WDAY

Workday delivered a solid Q3 with 15% subscription revenue growth and 28.5% non-GAAP operating margin, demonstrating resilience amid a complex macro environment and continued execution on its AI-first strategy. The company reported $2.244 billion in subscription revenue and $2.432 billion in total revenue, with 12-month CRPO reaching $8.21 billion, up 17.6%. Management emphasized that the narrative around AI disruption from venture-backed startups is overblown; instead, enterprises are consolidating around trusted platforms with clean data, security infrastructure, and proven ROI. Workday's AI products contributed 1.5 points of ARR growth this quarter alone, with over 75% of core customers now using Workday Illuminate AI and more than 1 billion AI actions executed year-to-date. The company closed two significant acquisitions, Paradox in October and Sana in the quarter, positioning itself as an enterprise AI platform rather than a point-solution vendor. Paradox, an AI-native recruiting platform, is already generating revenue within weeks of close and can be sold into non-Workday environments, opening a new land motion. Sana, a leading knowledge management and agent orchestration platform, will serve as the AI experience layer across Workday and is driving exceptional early customer demand. Management also announced the intent to acquire Pipedream, a low-code integration platform with 3,000+ connectors, to enable enterprise-wide AI orchestration beyond HR and finance. International markets showed particular strength, with EMEA, APAC, and Japan all delivering solid results; notably, healthcare became Workday's sixth industry to exceed $1 billion in ARR. The company maintained confidence in its 13%