&nbsp; 
"This is THE best company I have ever worked for. They are always thinking of employees and what is right. They really try to make a day at Workday not your ordinary workday. From bringing your dogs to summertime Monday Fundays with a variety of outdoor activities, to all of the events for employees and their families like Bring Your Kids, Bring Your Parents, Bring Your Teens and our company picnic. This year it was a carnival, and I have never seen so many smiling happy faces. I have never worked for a company that is so generous." 
&nbsp; 
"Workday is fun, energetic company to work for—very dynamic in a constant state of positive change to create improvements. The company supports autonomy and empowers you to lead, make, and own your decisions." 
&nbsp; 
Read the Great Place to Work review .

The second annual ranking of the best employers for workers 35 and under.

best workplaces for millennials 2016- Workday

"The sense of community at Workday is amazing. Whether it be seasoned developers or fresh out of college young professionals, we all collaborate at a pace that works for everyone. The playing field is flat and allows new developers to work with experienced developers without feeling out of place. I feel my team and my manager are truly dedicated to helping one another individually and collectively to accomplish our goals with time to spare—which usually goes towards something fun!" says one millennial employee. 
 
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Says another millennial: "The company puts a large emphasis on fun and flexibility. I have an amazing work life balance. I can spend time with my family and pursue other goals and ambitions outside of work. I have a lot of autonomy in my work so I don't have to be tied to my office 10 hours every day. As a young person work life balance is very important to me, and I feel blessed to have this privilege working at Workday." 
 
&nbsp; 
 
Read the .

This year’s list marks Fortune's 18th year of partnering with Great Place to Work. Google ranks No.1 for the sixth time, and 16 new companies make impressive debuts, including Acuity (No. 3), Twitter (No. 24), and Riot Games (No. 13).

The inaugural list of the 100 Best Workplaces for Women from our partners at Great Place to Work includes the wealth management firm TrueWealth at No.1, hospital system Texas Health Resources (No. 3), and Build-A-Bear Workshop (No. 10). Rankings were determined by employee surveys and the representation of women within the organizations.

BEST COMPANIES 2015  Workday

HR tech services company Workday has over 3,000 employees, of which 37% are women. Nearly 40% of executive titles are held women, while 46% of management positions belong to women, too. "Workday is a special place," one employee said. "Our products are technologically superior, our executive team members are seasoned veterans, our colleagues are extremely competent and our corporate culture is one of high ethics and extraordinary fun." .

The inaugural list of the 100 Best Workplaces for Millennials from our partners at Great Place to Work includes surprising newcomer Power Home Remodeling, making an impressive debut at No. 1. Other standouts include Chili’s Grill and Bar (no. 11), Elevation Church (No. 34), and Yelp (No. 41).

Workday, founded by a co-founder of PeopleSoft, offers its employees (called “workmates”) no annual limit on time off, as well as the opportunity to participate in a work exchange program that would send them to Dublin or Munich. This maker of cloud-based human resources software has made sure its own humans are happy. <a style="color:#ff0000;" href="http://us.greatrated.com/workday">Read the Great Place to Work review.</a>

Perks

100% health coverage

Unlimited sick days

Telecommuting

Job sharing

Subsidized childcare

Compressed work weeks

Fully-paid sabbaticals

On-site fitness/subsidized gym

On-site medical care facility

Non-discrimination policy includes sexual orientation

Health insurance for part-timers

Sick days for part-timers

College tuition reimbursement

Student loan debt repayment

Medical facility at all locations

Paid Time Off

# Sick days

Compensation

Most common job (for salaried employee)

Hiring/staffing (past 12 Months)

Full-time and part-time job growth

# of job applicants

Avg. # of applicants per opening

# New graduates hired

Company Info

Industry

Founded

HQ Location

Sites

Worldwide Employees

Worldwide Revenue

Last Year Rank

Web Address

Date info provided (companies may opt to keep some data confidential)

Millennials In The Organization

# of millennial employees

Millennials as % of total workforce

Women In The Organization

% of Women in Management (non-Executive)

% of Women in Executive/Manager Positions

Future 50

Overall Score

Sector

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Strongest Dimension

Years on list

Previous rank

State

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Workday provides software that helps organizations manage financial operations, human capital, spending, and expenses, along with tools for workforce planning, reporting, and automation. Founded in 2005 and headquartered in Pleasanton, Calif., the company also offers industry-specific solutions for health care, education, and government, as well as developer tools like Workday Extend and AI features through Workday Illuminate.

