Workday Soars: 13% Subscription Revenue Growth and a Non-GAAP Operating Margin of 30% in Q1 FY2026
Workday, the renowned cloud-based human capital management (HCM) and financial management platform provider, has just announced its impressive first quarter fiscal year 2026 results. In a conference call on May 22, 2025, Carl Eschenbach, CEO of Workday, shared the company's outstanding performance, fueled by strong customer adoption across key verticals, geographies, and customer segments.
Notably, Workday achieved 13% subscription revenue growth in Q1 FY2026, surpassing industry expectations. This remarkable increase is a testament to the company's continued success in meeting the evolving needs of its customers, who are seeking innovative solutions to drive efficiencies, agility, and growth in today's dynamic market.
Carl Eschenbach emphasized that Workday's value proposition remains highly relevant in today's market, where CEOs have three key priorities: driving efficiencies, being agile and responsive to market shifts, and unlocking growth with innovation. The company's unified approach, which combines AI at the core with human capital management and financial management on one platform, reduces total cost of ownership and enables customers to move faster with greater precision.
Workday's customer highlights for Q1 FY2026 are equally impressive. The company established new HCM relationships with United Airlines, Pilot Travel Centers, and [indiscernible] Insurance Company, among others. It was another strong quarter of expansions with customers such as FedEx, CBS Health, and Chipotle. Workday's investments in financial management also continue to pay off, with solid growth in both net new ACV (annual contract value) and customers.
The company's AI innovation is gaining traction, with new ACV across its AI products more than doubling year-over-year in Q1 FY2026. Approximately 25% of customer expansions in the quarter included one or more of these products, such as Recruiting Agent, Talent Mobility Agent, Evictor, and Extend Pro. Notable customers that have selected Workday's AI products include Visa, LabCorp, and [indiscernible].
Carl Eschenbach also highlighted the momentum being built with the office of the CIO, which further underscores Workday's commitment to innovation and customer success.
