WORKDAY INC (+) : FQ1’27 postview: AI helping new ACV to accel this year

Research evidence excerpt

WORKDAY INC (+) : FQ1’27 postview: AI helping new ACV to accel this year

EQUITIES

SOFTWARE

WORKDAY INC OUTPERFORMPRICE* USD121.9  TARGET PRICE USD160 (UPSIDE 31%) TARGETunchangedPRICE EPS01/28e5% EPS01/29e7%

FQ1’27 postview: AI helping new ACV to accel this year

1Q growth exceeded expectations; company confidence in new ACV acceleration this year22 MAY 2026

Securities Research Report Workday shares rose +11% after hours, beating Cons. growth expectations and providing detail on

Production time: 05:46* (London time) its AI strategy. In our earnings preview (Link) we highlighted improvement in our quarterly reseller

Research Analysts & Publishing Entities checks, and positive commentary from Kainos (WDAY’s largest intl. partner) which reported healthy

Stefan Slowinski Workday Services growth. 1Q results followed through with 14% Sub. revenue growth, ahead of

BNP Paribas London Branch guidance for 13%. 1Q was the best first quarter for new ACV growth in 5 years, and the company is(+44) 203 430 8549

stefan.slowinski@uk.bnpparibas.com confident in accelerating new ACV this year after slower ACV growth in FY26. Workday maintained

its FY27 guidance for 12%-13% growth, and raised EBIT margin (non-GAAP) guidance to 30.5%Keeler Patton

BNP Paribas Securities Corp1 from 30.0%.

(+1) 646 342 6138

keeler.patton@us.bnpparibas.com AI story taking shape for investors with $500m of agentic AI ARR

Workday reported approaching ~$500m of agentic AI ARR, up from an estimated ~$400m at 4Q,Daniel Wang

BNP Paribas Securities Corp1 and now comprising ~5% of group ARR. The company now has 20 organic agents in GA/EA, and

+1 646 785 3326 the number of customers using agents has more than doubled q.q. to >4,000 of Workday’s ~11,500

daniel.wang@us.bnpparibas.com

customers.