Q2 2027

Q1 2027

Q4 2026

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Workday (WDAY): Company Profile, Stock Price, News, Rankings

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Workday

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Welcome to Workday's first quarter full year twenty twenty six earnings call. At this time, all participants are in a listen only mode. We will conduct a question and answer session towards the end of the call. During the Q and A, please limit your questions to one. I will now hand it over to Justin Furby, Vice President of Investor Relations.

Thank you, operator. Welcome to Workday's first quarter fiscal twenty twenty six earnings conference call. On the call, we have Karl Aschenbach, our CEO Zane Rowe, our CFO and Garrett Katzmeier, our President, Product and Technology. Following prepared remarks, we will take questions. Our press release was issued after close of market and is posted on our website, where this call is being simultaneously webcast.

Before we get started, we want to emphasize that some of our statements on this call, particularly our guidance, are based on the information we have as of today and include forward looking statements regarding our financial results, applications, customer demand, operations, and other matters. These statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. Please refer to the press release and the risk factors in the documents we file with the Securities and Exchange Commission, including our fiscal twenty twenty five annual report on Form 10 ks, for additional information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, during today's call, we will discuss non GAAP financial measures, which we believe are useful as supplemental measures of Workday's performance. These non GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.

You can find additional disclosures regarding these non GAAP measures, including reconciliations with comparable GAAP results, in our earnings press release, in our investor presentation, and on the Investor Relations page of our website. The webcast replay of this call will be available for the next ninety days on our company website under the Investor Relations link. Additionally, the transcript of this call and our quarterly investor presentation will be posted on our Investor Relations website following this call. Our second quarter fiscal twenty twenty six quiet period begins on 07/15/2025. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal twenty twenty five.

With that, I'll hand the call over to Carl.

Thank you, Justin, and hello to everyone joining us on our call today. I'm pleased to report that Workday delivered a solid first quarter. We drove 13% subscription revenue growth and a non GAAP operating margin of 30%. This performance was fueled by strong customer adoption across key verticals, geographies and customer segments. We all know the economic environment remains a bit uncertain, but I'm incredibly proud of how our teams are staying focused on our customers' success, and that is driving our results.

Workplace value proposition remains highly relevant in today's market. The CEOs I meet have three key priorities. They want to drive efficiencies. They need to be agile and responsive to market shifts. And they want to unlock growth with innovation.

And from our perspective, they're turning to Workday for all three. We help manage and optimize their most critical assets, that is their people and money, on one platform with AI at the core. This unified approach reduces total cost of ownership and helps them move faster with greater precision. Our customers trust that Workday's AI is powered by the largest and cleanest finance and HR dataset. Our AI is fueled by more than 70,000,000 users under contract and 1,000,000,000,000 transactions processed on the platform last year, which gives us a deep understanding of how people work.

This enables us to deliver highly differentiated value to our customers. I'll speak more about that in a moment. But first, let's turn to our customer highlights for the quarter. In Q1, we established new HCM relationships with United Airlines, Pilot Travel Centers, and Mutual of Omaha Insurance Company, and it was another strong quarter of expansions with customers such as FedEx, CVS Health, ASD Stores and Chipotle. Our investments in financials continues to pay off, with solid growth in both net new ACV and customers.

More than 30% of our net new wins this quarter were once again full suite, and in our focused industries of SLED in healthcare, it was more than 50%. We also had some strategic financials go live this quarter, including BJ's Restaurants, Essentia Health, and Genesis Cloud Services. Our AI innovation continues to gain traction. New ACV across our AI products more than doubled year over year in Q1, and roughly 25% of our customer expansions in the quarter included one or more of these products, such as Recruiting Agent, Talent Mobility Agent, Eversource, and ExtendPro. Fantastic companies including Visa, LabCorp, and Aon all selected our AI products.

I'm also excited about the momentum we're building with the Office of the CIO. We're driving increasing demand for XtendPro, which enables our customers to build AI applications on top of our platform. This continues to be one of our fastest growing products, and it's amplifying innovation for our customers. While Workday serves more than 60% of the Fortune 500, 70 five percent of our customers have fewer than 3,500 employees, and we see a significant growth opportunity in the emerging and medium enterprise markets. In Q1, we launched Workday Go specifically for these companies.

