Workday: Powering Innovation and Growth with AI-Driven Solutions
Workday, a leading provider of cloud-based human capital management (HCM) and enterprise resource planning (ERP) solutions, has once again demonstrated its commitment to innovation and growth. In its recently released Q3 2025 earnings report, the company highlighted significant financial performance, underscoring its leadership in the market.
Carl Eschenbach, Workday's CEO, noted that the quarter saw a 16% increase in subscription revenue, with non-GAAP operating margins reaching 26%. This impressive growth is a testament to the strength of Workday's customer relationships across various industries. The company's AI-driven innovation and its ecosystem around the world have driven this success.
Workday has become the platform of choice for many organizations seeking to consolidate their operations, reduce total cost of ownership, and harness the power of AI in HR and finance solutions. The user experience provided by Workday is also a major draw, with employees benefiting from an intuitive and seamless interface.
The company's growth was evident in its full suite offerings, which saw significant expansion across geographies, industries, and segments. Government and higher education emerged as standouts in Q3, with the Defense Intelligence Agency, Lake County, Illinois, Maryland General Assembly, New Jersey Institute of Technology, and University System of Georgia all selecting Workday to modernize their systems.
Professional and business services have become the third industry to exceed $1 billion in annual recurring revenue for Workday, joining financial services and retail and hospitality. Notable wins included Advantage Solutions, Connells Limited, and Flight Centre Travel Group. In healthcare, Common Spirit Health, one of the largest nonprofit healthcare systems in the U.S., chose Workday, along with community health system Valley Children's Health care.
Workday's HCM solutions have been at the forefront of innovation in the future of work. The company secured wins with Brookshire Grocery Company, IOI Group, Pro Mac Royal Mail, and Team Health, among others. Continued investment in its financials business has driven demand for Workday's full suite offerings.
A notable 35% of new core customers in Q3 opted for Workday's full suite solutions. This demonstrates the company's ability to provide a cohesive platform that meets the needs of businesses and organizations across various sectors.
Workday's commitment to innovation was further underscored by its recognition as a leader in the 2024 Gartner Magic Quadrant for Cloud HCM Suites, cloud ERP, and financial planning software. This achievement solidifies Workday's position as a pioneer in the field of cloud-based HR and finance solutions.
As Workday continues to push the boundaries of innovation and growth, its focus on customer relationships, AI-driven solutions, and a comprehensive platform will undoubtedly propel it forward in the industry. With another quarter of impressive financial performance under its belt, Workday remains a force to be reckoned with in the world of cloud-based HR and finance solutions.
