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." 
 
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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

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EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

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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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Ladies and gentlemen, welcome to Workday's First Quarter Fiscal Year 2027 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&A, please limit your questions to one. I will now hand it over to Justin Furby, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Welcome to Workday's first quarter fiscal 2027 earnings conference call. On the call, we have Aneel Bhusri, our CEO, Gerrit Kazmaier, our President, Product and Technology, Rob Enslin, our President and Chief Commercial Officer, and Zane Rowe, our CFO. 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 2026 annual report on Form 10-K, 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 disclosure 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 90 days on our company website under the investor relations link. Additionally, the prepared remarks of this call and our quarterly investor presentation will be posted on our investor relations website following this call. Our second quarter fiscal 2027 quiet period begins on July 15th, 2026. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal 2026.

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

Thanks, Justin, and thanks to everyone for joining us today. It's great to be with all of you. I now have a full quarter under my belt since returning as CEO, and I truly feel the energy building at Workday every day, both around our path forward on AI and the company as a whole. We're in New York City this week for the Sana AI Summit, where we brought together some of the brightest minds in AI with our top customers. It's an incredible event, and it was great to see a few of you there. A few weeks ago, we hosted our top industry analysts at our annual Innovation Summit. Typically a skeptical group, they came away generally impressed by the pace of innovation and by our renewed focus on operating like a startup. One of them even called it the reinvention of Workday.

Their reaction to our vision and execution around AI told me that we are absolutely on the right path. Our Q1 results. We had a great first quarter. In fact, it was the best first quarter of new ACV growth in five years, anchored by the strength of our core business and the traction we're seeing with AI. Following slower ACV growth in fiscal year 2026, we're seeing momentum once again building in the business. I'm confident in our ability to drive accelerated new ACV bookings this year as we bring new agents to market for our customers and drive even greater adoption. Last quarter, I mentioned I came back to help Workday lead again during the biggest technology transformation of our lives. After being back for three months, I have even more conviction that this is Workday's moment to lead.

To do it, we need to operate differently than we have been. In coming back, I was very focused on returning Workday to a startup orientation and a growth mindset. I watched a lot of Steve Jobs videos where he talked about his management approach when he returned as CEO. What struck me most wasn't about what Apple built after he returned, which was obviously incredible. It was more about his management philosophy. There was one interview in particular from AllThingsD where he called Apple the biggest startup in the world and said it was the startup mindset he brought back. Fewer layers, faster decisions, the best ideas winning, more ownership. We're trying to emulate that startup playbook. As the great philosopher Yogi Berra once said, and apropos that we were in New York City this week, it's like deja vu all over again.

We're going back to our founding principles. I've said before, chapter four is a refounding moment for Workday. With AI, we're essentially a startup again. We're a startup sitting on one of the most important enterprise platforms ever built and the trust of more than 11,500 customers. We need to embrace that mindset. It's all about focus and trust, clear ownership, and the best ideas winning. That's how we're leading Workday now, and it's how Dave and I led the company early on. As part of this mindset, we've simplified our priorities to three. Number one, build and deliver the AI future. Number two, grow with our customers. Number three, live our values. We've also streamlined ownership across the organization so every Workmate knows exactly how their work connects. Fewer things done with greater focus.

A dedicated AI agent factory building agents across all of our application areas. Clear ownership and accelerated development of our AI APIs. We've got the right people to do it. We have some incredible leaders from the companies we've acquired now in key roles at Workday. One of them is Joel Hellermark, the founder of Sana, who we named our Chief AI Officer just today. That's by design. These leaders know the startup mindset, and they're helping Workday move faster and stay focused. I've also thought a lot about how Workday wins in this new chapter. I've met with dozens of customers since I've been back, and I keep hearing the same thing. Not one of them is looking to replace Workday with something they're building internally or from a startup.

Instead, they were looking to us first for AI solutions for the HR and finance worlds, and hopefully IT in the future. It's really our opportunity for the taking, but we need to execute flawlessly and with speed. We have all the requisite components, one data model for all customers, one security model, and a true cloud architecture. Our business process framework gives AI the rails it needs to operate safely and accurately inside the enterprise. Over the past several years, we have completely rewritten our tech platform to be AI native in the way we manage transactions, reports, and the UI requests. That's basically the foundation we've spent 21 years building, and now it's been modernized for AI, down to the core OMS. We're delivering the results as well. Q1 was our first quarter with both Sana and Paradox fully integrated.

