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

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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Ladies and gentlemen, welcome to Workday's Fourth Quarter Fiscal Year 2026 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 Q&A, please limit your questions to one. I will now hand the call over to Justin Furby, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Welcome to Workday's Fourth Quarter Fiscal 2026 earnings conference call. On the call, we have Aneel Bhusri, our CEO, Gerrit Kazmaier, our President, Product and Technology, Rob Enslin, our President, 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 documents we file with the Securities and Exchange Commission, including our fiscal 2025 annual report on Form 10-K and our most recent quarterly report on Form 10-Q 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 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 first quarter fiscal 2027 quiet period begins on April 15th, 2026. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal 2025. With that, I'll hand the call over to Aneel.

Thank you, Justin. Thanks to everyone for joining us today. It's really nice to be back with all of you. Before I get into my remarks, I wanted to thank Carl for his service to Workday over the past three years. He brought the operational rigor and discipline that we needed at the time to make Workday a larger and more global company. That work helped us set the foundation for this next chapter for Workday. We're all grateful to him. In terms of chapters, we talk internally about this next chapter of Workday as chapter four. First was the founding of the company by Dave and myself back in 2005, based on a new idea of HR and finance in the cloud and built on a set of core values around employees, customers, innovation, integrity, and fun.

The second chapter was a period of hypergrowth that led to our success with many organizations around the world and product and technology leadership in HR and finance. The third and most recent chapter, which started in 2023, was all about operational excellence and efficiency as we grew into a Fortune 500 global company. Well, chapter four is now upon us, and it's a return to focusing on innovation. When we founded Workday, we transformed the enterprise by reimagining HR and finance in the cloud. Now we have the opportunity to transform it again by reimagining HR and finance with AI and taking advantage of this new vector of growth. You've all heard the narrative out there that HR and ERP will be replaced or relegated to the background by AI. I personally just don't see that happening. Our application domains are really, really hard to build.

I've been working in the HR and ERP space for over 30 years. These are true systems of record that must process transactions with absolute accuracy and speed, enforce complex security models, and comply with statutory and regulatory requirements all over the world. That kind of complexity is very hard to replicate. No amount of vibe coding is going to produce an HR or an ERP system. Importantly, our underlying business processes are deterministic by nature. There is a start and end to a business process. Its goal is to deliver consistent, audible outcomes. AI, for all of its incredible capabilities, is probabilistic by nature. It reasons, predicts, and recommends based on patterns and likelihoods. Maybe it'll eventually become a state machine, a system that follows the same steps and gets the same result every time, but it is not there today.

You can't have probabilistic outcomes in running a payroll. It needs to be 100% accurate and completed 100% of the time. What is the future? It's the marriage of deterministic enterprise apps with probabilistic AI that leads to three things: a redefined user experience that is prompt-based, a greatly improved business process automation execution platform with work done by agents and humans, and lastly, much deeper AI-generated insights. Taken together, these changes will lead to much better business outcomes and deliver far higher ROI for our customers. As you'll hear from Gerrit, this hybrid world and architecture is exactly what Workday is building today, marrying the best system of record for HR and finance with the reasoning capabilities of domain-specific LLMs. That's the future. It's like peanut butter and jelly.

They just go together. It's all rooted in the trust we've built with our customers over the past 20 years from managing their systems and their most critical data. All you have to do is look back at the past year to know that this hybrid world is coming to fruition. We experienced accelerating agentic AI adoption across the solutions we acquired: HiredScore, Evisort, Paradox, and most recently, Sana. They all had great Q4s. I'm pleased to say that Sana is now seamlessly integrated into the Workday stack. It's very cool. As we move into fiscal year 2027, what should you expect from us? Our core enterprise apps in HR, finance, and student will continue to thrive, recognizing that in some areas like HR, we have high levels of market share. The growth will come from new apps sold to the customer base.

The accelerating growth will come from the agents we built on top of Workday, both inorganic and organic. If FY26 proved that customers trusted Workday to buy our acquired agents, we believe that FY27 and beyond will prove that customers will buy our organically built agents that are in early access today. Across the board, these new agents are deeply embedded into the Workday core, are meaningful in their scope, and have significant ROI attached to each and every one of them. Those of you who know me know that I'm an unabashed optimist. I truly believe that our investments in agentic AI will enable Workday to re-accelerate growth, increase customer satisfaction, and set us up for long-term leadership. I will end by saying that I'm excited to be back.

This is a fun time to be a product person. Now I'll turn it over to my friend and leader of all things ERP and AI, Gerrit

Thanks, Aneel. Hello, everyone. Aneel described the opportunity really well. AI is changing how work gets done. We are unlocking its transformative power for HR and finance. The foundation for enterprise AI is taking the right action inside a governed business process with the right permissions, oversight, and policy configuration, whether that's hiring and onboarding, payroll, or the financial close. Simply connecting powerful language models directly to enterprise data, well, that risks creating lawless agents that may have vast capability, but they have zero guardrails. We are building Workday as a context and tools engine for AI with deep HR and finance data, a business process framework, and a strong security model to deliver enterprise-grade accuracy and business outcomes. Based on this, we leverage AI for entirely new business processes.

