Workday is embedding AI into its HR and finance solutions, positioning itself as a leader in helping organizations navigate the AI revolution.
The company’s approach focuses on leveraging its dataset of over 70 million users and 800 billion annual transactions to deliver AI-powered solutions that simplify operations, enhance user experiences, and drive measurable outcomes for businesses, Carl Eschenbach, Chief Executive Officer of Workday, said.
Workday posted 15.8 percent rise in revenue to $2.16 billion in the third quarter of fiscal 2025 driven by 15.8 percent increase in subscription revenues at $1.959 billion.
Workday reveals that AI is a growth driver. Over 30 percent of customer expansions in Q3 included AI solutions like Talent Optimization, Extend Pro, and Recruiter Agent. Why there is demand for Workday’s AI solutions? Workday says Talent Optimization delivers tangible outcomes, such as reducing turnover by up to 39 percent.
Recruiter Agent, another AI-capable solution from Workday, saw record-breaking success, quadrupling new ACV compared to Q2, and boosting the average selling price of core recruiting solutions by nearly 150 percent.
Illuminate, Workday’s AI suite, introduces agents that transform complex HR and finance processes, such as recruiting, expense management, and succession planning.
New agents like Expenses Agent (launching soon) and Optimize Agent (2024) address bottlenecks and inefficiencies, driving higher productivity.
Workday’s collaborations with Salesforce and Microsoft M365 Copilot enable agent-to-agent communication for employee self-service.
The enhanced Workday Assistant, powered by generative AI, improves efficiency, with some customers reporting a 30 percent reduction in HR case volumes.
The acquisition of Evisort unlocks insights from unstructured business data, such as contracts and invoices, empowering faster decision-making.
Workday says Extend Pro allows organizations to build tailored AI-first applications. It has become one of Workday’s fastest-growing products, doubling ACV compared to last year.
Over 1,000 customers and more than 40 partners are building on the Workday platform, with partners sourcing 10 percent of net new ACV.
Investments in financials are paying off, with 35 percent of new core customers opting for full-suite solutions in Q3.
Customer Wins
Approximately 90 percent of wins in Government and Higher Education sectors were full-suite implementations, showcasing strong demand for comprehensive solutions.
New customers include Lake County Illinois, Maryland General Assembly, New Jersey Institute of Technology, and the University System of Georgia.
The Defense Intelligence Agency also expanded its engagement with Workday.
Professional and Business Services sector has joined financial services and retail/hospitality as industries generating over $1 billion in annual recurring revenue. New customers include Advantage Solutions, Connells, and Flight Centre Travel Group.
In Healthcare sector, notable wins include CommonSpirit Health, one of the largest U.S. nonprofit healthcare systems, along with Community Health System and Valley Children’s Healthcare.
In Retail, and Manufacturing, Workday added companies like Brookshire Grocery Company, IOI Group, ProMach, Royal Mail, and TeamHealth to drive their HR and finance transformations.
Workday aims to achieve mid-teens subscription revenue growth and expand operating margins to 30 percent by FY2027. Its focus on delivering AI solutions and streamlining operations underscores its leadership in the AI transformation of HR and finance, empowering organizations to thrive in the future of work.
Baburajan Kizhakedath