With Sana, we're giving our customers a completely new Workday experience. It's a new front door to Workday that is simple and modern. The Sana platform is also the foundation for everything we're building in AI going forward. Joel and his team have created something remarkable, and the integration has gone further and faster than I anticipated. We've already proven that customers trust Workday deliver AI through agents we acquired. This is the year we proved that they also buy the agents we're building organically, agents that only Workday can build, and Gerrit will share more on that momentum in a moment. While there are some who believe that AI can disrupt Workday, I see something different, our chance to once again be a disruptor with AI clearly driving that disruption.

To that point, Gerrit will talk about Sana for ITSM and the new travel agent we announced today at the Innovation Summit. These are early examples of what it looks like when we use Sana to rapidly innovate on top of our data and context. What ties all this together is one simple truth. Customers don't want AI for AI's sake. They want AI that adds value to how they run their businesses. Our early adopter customers are already seeing that, and they want more from Workday. To close, I am confident that Workday is ready for this AI moment. Our core business is strong, our AI strategy is working, and our execution is accelerating, starting with Q1. Seeing the agents Gerrit's building and the success Rob is having selling and deploying them with customers, I couldn't be more confident in our path ahead and ability to lead.

Awesome. Thanks, Aneel, hello to everyone. For AI, the world model, it is like the Holy Grail. Today, a large language model, it just predicts the next token in a sentence. The world model, it is the step change needed for it to understand the physics of its real environment. It's about how things actually work and the laws that govern them. On Workday's platform, we have over 80 million users under contract and approximately 1.4 trillion transactions annually. That is giving us a set of data and context that no other competitor can replicate. For more than 20 years, we have been on the journey of building the world model of work. Here is what we have done.

We have mapped the patterns of work at scale, who approves what, how money moves, how people get hired, assessed, developed, and scheduled for their work, and the policies, the processes, and the exceptions around them. Here is the key insight for you. This world model of work, it is the best context engine for agentic HR, finance, and beyond. It unlocks unmatched enterprise-grade accuracy for AI automation. All of this is adding up to agents that our customers can trust to perform actual work inside real business processes. You can see that clearly in the impact that they are delivering already for our customers. In Q1, for example, we have supported 14 million hiring processes with our Recruiting Agent. That is up 44% year-over-year. We have analyzed more than 1.1 million contracts with Contract Intelligence. That is up 53% from last quarter.

Now, that is the world model of work at work. While we're driving all of this amazing impact, the pace of innovation here at Workday, it is accelerating. We now have 20 organic agents in GA or EA, and the number of customers using these agents has more than doubled quarter-over-quarter, with over 4,000 customers using at least one organically developed agent as of today. Here are just a few highlights for you. Deployment Agent is now being used in our first end-to-end customer projects. It is designed to deliver an estimated 30% reduction in implementation hours and cost. In our next wave of AI-driven projects, we are aiming to get that reduction up to 50%. Here is why this is so important.

This reduction in time and in costs of deployment, it is removing a historic barrier to choose Workday, particularly in the mid-market segment. Customers like the University of Arkansas System, GE Vernova, and Mohegan, they are using Deployment Agent across their Workday systems to instantly resolve issues and answer questions. To admins, they can spend their time moving their projects forward. We are seeing a super fast takeoff of our Self-Service Agent. This quarter, our first Fortune 500 customers are expected to go live on Self-Service Agent. We will take another big step at the end of this month. All HCM and finance customers on our AI terms of service, they will get Sana for Workday and our Self-Service Agent as a part of their existing contract.

