Name: Financial Analyst Day 2025
Uploaded: 2025-09-17T00:08:06.805Z
Duration: 2 h 51 min 56 s
Description: Financial Analyst Day 2025

Transcript for "Financial Analyst Day 2025": Please find your seats. Our program will begin in fifteen minutes. Please find your seats. Our program will begin in ten minutes. Our program will begin in five minutes. Please find your seats and silence your devices. Our program will begin shortly. Please find your seats and silence your devices. Please welcome Investor Relations Vice President, Justin Furby. Hello. Hello. Thank you, everybody. Welcome. Welcome to Workday Rising. Welcome to Financial Analyst Day. This is our biggest conference ever. I don't know what the growth is, but I think it's pretty significant. I know this is our biggest Analyst Day event, which is which is good because this is by far the largest room that we've ever had. So thank you for not making it look too ridiculous and for showing up. We are we are glad that you made the trip out in all in all seriousness. This is an important event for us. We try to make it as open as we can for you all. I hope you took on the innovation keynote this morning, saw a lot of the organic and some of the inorganic innovation that we're delivering. I hope you spent some time with customers and and prospects and and I hope you didn't spend too much time with the employees because try to keep them out of trouble. And, for those of you that are not here, that are on the webcast, thank you as well for listening in. We hope to pack a lot in over the course of the next couple of hours. You're gonna hear from several members of our leadership team including Carl, Zane, Rob, Garrett, Peter, and Ashta on the innovation front. We're gonna walk through strategy. We'll talk about a lot of the innovation that we're delivering, which hopefully you were able to see this morning. We'll share some of that today as well. Rob's gonna talk about how we're going to market as we think about the next wave of growth and and Zane and Carl will come on, and talk about how that all comes together in terms of a durable financial model that drives both growth and continued margin progression. We will then wrap with Q and A so we should have plenty of time to get as many questions here in the room as possible. And then for those of you that are here in the room, at the end of the event, we will have, a networking event outside these doors with many of our leadership, team as well. So before I bring Carl on, I do have to go through the obligatory safe harbor statement, which I won't read in full. But in summary, some of the matters that we'll be discussing today do include forward looking statements, which are subject to risks, uncertainties, assumptions, and actual results that may differ. Further information on risks that could affect our results are included in our most recent filings with the SEC, which are available on our IR webpage. So, with all of that out of the way, it is my pleasure to bring on stage our fearless leader, our CEO, Carl Eschenbach. Hey, Justin. Thanks, Carl. How are you? Good. Welcome. Welcome. Good afternoon, everyone. How's everyone doing? Alright. Let's can we treat I mean, when you when you say that at the conference, so where you have 30,000 people, like, yeah. How you doing? I think they were ins man. I think they were Maybe Justin is I think they were really inspired by my opening call. I think that's what it was. I like you reading the disclaimer. I think it's probably because, you know, I was thinking about this walking over here this afternoon from the hotel. I think in the in the last month, we've been together, a lot of us, now three times. Earnings less than a month ago. Some of you were with us, at Cash's, big Goldman Sachs conference last week, and here we are again today. So it's exciting to see all of you, and thanks for those joining us online. Great. So we're gonna do it a little different. We'll do a little more informal. We're gonna hit some of the kind of big picture areas that we get a lot of questions around. But maybe before we do that, Carl, just kick us off. It's been you're coming up on year three. I know I've been here for about six years, so I've seen sort of three years before and the three years since you've come on and a lot has changed, right? I think as a company we're moving a lot faster. A lot of new talent has come into the company. Our growth profile and where we drive growth has has really evolved in a lot of ways. So maybe share a few top two or three things, just observations over the journey so far. Yeah. Listen, Justin, it's been an incredible three years. It'll be three years in November, December. And I'm so grateful that my exec chair and cofounder, Neil, kept nagging at me, if I'm honest, for many years to say, come and join me on this journey and move from the board into a role in serving the company in an operating capacity. And I couldn't be more grateful and thankful, for him not stopping that pursuit. It's been an incredible experience. And I couldn't be prouder, if I'm honest, Justin, of what you and all of the workmates around the world have done over the last three years. I remember doing a couple calls with a lot of you when I first joined, and one of the things I immediately started to talk about was what I described as the diversity and durability of the business. And I think it's something today, if you look at our business today, we don't have a single, if you will, industry. We don't have a single market segment. We don't have a single geography in the world. That is our anchor tenant for growth. We truly serve all market segments now. We're really pushing international. We've leaned heavily into, if you will, going into industries and verticals. We've leaned into the federal government. You'll hear more about that today. And we recognize that we have a really good asset in our financials platform and with it pulls through a full suite approach to how we sell into the market. And I think that's all really started to materialize over the last