Pleasanton-based Workday outlined its financial goals and artificial-intelligence strategy at its Oct. 13 analyst day in Las Vegas, highlighting about $600 million in annual recurring revenue from its agentic AI portfolio.
That figure, previously disclosed with the company’s August quarterly results, was more than triple the year-earlier level. Workday’s presentation identified Extend AI, HiredScore and Paradox as each contributing at least $100 million in annual recurring revenue.
The company said roughly 300 customers had signed agreements for Flex Credits, its usage-based purchasing model. Among at least 850 existing customers that bought at least one agentic AI product during the year ended July 31, AI purchases increased annual recurring revenue by about 12% on average.
Workday’s fiscal 2028 framework targets roughly $11 billion in subscription revenue, representing approximately 11% annual growth. It also calls for a non-GAAP operating margin of at least 33% and approximately $15 in free cash flow per share. These are company targets rather than completed financial results.
At the same conference, Workday announced an agreement to acquire C1.ai, which manages access to business systems for people and AI agents. Workday expects the transaction to close during its fiscal fourth quarter, which ends Jan. 31, 2027, subject to closing conditions.
Workday’s headquarters is at 6110 Stoneridge Mall Road in Pleasanton. The city’s fiscal 2024 financial report listed the company as its largest employer, with 5,399 employees at that time.