We built for enterprise AI transformation, where, for instance, every employee can have a career coach who develops them along their journey. Every sales team can have an AI contracts agent specialized in every engagement. Every candidate can have an AI personal job search agent, every finance professional, their personal AI analyst, and every employee, their own AI HR business partner agent. Now let's look at some real customer AI usage in Workday. We measure every time an AI model produces a result in Workday as an AI action. In full year 2026, we delivered 1.7 billion AI actions across the Workday platform, and this is all organically developed AI in Workday. You can also see this incredible momentum commercially. In Q4, we generated over $100 million in new ACV from emerging AI products.

That's growing over 100% year-over-year, and our overall ARR from these solutions is now over $400 million. We expect AI usage and business impact to continue to expand meaningfully in FY27. Today, we have 12 new organically developed role-based agents that are now starting to move into general availability for all our customers, and more than 400 customers are already using them and get real ROI. With our self-service agent, early access customers have reduced HR case volume by 25% and increased their employee productivity by 20%. With our R1 release in March, in addition to our self-service agent, planning agent, deployment agent, payroll agent, and business process optimize agent, are all entering into general availability for all our customers. Here is another real highlight for us, the release of Sana Core and Sana Enterprise into general availability.

Sana Core brings conversational AI directly into Workday, so employees can get answers and complete tasks using Workday agents. Sana Enterprise extends the same experience beyond Workday by connecting enterprise tools like Outlook and Google Drive and so many more, so employees can find information, create agents, and automate workflows all in one place. That will create an entirely new way for our 75 million users to engage with Workday. Sana Core and Sana Enterprise went into GA on February 15th, which we executed with world-class speed from project start to finish in just 3 months. We used AI to dramatically accelerate our product innovation cycle time. We accelerated key API development by roughly 30X on Workday's core platform using AI. More than 75% of our software engineers are using AI coding assistants, and more than 50% of the committed code is AI-generated.

We have seen an incredible 22% growth in engineering output over the last 6 months, measured by the number of code updates we delivered. Our strategy is to build new business processes designed around virtually unlimited AI reasoning to automate entire business processes into the background with AI agents, and to deliver a beautiful AI-first user experience that brings super intelligence to work. With that, I'll turn it over to Rob.

Thanks, Gerrit, and hello, everyone. It's great to be on the call today. As we look back at Q4, one thing is very clear: our customers trust Workday with the parts of their business that have to run flawlessly, from payroll to closing the books. That trust continues to show up in our high retention rates and in customers expanding the use of the platform year after year. With over 11,500 global customers, expansions remain our largest growth engine. In the quarter, we expanded with customers like Anthropic, Ally Financial, and Otis Elevator. In Q4, AI played an increasingly meaningful role. It was involved in roughly half of our customer base transactions, and expansion deals that included AI were nearly 50% larger on average. While it's still early days, we've seen great initial traction with Sana since the acquisition closed in November.

We're starting to see customers go all in on agents and agentic workflows. Accenture is a great example. They're reinventing HR and recruiting at scale, using our AI solutions to elevate the employee and candidate experience while driving improvements in productivity, speed, and agility. Accenture has also been a key design partner for us, helping to develop our agent system of record. With our Flex Credits pricing model, customers can better align their spend with the value they're getting. Accenture, Nike, and Merck are among the first of nearly 50 customers signing on to use our new model. We expect Flex Credits adoption to continue to grow as we expand our AI roadmap and mature the model. We're also investing in our customer base motion, including forward-deployed engineers, to activate agents faster and with less friction for our customers.

Turning to net new, we formed several strategic relationships in the quarter, including Boston Children's Hospital, the New York State Unified Court System, and Sargent & Lundy. We're seeing particularly strong momentum in net new medium enterprise deals. ME customers drove roughly 60% of net new ACV in FY26. To accelerate time to value in this segment, we're expanding Workday Go globally, helping customers get up and running faster in a more standardized way. At the same time, some net new large enterprise deals are taking longer to close, particularly in Fed, SLED, and Healthcare and across parts of the commercial market. While this impacted the volume of net new deals that closed in Q4, most opportunities remain active in our pipeline, and a few have already closed in Q1. As we look at our international business, we see significant opportunities ahead.

We're making good progress in Canada, EMEA, ASEAN, and Japan. We've been investing in local talent, partners, product localization, and new routes to customers with Workday resellers. While there's still work to do, we believe international will become a much bigger part of our growth story over time, and partners play an important role in scaling. In Q4, about 25% of our net new ACV was sourced through our partner ecosystem. They're helping customers go live faster, expand more efficiently on Workday, and enhance the value of our platform. Workday Wellness is a great example of how we're expanding employee services while creating new revenue streams with partners. In Q4, we welcomed Lyra Health, Empathy, and Airvet to the program.

As we move into FY27, the team and I are focused on turning all of the innovation Gerrit talked about into tangible outcomes for our customers, faster time to value, broader adoption, and deeper platform commitments. We are well positioned to build on this momentum and play an even more important role as customers modernize their HR and finance operations. With that, I'll hand it over to Zane to share more details on our results.