three years. And at the conference this week, and you'll hear Garrett and the amazing team we have on the product and technology side, and Ashna and Peter come up here and talk about, we have big aspirations going forward. We want to be and we aspire to be the number one enterprise AI platform to manage your people, your money and your agents. And we think we're uniquely positioned to do that, And I can't wait to share more with the folks here. For those of you who joined us earlier this morning, you saw the innovation engine is alive and well here at Workday. Probably bigger, bolder, more aggressive than it's ever been before. And the last thing I'd say is talent. Yeah, we have some incredible talented people at Workday that have been here a very long time. And we've been able to I call us sometimes a talent magnet been able to, you know, recruit and ask people to join us on this journey. And as we've done that, the last thing I'd say as an observation is we've accelerated everything we're doing, whether it's how we build products, how we go to market, how we partner, how we engage with our customers. We're getting great talent, and one of the greatest business strategies I'd like to talk about is speed, and we're moving faster than ever, even at scale. That's some, I guess, initial observations. Yeah. That's great. So you you kinda teed this up already, and I think a lot of folks hopefully joined the keynote this morning. But maybe share some of the we had a lot of announcements that obviously came out today. Maybe share a few that are sort of top of mind that you think are really important as we think about where we're going. Yeah. So you see here on this slide, and again, I don't want to steal the thunder, the amazing people coming up here next, but we really leaned in to this year's innovation keynote. And I think displayed probably the most bold, bodacious vision we've ever outlined for technology innovation. We clearly are bringing to market the most powerful agents that serve our markets in finance, in HR and in industry. We actually announced some industry agents today, as well as planning agents. And what I hope everyone recognizes in the industry right now, it's not about the quantity of agents you're bringing to market. It's the quality of agents. And they have to drive real business value. They have to drive real outcomes. And that's what we displayed today. We displayed the ones we announced last year that are readily available, and then we talked about a whole bunch of new ones we're bringing to market as well. And we talked about the expansion of our agent system of record, today. Next, we also want to make sure no customer is left behind in this transition with AI. And what I mean by that is we are doubling down our investment on our core products. Because a lot of times these days, everyone goes student body right and only talks about AI, when in fact, we have 11,000 customers strong who are using our core products, leveraging it more than ever and asking us more. They run their business on Workday. They pay their employees on Workday. They provide benefits, and we need to continue to lean into that going forward to make sure they're getting the best value they can out of the existing platform. And then last, like we're blowing up, you know, the aperture on the Workday platform. And today was an amazing example of announcements where the largest companies, most innovative companies in the world are coming together with us to be part of the Workday platform. Whether it was today, we saw Satya on stage with us in Microsoft, right? We saw Microsoft come out and talk about engaging and building an agent on top of Workday. We saw Snowflake be part of our data cloud that we announced, same with Salesforce, same with Databricks. And I can go on and on. So the platform is resonating and today was just a glimpse into what we think is possible in the future. And then last, you probably all saw by this point, we made a very strategic and what could potentially be one of the most impactful acquisitions we've made in the history of Workday with Sana Labs. Sona Labs is a way for you to enter Workday, to start Workday, and be in Workday for your entire Workday. This is the new front door. The new UI for Workday is AI. And Sonae Labs is gonna give us that. And it's gonna be super powerful and they'll hear more about that shortly. Yeah. That's great. Maybe just staying, Carl, on the platform. I know that's been a big part of kind of your sort of vision and where you want to take the company. Talk a little bit about what that means as we continue down this path. I know we're going to talk about the ecosystem, but just what does it mean for Workday in terms of our revenue, just the way we engage customers and partners? Yeah. Listen, I grew up most of my career before coming to Workday, three years ago in companies that were truly platform companies, and I love platform companies. In enterprise software, I think the holy grail is to become a a platform company. It means people are building in, through, and on top of you. And that's what we want to become. At the same time, being a great applications company. There are very few companies in our industry who can say they have both the best applications and they're a platform company, and we're one of them. And it just continues to proliferate from here. Earlier this I guess a couple of months ago, we announced Flowize. Now we're allowing people in a low code way in an open source platform to build agents on top of Workday. The economy just continues to grow around us because we are a platform. Just look at our partner ecosystem, Justin. A year ago, if we were sitting here, we'd be talking about 600 to six fifty partners in our ecosystem. Today, we have over 1,300. We have new partnerships we're announcing on a regular basis I'll speak about. And as we grow our partner ecosystem, our TAM starts to expand as well and create value. Value for Workday, value for our partners and value for our customers. Yeah. The TAM is an area where I think