Let's talk about our accelerating AI business momentum. In Q1, our new ACV from agentic AI products, it grew more than 200% year-over-year. We are also approaching $500 million in ARR from our agentic AI solutions. We are not stopping here. AI, it lets us break free from the narrow definition of legacy business applications that lead to frustrating user experience breaks and outsized spend for so many companies out there. With Sana as our AI platform, we are pushing the boundaries of HR and finance and IT with new AI solutions. Just today, here in New York City, we announced two new agentic solutions from Workday that prove this out. Sana Travel Agent brings business travel planning, booking, and expenses into a single conversational experience. With more than 5 million expense reports processed monthly on Workday, and much of it is travel, this agent, it takes on the heavy lifting.

It can automatically handle bookings, receipts, policy checks, and expenses. Employees get a more seamless travel experience, and finance teams, they get real-time visibility into current spend and future travel commitments. We have also announced Sana for ITSM, which automates workflows for employee on and off-boarding, access changes, and everyday IT requests. Many service requests start with employee lifecycle changes that Workday already knows about, like joining a company, moving across teams, or even exiting. With the key data, the work identity, the org chart, job profiles, and so much more running on Workday, we inherently know the chain of approvals, the required policies, and the right work context. That allows us to simplify and automate ITSM requests at a whole new level.

Lastly, let's take a look at the Workday platform and our AI momentum there. Workday Extend Pro enables customers to build their own AI-powered solutions on our platform, taking advantage of our AI APIs. In Q1, Extend Pro continued to be one of the fastest-growing products, with new ACV nearly doubling year-over-year. Here is our approach. At Workday, we embrace the AI ecosystem, and we design for openness. Our customers and our partners, they can build their own AI innovations without locking them in into a single vendor stack. We are giving our customers choice and three clear paths to run agents on the Workday platform, designed to meet them wherever they are. First, our customers can build their own AI agents with Workday's agent-ready tools. These are a new class of Workday connectors and APIs that are purpose-built for autonomous consumption by AI agents at enterprise scale and available via open standards like MCP.

Second, our customers can plug in Workday agents into their agentic front door using the A2A protocol. Already in Q1, we have made Self-Service Agent available in Microsoft Teams, Microsoft Copilot, and Google Gemini. Third, they can use Workday's agents in Sana for the fully optimized work experience, where Workday provides the reasoning, the context, and the ultimate AI user experience. It's the AI workbench for work. These options give our customers and partners the flexibility to adopt AI the way that best fits their business. Stay tuned for our upcoming developer conference, DevCon, the first week of June in Las Vegas. There, we will announce new Workday AI platform innovations.

Here is the bottom line of all of this. Enterprise AI starts to pay off when agents can perform actual work with the same approvals, security, policy, and guardrails that govern the rest of the business. That's exactly the future we are delivering for our customers. Powerful AI agents harnessing the world's model of work built on an open platform.

Thank you, Gerrit. Hello, everyone. We're proud that more than 11,500 customers around the world trust Workday for the most important parts of their business, from payroll to closing the books. As Aneel said, growing with our customers is one of our top priorities. You see that in our results. In Q1, expansions once again drove roughly 60% of our subscription revenue growth with customers like Queensland University of Technology, Rakuten Group, and Bank OZK expanding their relationships with Workday. We also continued to go deep in federal and had a record turnout at our 4th annual Fed Forum in D.C. last month with nearly 600 attendees. In Q1, we kicked off the next phase of our contract with the Defense Intelligence Agency. Also in Q1, net new business drove 40% of our subscription revenue growth.

We formed new relationships around the world with key brands, including Harley-Davidson, Del Monte, Australian Gas Infrastructure Group, Smiths Group, Heartland Dental, and ACHM Hotels by Marriott. State and local government was also a standout this quarter, where we signed statewide deals with the State of Delaware and the Commonwealth of Massachusetts. Turning to AI, the numbers this quarter tell a clear story. More than a quarter of new ACV from customer base expansions came from AI, and expansion deals that included AI were over 50% larger on average. The pattern is consistent. Customers who adopt our AI go deeper on the platform. The University of Arkansas System is a great example. They have 21 institutions, including research universities, community colleges, and an academic medical center, all on a single Workday instance. They process over 2 million transactions a month.