Thanks, Rob. Thank you to everyone for joining today's call. As Rob mentioned, our results this quarter reflect the deep trust customers place in Workday to manage their most critical assets. This is creating durable expansion opportunity, particularly as adoption of our AI solutions accelerate. Turning to results, subscription revenue in Q4 was $2.360 billion, up 16%, and full year FY26 subscription revenue was $8.833 billion, growth of 14%. Revenue in the quarter benefited from the successful delivery of the DIA contract, which added nearly a point to Q4 subscription revenue growth. Total revenue in Q4 was $2.532 billion, growth of 15%, and for the full year was $9.552 billion, up 13%.

U.S. revenue in Q4 totaled $1.91 billion, up 15%, and international revenue in the quarter was $626 million, growing 13%. For the year, U.S. revenue was $7.18 billion, up 13%, and international revenue was $2.38 billion, up 12%. 12-month subscription revenue backlog, or CRPO, was $8.83 billion at the end of Q4, growing 15.8%. Total subscription revenue backlog at the end of Q4 was $28.1 billion, up 12%. Average contract duration in the quarter was down year-over-year, driven by a higher mix of renewal and customer base activity. Gross revenue retention rates remained strong at 97%, demonstrating the mission-critical nature of our platform and our high customer satisfaction.

In addition, net expansion rates remained consistent through FY26, contributing roughly 60% of our subscription revenue growth for the quarter and the full year. Non-GAAP operating income for the fourth quarter was $774 million, representing a non-GAAP operating margin of 30.6%. Margin strength was a result of solid revenue growth, ongoing efficiencies we are driving across the business, and a slightly slower ramp in hiring. Full-year non-GAAP operating income was $2.82 billion, reflecting a non-GAAP operating margin of 29.6%. Q4 operating cash flow was $1.28 billion, resulting in full-year operating cash flow of $2.94 billion, growth of 19%. Free cash flow for the quarter was $1.22 billion, and for the year, it was $2.78 billion, up 27%.

We repurchased $1.5 billion of our shares during the quarter and $2.9 billion for the full year. We had $2.9 billion in remaining authorization as of quarter end. We ended the year with $5.4 billion in cash and marketable securities. Our headcount as of January 31 was 21,070 workmates around the globe. Now turning to guidance. We are focused on driving adoption of our agentic solutions, including Sana, Paradox, and other Workday agents, as well as our Data Cloud, which ramp in availability throughout the year. We expect FY27 subscription revenue of approximately $9.925 billion-$9.950 billion, growth of 12%-13%. We anticipate Q1 FY27 subscription revenue to be approximately $2.335 billion, growth of 13%.

As we mentioned last quarter, this year's sequential performance is impacted by the DIA contract, which added nearly a point to Q4 subscription revenue growth and is not expected to continue in Q1. We expect CRPO to increase between 14.5% and 15.5% in Q1. We expect subscription revenue to increase roughly 5% sequentially in Q2. We anticipate FY27 professional services revenue of approximately $710 million as we continue to leverage our partner ecosystem. For Q1, we expect professional services revenue of $180 million. We expect FY27 non-GAAP operating margin of approximately 30%, and for Q1, we expect a non-GAAP operating margin of 30.5%. This outlook incorporates an accelerated pace of AI investment across both product and go-to-market.

We expect the Q1 GAAP operating margin to be approximately 19 points lower than our non-GAAP operating margin and the full-year FY27 GAAP operating margin to be approximately 18-19 points lower. The FY27 non-GAAP tax rate is expected to be 19%. We expect FY27 operating cash flow of $3.450 billion and capital expenditures of approximately $270 million, resulting in free cash flow of $3.180 billion, growth of 15%. As Aneel mentioned, we are focused on what we believe is a generational opportunity for AI to revolutionize our HCM and finance solutions, as well as open new markets. While we remain committed to our medium-term subscription revenue growth targets, we are prioritizing incremental investment in our agentic AI roadmap to capture a larger market opportunity.

We remain focused on both GAAP and non-GAAP margin expansion, albeit at a slower pace in the near term than what we previously communicated. We believe this investment will drive a more durable growth profile that optimizes for long-term operating profit and free cash flow. We look forward to sharing our progress over the next several quarters. With that, I'll turn it back over to the operator to begin Q&A.

Thank you. We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, press star one a second time. If you're called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. To be able to take as many questions as possible, we ask that you please limit yourself to one question. Again, it is star one if you would like to join the queue. Our first question comes from the line of Mark Murphy with J.P. Morgan. Your line is open.

Thank you so much, Anil. Welcome back to the CEO role. I'm curious, how you know, how you picture shaping the next chapter for Workday, specifically as it relates to differentiating the AI strategy. For example, I'm wondering if you see some ways to push a more aggressive,

pace or a more organic, you know, AI product roadmap, maybe trying to achieve the zero day close kind of a vision or agentic consolidation, or, you know, some other type of truly breathtaking outcomes?

Workday (WDAY) Q4 2026 Earnings Call Transcript

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