most of folks in this room know, look, it's a large ERP is a large market, but maybe sort of dimensionalize it a little bit more in terms of how you think about attacking it. What are kind of the areas that, you know, where we're focused around? Yeah. So this first slide I'm going to share with you is something we update every year here at Financial Analyst Day. Our TAM last year, if we sat here, we showed you a number about $160,000,000,000 so it's growing slightly over 10% on an annualized basis. So in our core platform of products that we offer, our TAM has expanded this year to be about $188,000,000,000 across HCM, across financials, across planning and all the associated products that we offer in the market and we have product market fit. Now what we're doing to really attack this, Rob will spend a lot more on this, is we're going at it both at the product side and on the go to market side. On the go to market side, we're leaning heavily into the medium enterprise. We're leaning into U. S. Federal. I just walked over from a U. S. Federal Forum summit they're having across the street. We're focusing internationally on how to build more aggressively our go to market strategy and leverage partners. We're going vertical in industries. And we're also leaning heavily, more heavily than ever, into serving frontline workers that are out there, like the acquisition, for example, of Paradox. So this is an incredible opportunity for us, but it's a very small opportunity when you think about what we have in the future, because the next one is to expand that ecosystem. And as we like to talk about it, we talk about an ecosystem that's becoming an economy. Now as I said, we have 1,300 partners. 2,500 of them are here this week at Rising, record number of partners here. And last year or last quarter, it drove 20% of our net new ACV, something we disclosed to you at our Q2 earnings call. And we're creating new partnerships. Not one, maybe one out of all of these, and it's just a smither of them, was on this slide last year. These are new types of partners we're forming as we expand our ecosystem to truly become an economy, like we've done with DailyPay, our most recent partnership with Chime. We've done a wellness platform, so we can bring all of these benefits that today our customers need and want to them through the Workday platform. This just continues to expand. And then there's one more layer, there's one more wrapper, I think, that expands it even further. It's AI. And AI is an accelerant for Workday. It gives us an incredible opportunity to provide more value for Workday, our partners and our customers. This is how I think about expanding from a core that we sit here and talk about in years past to an economy to leveraging AI in the future. Yeah. I want to talk about AI in a couple of ways. I know there's a lot of anxiety. I can sort of feel the anxiety coming this way from the stage, around it and what it means for enterprise software and and just businesses like ourselves. So talk about I know you have a very strong position around this, so share what that what that looks like. And then I wanna talk a little bit more about how that what that means for us from a monetization. Yeah. I think I shared this. Where's Kash is here? He asked me this on the earnings call. He asked me at the conference. And I hate to be so direct, but I think this whole narrative that's out there in the market that AI is eating the software world is completely overblown and completely overhyped. I don't think it's true at all, Jason, or Justin. I just don't believe it. In fact, last I checked, AI is software, Right? And data is important when it comes to training AI to drive good results. And I actually think for some people, we're not naive, AI will be a headwind. Right? For us, it's a tailwind. We're uniquely positioned with 11,000 customers, 97% retention rate. We sit, but we have the opportunity to sit on 75,000,000 desktops. I think we are uniquely positioned as well as anyone in the industry to take advantage of this tectonic shift in transition we're going through. That's what I believe. And let me give you a picture that kind of represents what's happened in the past and what we think will happen in the future. Go back to on premises software, the old ERP days, where everyone talked about everything's on premises, and then the world was moving to cloud. And as that happened, the software world was gonna be in trouble. Actually, what happened, there's still on premises software, and there's a new software model called SaaS. It expanded. And, oh, by the way, something else happened. Look at the growth in head count. The headcount in our economy only grew faster. And then if you think into the future, the SaaS world, it's not going away. What's going to happen? It's going to expand and all of this AI opportunity is going to exist. And there's gonna be some people that are pure AI, and then there's gonna be others who are SaaS. SaaS companies have an incredible incumbency that get to expand on top of what they're doing. And oh, by the way, yes, headcount's still going to grow. And at the end of the day, I think we all agree, if you have the data and you have the customers and they trust you, you will be a winner on the other side of that. That's how we think about the future of software and where it's going. Yeah. That's great. And I know there's, and I think we have a slide on here about just sort of the data to your point on what where we are and where we're going. So let me talk about that. Yeah. Because if we all agree, AI is only as good as the data we're training off of. Let me just show you this slide. Over the last five years, we've gone from 46,000,000 contracted users on our platform to 75,000,000 today. Over the last five years, the number of annual transactions happening on the Workday platform has gone from under 200,000,000,000 to a trillion in the last year. This is why we are in a unique and privileged position to drive AI outcomes for our customers better than anyone. And you all tell