It gets them up and running on our enterprise grade platform fast. We're talking implementations in as little as thirty to sixty days with preconfigured deployments. And it's not just the software. They get the full support of our partner ecosystem in a clear fixed pricing model. It really moved the needle for us in Q1, helping our emerging and medium enterprise teams deliver a strong quarter.

Now, let's talk about industries. I'm excited to share that we now have five industries exceeding $1,000,000,000 in annual recurring revenue. Manufacturing and Tech and Media, two industries that had a solid quarter in Q1, recently reached this milestone. They joined our three other billion dollar industries: financial services, retail and hospitality, and professional and business services. Like I've mentioned many times, this shows the strength and diversity of our business.

Our focus on the federal sector continues to pay off. We are building a foundation for long term growth in this market. This was clear in the huge success of our third annual federal forum. Attendance was up 65% at this year's event and we had some great conversations with senior government leaders about the critical need for transforming the federal workforce, especially in the key areas such as AI, security, and skills. We're also very proud of our leadership in higher education.

We were just named a leader in the first ever Gartner Magic Quadrant for Higher Education Student Information Systems Software as a Service. In Q1, we were thrilled to welcome Center College, Bow Valley College, and Gannon University as new customers. And we're seeing great success with Workday Student Go Lives, including the University of Arkansas System, which is now fully live at 14 institutions across the entire state. In an environment where everyone is trying to do more with less, Workday gives our customers the ultimate advantage. AI is built directly into our platform and is always on.

Greater than 60% of our customers are already leveraging Workday Illuminate AI. We're excited by the adoption we are seeing, but we are even more excited about the strong ROI our customers are getting from our AI solutions. Look at Western Union, a long time Evisort customer. Using Evisort's AI powered contract management solution, which was made available through Workday in Q1, they were able to process contracts 65% faster, while reducing associated outside legal spend by almost 70%. Just incredible results.

The Evisor team had a fantastic Q1 and they're just getting started. Customers are clearly willing to pay for these types of results, which opens up significant new AI monetization opportunities to help fuel our long term growth and set us apart from the competition. When we look at our roadmap, our focus is on delivering innovations that drive meaningful ROI for our customers. In fact, our agents must meet specific TCO or total cost of ownership requirements with our early adopter customers before we even bring them to market. Just this week, we announced a wave of new AI agents that harness the power of our unmatched dataset to help amplify talent potential, reduce costs, accelerate decision making, and mitigate risk.

And to keep us at the forefront of AI innovation, we're really excited to welcome Peter Baylis as our new Chief Technology Officer. Peter will lead our AI and ML initiatives driving our vision forward. With his background at Stanford in Google Cloud, he has a proven track record of AI innovation at scale, and I couldn't be more excited he chose Workday. Partners continue to be a critical driver of our success, extending the power of our platform, fueling pipeline growth and bringing new innovations to our customers. In Q1, we once again saw great contributions from our partners, with more than 20% of our net new ACV in the quarter coming from partner sourced pipeline.

Partners are also critical in helping us expand into new markets and meet the diverse needs of our global customers. In Q1, we signed our first volume managed service provider partnership with the Mutual Group to serve the mutual insurance industry. Additionally, our Global Payroll Connect program now supports payroll delivery in 187 countries and territories, thanks to 29 partners building integrations. And through our partnership with Strata, our customers can manage up to 60 global payrolls all under a single Workday contract. On the innovation front, we're seeing strong momentum in our Built on Workday program.

In Q1 alone, we added 25 new partner apps to the Workday marketplace. Our community of customer and partner developers has nearly doubled over the past year, a testament to the power of building on the Workday platform. And in just two weeks, we'll host thousands of them at our developer conference, DevCon, in Las Vegas. Our investments in our global strategy are helping us better serve our existing customers, attract new ones, and make our operations even more efficient. In Q1, we saw solid growth across EMEA, Asia Pacific and Japan.

In EMEA, we had notable net new wins with Opella Healthcare and global manufacturer Georg Fischer, and we expanded with semiconductor equipment manufacturer ASML and insurance provider, Aviva. We also had a major financials expansion with Decathlon as this relationship continues to grow. As part of our ongoing investment in The UK, we went live on the AWS UK public cloud, making it possible for our customers to access Workday solutions locally. We also announced a new location for our EMEA headquarters in Dublin, which will bring our local workforce of more than 2,000 employees together. APAC had a strong start too, with wins at Swinburne University of Technology, the University of Melbourne in Australia, Collins Foods, and PPL Pharma.

