Workday CEO Carl Eschenbach, announcing the earnings report, has revealed how the company’s AI focus is generating more customers and enhancing revenue.
Workday’s revenues increased 16.4 percent to $8.446 billion in fiscal-year ended January 31, 2025.
Workday’s AI-driven platform is transforming HR and finance operations, unlocking value for customers while reducing costs and driving efficiency.
The recent launch of the Agent System of Record enables organizations to manage both human and digital workforces, integrating AI agents from Workday and third-party providers.
Workday continues to expand its customer base, adding Bayer, Henkel, Iberostar, the state of North Carolina, and First-Citizens Bank & Trust Co. in Q4. Major industry players such as Cisco, Mondelez, Sutter Health, and Toyota have also deepened their engagement with Workday.
Serving over 11,000 customers globally, including more than 60 percent of the Fortune 500 and 30 percent of the Global 2000, Workday saw new Q4 wins with the city of Minneapolis, St. Louis County, and City University of New York.
The company secured its largest Workday Student deal to date with Minnesota State Colleges and Universities, benefiting 270,000 students and 14,000 faculty. Workday Student is gaining traction in higher education, with plans for expansion into Canada, Australia, and New Zealand.
The U.S. federal government presents a growing opportunity, driven by modernization initiatives. Workday’s recent wins at the DOE and DIA establish a strong foundation for future federal engagements. Financial services remains one of Workday’s largest sectors, with major Q4 expansions at Aon and Sallie Mae Bank and a significant core FINS deal with a Fortune 500 company.
The healthcare sector also delivered full-suite wins with North Mississippi Medical Center, Hackensack Meridian Health, and UnityPoint Health. Over 30 percent of new Q4 wins involved full-suite solutions, rising to 50 percent in the SLED and healthcare industries. Workday’s core HCM and financial customer base now exceeds 6,100, with more than 2,000 leveraging the full suite.
AI focus
AI remains a central driver of customer growth, with over 30 percent of Q4 expansions involving AI-powered solutions such as Extend Pro, Recruiting Agent, Evisort, and the newly launched Talent Mobility Agent. Extend Pro, which enables AI application development on Workday’s platform, saw ACV double quarter-over-quarter.
Developer Copilot, a key feature of Extend Pro, is delivering productivity gains of over 50 percent, allowing faster application development. Recruiting Agent achieved exceptional growth, securing wins at BP, Genpact, and others, with new ACV nearly doubling from Q3. Customers are increasingly investing in AI-driven solutions that provide strong ROI, helping drive business growth.
Workday’s AI strategy prioritizes customer value, integrating early-gen AI features into core offerings. Now that AI is delivering measurable ROI, new monetization opportunities are fueling long-term growth. With over 1 trillion transactions processed in FY 2025, Workday’s AI operates on one of the largest and cleanest HR and financial datasets, providing insights.
The introduction of role-based AI agents for contracts, payroll, financial auditing, and policy marks a shift beyond task-based automation, offering multi-skilled AI assistants that enhance operational efficiency.
Workday’s AI-driven innovation addresses the growing challenge of AI sprawl, where enterprises struggle to manage fragmented AI deployments. The Workday Agent System of Record provides a unified platform for managing all AI agents, whether built by Workday, customers, or partners. This initiative has garnered strong interest from customers and technology partners seeking to mitigate enterprise AI risks.
Partner collaborations continue to drive growth, with 15 percent of Workday’s net new ACV in Q4 sourced through partners, up from 10 percent in the previous quarter. Workday signed five strategic partners in Q4, bringing the total to 72 partners building and selling on its platform. Additionally, Workday’s partnership with Randstad integrates Workday Recruiting Agent with the world’s largest talent data pool to enhance hiring efficiency.
Regional expansions highlight Workday’s growing global footprint. In the DACH region, German enterprises like Bayer and Henkel have adopted Workday’s core HCM. In APAC, Binance, Nine Entertainment, and JINGDONG are now Workday customers.
Leadership changes include the appointment of Gerrit Kazmaier as President of Product and Technology, bringing extensive AI, data, and enterprise expertise from Google and SAP. These developments position Workday for continued leadership in AI-powered enterprise solutions, delivering measurable value to organizations worldwide.
Baburajan Kizhakedath