me, are the largest, most sophisticated, most successful companies in the world going to go out to a venture backed vibe coded AI company and implement it as their ERP platform, their HCM platform, their planning platform, they're not. Those people are coming to us because we're already there and saying, how can you, Workday, help us leverage the platform and take us and help us on the journey in AI? That's what I think is going to happen. Yeah. No. That's great. I wanna keep going. I know there's an area that you're on a lot of calls with me, Carl, and we get a lot of feedback. We've shared some some anecdotes around AI momentum, and and I know we'll share a little bit of that here today. But one of the questions we get is, well, what does that really mean to the broader Workday business in in terms of driving growth? Yeah. So you've all been asking us for additional disclosures around how AI is growing, and and we've decided to do that. But I'm gonna start with what we've already been talking to you about. Most recently, we've announced that 75% of our existing customers today are already using a Workday Illuminate feature or function. On the earnings call just a few weeks ago, we said 75% of our net new customers include AI as their first purchase, and 30% of our sales back to our customer base are buying AI. And our AI new ACV has been doubling year over year. What we decided to do is go further and show you what this actually looks like. So let's take a look at this. In the last year, our growing AI momentum has gone from over $250,000,000 to greater than $450,000,000 growing 50% year over year. This is across all of our products that now are being powered by AI. And there's a disclaimer down below that you'll see that has been provided to you. Let's take it a step further. Let's look in the last year what's happened very specifically to what I call our agentic AI SKUs. So these are our agents. These are things like our talent mobility agent. This is our recruiting agent, our contract intelligent agent, our contract negotiation agent. So just in the last year, it's gone from less than 50,000,000 to more than 150,000,000 in ARR exiting Q2. And when you pull this together, this is growing right now and driving about a 1.5 percentage points of ARR growth in the overall business. And this is on the $150,000,000 number. I'm not even counting the $4.50 in aggregate where we're selling other products that are AI as well. This is on the agent excuse side. And what we're going to do on an annual basis, continue to update this and provide more clarity and color so you can see the path we're on and how well we're executing on our AI strategy. And then we'll give you more anecdotal evidence and talk about it is growth and other things like we've been doing in the last couple of quarters. Our AI momentum is super, super energized right now and it was all evident today on stage at the innovation keynote. Yeah. That's great. Okay. So I want to close and I'm sure we'll get a lot of questions about that later. But I want to close now on something that I know is super important to you, which is leadership and bringing talent in. We brought a lot of folks in over the last year. I know Rob, who will be here, spending time with us, Garrett on the product and technology side, Peter from my hometown of Omaha, and a number of other folks that have come on. And so maybe just talk about what that what that means and what are you solving for when you're bringing on this talent and and what it means for the future. So first, I hope you all saw if you were there this morning, you saw Anil on stage. It's always, it's always a pleasure to have Anil come and talk about his vision of where enterprise software is going. It's not common twenty years into a business that you haven't found that still around, and we get to leverage his incredible mind. And as my friend and the cofounder and the executive chair of the company, it's just so good to have him part of the team. Yes, we have brought in a lot of new people. You'll see him today. Peter, who runs product and technology, for for Garrett will be here, and and and we'll also bring up some other folks like Rob, who's been here almost a year running go to market. But it doesn't stop there. We've added other people you might not see today, but you'll get to know to run and drive our medium enterprise. We hired a GM of the medium enterprise business. We hired a person to come in and run our platform business that was running the platform business at Google. So we have recruited some incredible talent, over the last many years. And if you look at this slide, it's new talent with existing talent that has been here for a while. And how they've come together and worked is something I'm super proud of. In fact, the working, the interworking between Garrett and Rob in the field and the product team at Workday has never been stronger. They run QBRs every quarter with the leadership across each of their respective functions. They dive deep into the market needs and customer needs. It's an incredible relationship that's been established in a short amount of time, and it's driving growth overall for our company. Now everyone, sometimes we put these slides up and some of you investors say, Carl, how the hell do you manage all these people? These are not all direct reports. There's six or seven that are direct reports of mine. But I think it's critically important that we showcase the incredible talent we have at this company because these are the people that are going to lead us into the future, Justin. And I couldn't be prouder to be associated with all of them and get to serve alongside them. Yeah. Awesome. Great. Well, Carl, thank you for the conversation. I'm going to exit stage left. I know you've got a few comments and then we'll bring Zane up here in a second. Okay, great. Thank you, Justin. Yep. Yep. Thank you. So before I bring my dear friend and a great CFO up to stage, I'd just like to make a couple maybe closing comments on my opening section and some opening comments