And finally, Japan kicked off the year with new wins at Mitsubishi Motors, TEPCO, and Rigaku. In Q1, we saw the diversity and durability of our business firsthand, with multiple levers driving long term growth. Looking ahead, we're staying close to our customers as they navigate the macro environment. No company is immune to these challenges, and we are watching it across particular markets such as SLED and our international business. That said, we've got a compelling value proposition, and our teams are focused on controlling what we can, and that is delivering innovation and strong ROI for our customers.

The future of work has evolved. During the pandemic, it was about where people worked and how they collaborated. Today, it's about how humans and AI agents work together and how companies manage the human and digital workforce as one. I believe no company is better positioned than Workday to lead this shift. With our expertise, our unparalleled data, and a platform built with AI at its core, we are ready to shape the future of work.

I want to give a heartfelt thank you to our customers for their continued trust in Workday, to our incredible partners, and especially to our workmates around the world. Your hard work and commitment gave us such a solid start to the year, and I couldn't be more grateful. With that, I'll turn it over to Zane.

Thanks, Carl, and thank you to everyone for joining today's call. Our solid Q1 results highlight the ongoing progress across our strategic growth areas and the continued efficiencies we are driving throughout the business. Turning to results, subscription revenue in the first quarter was $2,059,000,000 up 13% or 15% when adjusted for the leap year compare. Professional services revenue was $181,000,000 resulting in total revenue of $2,240,000,000 growth of 13%. From a geographic perspective, U.

S. Revenue in Q1 totaled $1,680,000,000 up 13%, and international revenue totaled $559,000,000 also up 13%. Twelve month subscription revenue backlog or CRPO was $7,630,000,000 at the end of Q1, increasing 15.6%. This includes approximately half a point of growth from subscription contracts related to implementation and testing environments, which we refer to as tenants. While these short term contracts have and continue to be part of our subscription revenue, we are now including them in CRPO as they have grown with the business.

Total subscription revenue backlog at the end of the quarter was $24,620,000,000 up 19%, and gross revenue retention rates remained a strong 98%. Non GAAP operating income for the quarter was $677,000,000 representing a non GAAP operating margin of 30.2%. The outperformance versus guidance was a result of moderated headcount growth along with revenue outperformance. GAAP operating income in the quarter of $39,000,000 was impacted by $166,000,000 charge related to the restructuring which occurred earlier in the year. Q1 operating cash flow was $457,000,000 growth of 23%.

We repurchased $293,000,000 of our shares during the quarter and had $5.00 $9,000,000 in remaining authorization as of April 30. In addition, our Board has approved a new $1,000,000,000 open ended buyback authorization. We ended the quarter with $8,000,000,000 in cash and marketable securities. Our current headcount, which incorporates the previously announced restructuring, stands at approximately 19,300. Now turning to guidance.

Our Q1 subscription revenue performance and progress across key initiatives Carl highlighted earlier positions us well for the year and we're reiterating our subscription revenue guidance of $8,800,000,000 Our outlook benefits from our diverse set of opportunities and the important role our platform plays across our customer base and partner ecosystem. While there's heightened macro uncertainty, particularly across certain markets and verticals, we haven't seen this meaningfully impact our prospects. Though it's early in the year and the environment remains fluid, we remain focused on execution and our strategic initiatives. We anticipate Q2 FY twenty twenty six subscription revenue to be approximately $2,160,000,000 growth of 13%. We continue to expect a slightly faster pace of subscription revenue growth in the second half of the year, particularly in Q4, driven in part by revenue from product deliverables associated with previously closed deals.

We expect CRPO to increase between 1516% in Q2. This includes approximately a point of growth from the previously discussed tenant contracts. We expect a similar quarterly impact of approximately one percentage point to CRPO growth for the remainder of the year. We continue to expect FY 2026 professional services revenue of approximately $700,000,000 For Q2, we expect professional services revenue of $180,000,000 We expect FY '26 non GAAP operating margin of approximately 28.5%. This outlook accounts for Q1 outperformance along with continued investments across key growth areas including AI, our partner ecosystem and targeted international markets.

In addition, it includes our ongoing efforts on growing efficiently. We continue to position the business to drive long term growth and margin expansion. For Q2, we expect non GAAP operating margin of 28%. We expect GAAP operating margins to be approximately points lower than our Q2 and full year FY twenty twenty six non GAAP operating margins respectively. The FY twenty twenty six non GAAP tax rate is expected to be 19%.

Workday (WDAY) Q1 2026 Earnings Call Transcript

Company Participants