In Q1, they used our Deployment Agent to cut support tickets and uncover configuration insights that once required manual searches. Deployment Agent has significantly increased the operational velocity and allowed them to scale Workday with less reliance on external consultants. Our Flex Credits pricing model is quickly gaining traction. With Flex Credits, we've unified AI monetization across Workday. One model for agents, AI APIs, and Data Cloud. It makes AI adoption simpler for our customers. While it's still early in the journey, we're seeing a growing mix of AI monetization coming through Flex Credits, and as we bring our new agentic innovations and acquired agents onto the model throughout the year, this will become a more meaningful part of how we grow. We're also continuing to make progress outside of North America. In APAC, we expanded our operations into Vietnam, which opens up a brand-new market for Workday.

This strategic expansion is made possible by five global and regional partners, all dedicated to meeting the growing local demand in Vietnam for digital transformation. In EMEA, we launched an EU-based data residency in Frankfurt. This was a significant milestone for European customers with data sovereignty requirements. We're also expanding Workday GO globally to help these customers get up and run faster in a more standardized way. EMEA is now our second-largest region for medium enterprise, which we define as 500 to 3,500 employees. New ACV in that segment grew by more than 50% in the quarter. Workday GO is now available in France, Germany, and the U.K., with an additional 14 countries available through our partner network. Speaking of partners, our ecosystem continues to be a meaningful driver of our growth.

In Q1, roughly 30% of net new ACV was sourced by partners. We also hit several milestones worth mentioning, including Insperity HRScale solution is now generally available, bringing Workday to the PEO market for the first time to deliver full-service HR for growing businesses. Workday Recognition, powered by Achievers, is live, and we expanded our Workday Wellness program with Morgan Stanley at Work and PerkSpot. The momentum this quarter was broad across expansions, net new, AI, and international. We are growing with our customers and continuously evolving to meet their needs.

Now over to Zane to share more on the financials.

Thanks, Rob. Thank you to everyone for joining today's call. As Rob mentioned, our results this quarter demonstrate ongoing customer adoption across our platform as enterprises around the globe turn to Workday to manage and empower their most important assets. Subscription revenue in Q1 was $2.354 billion, up 14%. Professional services revenue was $188 million, resulting in total revenue of $2.542 billion, growth of 13%. From a geographic perspective, U.S. revenue in Q1 totaled $1.89 billion, up 13%, and international revenue totaled $649 million, up 16%. 12-month subscription revenue backlog, or CRPO, was $8.81 billion at the end of Q1, growing 15.5%. This was driven by continued customer expansion, bolstered by our AI solutions and growth from new customers. Total subscription revenue backlog at the end of Q1 was $27.29 billion, up 11%. Gross revenue retention rates remained strong at 97% in the quarter.

Net customer expansion rates remained consistent with what we observed last quarter, contributing roughly 60% of our subscription revenue growth for Q1. Non-GAAP operating income for the first quarter was $809 million, representing a non-GAAP operating margin of 31.8%. Margin strength was the result of the revenue outperformance, combined with favorable spend versus expectations. Q1 operating cash flow was $696 million, growth of 52%, and free cash flow for the quarter was $616 million, growth of 46% and in line with our expectations. We repurchased $1.6 billion of our shares during the quarter and had $1.3 billion in remaining authorization as of April 30. We ended the quarter with $4.4 billion in cash and marketable securities. Our headcount as of quarter end stood at 20,834 Workmates around the globe.

Now turning to guidance. We remain focused on driving adoption of our agentic solutions across HR and finance while expanding into adjacent market opportunities, providing a foundation for long-term growth. We are pleased with our performance in Q1, and we are reiterating our FY 2027 subscription revenue outlook of $9.925 billion-$9.950 billion, growth of 12%-13%. We expect Q2 FY 2027 subscription revenue to be approximately $2.455 billion, growth of 13%. We anticipate CRPO to increase between 13.5% and 14.5% in Q2. For Q2, we expect professional services revenue of $180 million. As Aneel mentioned, we are streamlining how we operate the business and are focused on investing in areas with the highest returns. We are increasing our FY 2027 non-GAAP operating margin guidance to 30.5%. For Q2, we expect a non-GAAP operating margin of approximately 30%.

Workday (WDAY) Q1 2027 Earnings Call Transcript

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