on the next section. I think you know me. You know how energetic I am, how optimistic I am, and I couldn't be more energetic or optimistic about Workday and our future and what we're doing. We have 20,000 workmates here at Workday who are working hard to propel us for the long term. They're doing incredible work. They're bringing incredible innovation to market. Our customers are deep loyalties to us. Our partners are coming to us. They want to partner. We are in an incredible position to thrive for many years and decades to come. Folks, I want to be clear. There's something special happening here at Workday. There's 30,000 people at this conference this week wanting to hear about what we're doing to help them navigate the future. It's been an amazing twenty years, but I will tell you the next twenty at Workday is going to even be stronger. And before I bring Zane up, one closing thought and one opening comment. We are absolutely continue to be focused on driving durable growth at scale and at the same time expanding operating margins. I remember when I started, they said you can't do that and you're not going to drive margins while we have. And I honestly believe, and I think a lot of my workmates believe, we are under appreciated, and we're undervalued. And we have many different ways we can invest in Workday. And we're going to place that bet on ourself. You're going to see what we're doing from an innovation. You're going to see our financial framework. The best use of our capital to drive growth of the company and get the return on that capital is to invest in ourselves. And I'd like to bring Zane up to talk more about that with me. Zane, please join me. Thanks, Karl. Hi, everybody. Good to see, so many of you here. I know this is a great event, a big rising Yeah. And I think what many, many percent more than what we had last year. Yeah. I think I didn't share a statistic, but I think we have, more than 40% growth in new companies that are rising for the first time. That's pretty impressive. Yeah. No. It's great. I see this room's expanded too. I've actually met a number of people outside, and it's such a beautiful day in San Francisco. Many of you here know we've we've closed Howard Street, so I actually think next time we just do it right out there with the Yeah. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I know. I is just been a few minutes on the KPIs. As Carl mentioned earlier, we've been here almost three years. Exciting times, and I know since day one, we've been talking about some of these key initiatives. And I think just, you know, spend a few minutes, you're gonna hear a lot more later on this afternoon in a number of these categories, so we're not gonna spend a lot of time on it. But first and foremost, AI. Carl mentioned $150,000,000 with emerging AgenTek AI growing at over 200%. And, of course, we've got a great crew back here. We've got Peter. We've got Asana, and, of course, Garrett, who are gonna talk a lot more about agents and the Agentek opportunities that we have ahead. And when you just talk to everyone around here at this conference, you're gonna see a lot more visible. And I think versus last year, Carl, we actually see practitioners using it, and we're very excited about the path ahead. So a lot more to come on AI. On international, Rob's going to talk about the continued growth opportunity in international. If you look back over the last twelve months, we've had 15% growth. So growing consistently with the company, we've talked about it publicly, where we've leaned in in some quarters and said, look, it's exceeded expectation in some quarters, a little bit shy of expectations in others. But again, a big international contingent here, and we've got another rising coming up later this year. So Probably have 5,000 in, Barcelona in a couple of months. Exactly. Exactly. Exactly. Keep it keep it going. And then, of course, Fins and Foolsweets. We talk a lot about Fins and Foolsweets. 20% growth here. Of course, this is our core FINS product, plus our planning product, and then some of the adjacencies, we've got Extend, Extend Pro, and then Eversort that fill out that combination. So nice growth. This is over $2,000,000,000 on a run rate, so we see nice growth there. And Carl, you talked about partners. Can't be more pleased with the partners. This is, like, five times 1,300 plus is five times the number of partners that we had, just a few years ago. I mean, it's so impressive from deployment all the way to go to market, and then this ecosystem that you talked about. It's it's really exciting times. Yeah. For sure. And then, of course, Medium Enterprise, new to this list, but we've been focused on Medium Enterprise for some time now, whether it's the pricing, the packaging, the product, the go to market. Maybe if you want to mention a little bit more, we can actually put even more behind that. I mean, if you look at the opportunity we have in that aggregate of TAM, a significant portion of it is in the medium enterprise. Yeah. And it's been an area of focus for ours. And in fact, we have thousands of customers that are under 3,500 employees. I don't think we talk about it enough, but we launched something Workday Go earlier this year, which really transforms how we think about the medium enterprise, or sometimes we even call it the emerging enterprise, which is 500 employees or greater. And we're leaning into it with new pricing, new packaging, new deployment services and capabilities, acceleration of value for our customers with how we're deploying both direct and indirectly with our partners and then how we sell. And we hired, as I mentioned earlier, Zane, someone to come in, a really seasoned executive, a former CEO, to be the GM of that market segment globally for us. So I'm super excited about the medium enterprise, and we're going to push hard into that market. And the harder we've been pushing, the more success we have. And it also drives, two points up, Zane, a lot of full suite sales. Exactly. And then on M and A, I think you guys have seen what we've done since last year, Zane, with Eversort, HiredScore. We did FlowWise. We announced Paradox for frontline high volume recruiting. And then obviously today, we're super excited about what Sana brings to us. Yes. No, some great opportunities there and great growth ahead with that. So as we look at those KPIs, and obviously we talk about those emerging trends, that's what's helped drive this durable growth, which obviously we're very proud of. Going back to f y twenty three, we're just under $6,000,000,000 and expecting just over $8,800,000,000 this year. Now I'll point out the obvious, which is that this does not include Sana. Sana is smaller, but we have great aspirations and expectations for future years. But none of the guidance you see here includes, our most recent, proposed acquisition. But what I do wanna highlight is the increase here on an annual basis. You can see it's a billion and then a billion 1 and a billion 1 again. So we feel good about the growth here, the diversity of the growth, obviously, leaning in a couple of the areas here, whether it's customer base, product adoption, new customer growth, the ramp of the growth areas that we've talked about, and then monetization of AI. And you're gonna hear Garrett talk a little bit more about flex credits as we think forward and look forward. A great opportunity ahead on the flex credits. Yeah. Super excited about the new pricing model for our, AI solutions, and we'll dive deeper into that here. Right. And then we take a look at the the opportunity that that has presented in in expanding our margins, and we've always talked about durable growth, but growth at the same time expanding margins. And here, if you go back to just f y twenty three on a non GAAP basis, just over 20% in operating margin, and expected to climb three points on a year over year basis to 29% at the end of this year. So a lot of work by the team here. Obviously, we've been investing. At the same time, we've got strong gross retention, which obviously helps. We do look at efficiencies across the business. We talk a lot about the investments, but at the same time we put just as much energy into thinking about people, process, and systems, and some of the efficiencies we can get out of the business at the same time. So it's been a great balance, and obviously we're quite proud of the growth that you see here and a lot more to come just in a few slides as we look at it. No doubt, Zane. I want to give Workday and our workmates a really big pat in the back for helping us drive this efficiency in the business. It's not been easy. But I will tell you, on the other side of all the changes we've made inside the business, we're moving faster than ever. That's why I said initially one of my observations are the bigger we're getting, the faster we're moving because more efficient, we're more streamlined. And we're just operating at a scale and pace, you know, bigger and faster, than I've seen in a long time. So I'm really proud of the team. This is not easy, but the team's pulling it off, and we're not gonna stop here either, Zane. Yeah. No. We'll keep going. You know, I highlighted AI here, as with a lot of companies, we focus on AI not in just our products that we produce, but also what we do across every function. We all have AI plans. We call it Everyday AI, and we're pushing AI literally across the enterprise as well. And in addition, I know we have there's not a conversation we have where we don't talk about SBC and how we're managing stock based compensation. We take it very seriously as you look on the progress we've made here from 21% in FY '23, expecting 17% off a point year over year into the end of this year, and still on track for the 15% that we mentioned this time last year when we talked about how focused we are and how we're managing SBC. Yeah, Zane, and thanks to all of you. This has been a hot topic of discussion the last three years. I don't know if we've ever had a call where this wasn't brought up, and we said we were going to address it. And you can see we're doing that. We're trending to exactly what we said, exiting next year, FY '20 exiting next year, FY '26, trending to 27% at 17%, so we're doing that. At the same time, there's an incredible war for talent out there. And when you see some of the people up here on stage, whether it's retaining people like Ashna or recruiting people like Garrett and Peter, we have to be able to lean in and invest and make sure that they feel like they're an equity owner in the company. So we're going to continue to trend this. We'll talk more about this in a couple of minutes. But I also, Zane, I don't want to over rotate because it is very powerful when you're going out and recruiting the type of talent we're getting into the business, and we need to be able to leverage equity and stock, to get them to join Workday. So we're going to keep pushing this down. But we're also going to continue to use it as a way to attract the best talent in the industry. Agreed. So now as we look forward, this has been sort of the progress to date. We wanted to lay out a framework here that you can understand, and as we set up our financial framework. So if you look at our key assumptions here, we've we've laid out three cases as we look ahead. There's a low, a mid, and a high case. And of course there are a number of factors that could go into each of them, but we've highlighted two key levers here that we talk about a lot with all of you. One is the macro, and the second is the ramp of the growth areas. And as I mentioned there are a lot more that go into this, but if you think about laying out these cases, you know, in the case of macro we'd say similar to today. So to ground you on the mid case, the macro is what we're experiencing where it's a stable macro similar to what we're experiencing today. And then as we think about the correlation with that and the growth there, I'd say it's continued progress that we'd make that we are making and will make in our growth areas as we expect given the current environment. So that's how we're setting up the growth profile. At the same time we're looking at margin, and I could say the same under each of these cases. With the mid case for instance, the current pace is balancing both growth on the top line and growth and operating margin. At the same time, we're always investing in AI. So I don't want you to ever think regardless of the case or the the way that we think about sort of the low, mid, and high, we'll continue to invest in AI and continue to grow this business, but just thinking about it in these different cases. And in addition, I would also highlight that when it comes to M and A, we'll always remain inquisitive, but as you know, we have a high bar with M and A. We believe that under each of these scenarios, M and A would play an important role, as well as obviously our organic innovation and growth. Yes. I guess two things here, Zane. So first, I want to make sure we don't stop investing in AI, right? Even if you go to the low end of this, Zane, and let's say the macro slows and we have to moderate because our growth areas aren't growing as fast as we can or we want, we're going to continue to lean in to investing in AI because of what I just laid out earlier, our unique position. Because even in down markets, the people who recover fastest on the other side when things turn are the ones who never stopped investing in innovation, right, and in technology. And that's exactly what we're going to do here. The second thing I really like about this framework, for the last three years, you've asked me directly and Zane directly when I'm not in the room, listen, Karl's a growth guy. He wants to keep pushing. He wants to keep growing the business. And is that going to come at the expense of operating margins and driving efficiencies in the business? And the answer was always no. And I think we've proved that. We continue to lean in. We continue to invest. But if things slow, we'll accelerate our margins faster, but we'll continue to invest in the business. And I think this lays out a great framework of how we think about the business over the next few years. And I'd also say, Zane, it's not all siloed here. Exactly. You could see a stable macro environment, but we see an acceleration of our growth areas and then we accelerate our investments. But it's a good framework on how we're thinking about you know, the next two or three years. Agreed. And with that, I know you guys are all waiting for the numbers. Here they are. Our targeted financial framework for FY 2028. So as you can see here, we've kept to the low, mid, and high scenario that we just laid out for all of you. And on the top line, we have subscription revenue CAGR through FY '28. So that ranges from 12% to 15% in each of these scenarios. And then we have a non GAAP operating margin for FY '28, and that ranges from 33% to 36%. And then as we've committed to you, we will adjust accordingly and our target here is a non GAAP rule of 48%. So five points higher than what you see our expectations are for this year. So we've always talked about that balance and this would include growth within f y twenty eight on the top line for subscription revenue with a non GAAP operating margin that would total 48%. And for many of you, you also ask about SBC Yeah. And we continue to talk about our commitment to managing that lower. So over that same period, we expect to have SBC as a percent of revenue, somewhere between 1314% depending on timing, and then committing a target rule of 35%, which would be the non GAAP rule of less the SBC. And that would be nine points higher than what you see today. So a meaningful step in each of these categories, under each of these scenarios to drive value in the business, both on the top line and on the bottom line. Yeah. And and I think this is a really good framework. We've really thought a lot about this. I do want to anchor you on the mid numbers there, 13 to 14, because I know immediately you start to think about FY '27. And I want to anchor you to the 13% number. We want to put a number out there that we feel very confident in that we can hit. I think you have continuously challenged us and questioned whether or not we're going to meet the numbers we put out there. We can hit 13%. And if the tailwinds start to really pick up and our growth areas start to accelerate, we'll try to grow and expand from 13% all the way up to the high end, and we'll update you when that happens. But I want to anchor you where we're focused and what we're delivering for both this year and into next year, Zane. I think it's really important that people understand that. Agreed. And we'll, of course, update you later this year in our fourth quarter call as to more details looking into FY 2027. This is the framework through FY 2028. Then I couldn't be more pleased, of course, with the board, having approved an incremental $4,000,000,000 in buyback. As you see on the slide here, we mean it when we say we're investing in the business and want to continue to drive this business, but also recognize capital allocation is important, and many of you have talked about buybacks. And we think this is a good time to put our money where our mouth is as it relates to that, And we're going to be buying back $5,000,000,000 through FY 2027. Yeah. With a lot of that being accelerated in the earlier part of that journey too. We're leaning in. This is why I said, we think the best investment we can make in the future of Workday is in ourselves. And this is an additional $4,000,000,000 on top of the $1,000,000,000 we already have out there, so it's $5,000,000,000 to FY 2027. And this isn't to drive down dilution. It's because I think it's a great investment for our company and our business. Totally agree. And with the strength of the balance sheet and the progress we're making in the business, we of course see free cash flow per share CAGR of over 20% over the next number of years as well, targeting free cash flow per share of $15 in FY '28. So great growth on the free cash. We know so many of you, both in the room and outside the room, think this is one of the most important variables out there, and that's, that's obviously what we're focusing on. Yeah. So this is gonna be we're excited about it. And before we have others join, you know, I just want to obviously go over our our capital allocation philosophy here. First and foremost, as Carl has stressed, our primary focus is organic investment, in particular in AI, growing our platform, and you're gonna meet some of the key talent that we have investing in the key talent around the globe for the company. So we're gonna be driving value through that. Along with that, whether we're partnering or otherwise thinking about M and A, we'll consistently have the cultural alignment, the team and technology, adjacent markets, and just great opportunities as we think more broadly around M and A. But nothing has changed if you look at this list, whether it's Flowise, Paradox, Evisort HighScore, they all fit this paradigm that we invest in and are very excited about. Sonnet soon soon to join that list. You should've added Sonnet. It's been this week. It has. Yes. It has. And then, of course, returning capital to shareholders through share repurchases, and we've made a big step forward in that regard. We'll actually have less share count through FY 2027 and couldn't be more pleased with a $5,000,000,000 buyback that we'll be executing against over the next number of years. Yeah. Thanks for saying that capital allocation strategy and philosophy out. We're to innovate three ways: organically, inorganically and the go to market. We're going to continue to be inquisitive through acquisition. And we're going to bet on ourselves as much as we're betting on anything else in the market going forward. Agreed. We're an innovative company at scale. And speaking of innovation, it gives me great pleasure for Zane and I to welcome to stage our President of Product and Technology, Garrett Hasmeyer. Garrett, welcome. Thank you, Zane. Thanks, Carl. Hello, everyone. It's great to be here. This is my first rising. I have just joined in March, so it's been six months by now. And it's my first financial analyst day, so, you know, please go gentle on me. I'm a first timer here. Okay? That a deal? Good. I take it. Yeah. Good. There was no other allowed answer, by the way. So I want to quickly introduce myself here for a second. Right? Because I'm new and and, you know, some of you may not know me. I've joined in March, as I have said. Before that, well, way before that, I was working at SAP. Started my career at SAP, actually, and left SAP as the president of all database analytics, business intelligence and planning portfolio for SAP. Joined Google Cloud and I was the Vice President and General Manager of Google's Data Cloud, so all of the data services and analytics services. So I've seen both the world of global business processes and the world of planet scale data and higher technology. And there is one opportunity that uniquely attracted me to Workday, but I'm going to go into that in a second and just talk about some of the other factors which were main decision pieces for me, you know, to join Workday. And one, you you just saw it. Right? Working with Carl, working with Anil, working with Rob, you know, a world class leadership team, you know, is a unique opportunity in itself. Rob and I actually worked together in our past. Rob was at Google beforehand, and we also crosshaves at SAP. So I have immense trust in the leadership team here at Workday. And you're going to see also a few of the leaders in product and technology later today, like Asana, who leads CH, our own incredible leader at Workday, for, I think, twelve years, and Peter, who joined me from Google as our new CTO. So we have an amazing leadership team at Google here at, at Workday. And very importantly, right, you know, what, what I think also Carlos said, right, the Workday values. For me, they mean a lot. Right? I'm not sure how you look at these things. I'm a very competitive person. I wanna go out there. I wanna kick ass and win, but I wanna do it the right way. And that is, I think, unique work day. As I said, there is a unique moment right now in the market happening. I know business processes and I know AI. And no matter how you criticize one study, right, you know, you also the MIT report, you know, the Stanford AI index, you know, the McKinsey report that is being here shown on the slide. There was a JPMorgan study also not too long ago. They all come repeatedly back with the same finding. Right? So we we can't ignore the pattern. And the pattern is that enterprises, while they spend a lot of money on AI, they're getting very marginal returns. Surprisingly marginal returns, you know, for the amount of effort and investment. And with all my experience, I know there are actually very good reasons for that. The primary reason being is that the recipe for AI, you know, for the public domain, for consumer technology, if you will, the recipe is very different than the recipe for enterprise, Fundamentally different. It starts with one, you know, big difference from how you actually build AI from the get go. Enterprise data is proprietary. You know? You cannot just upstream it into a model. You know? That's what, you know, you're calling the process, you know, to make the models model. You upstream data into it. And that just doesn't work with proprietary enterprise data. Also, you know, models, when they complete tasks, they need to provide it with a lot of context information. They're not going off on their own and do work. When you use JetGPT or Google Gemini and give it a prompt, basically, you give it context and it starts operating. But if you want it you know, to accomplish a complex sequence of tasks, you have to basically constantly, you know, refresh and keep that context exactly what it needs to be. That is a major a major system engineering effort. This is not trivial. Right? We're talking sophisticated sorts, sophisticated ranking, and so forth. And last but not least, on the data plane alone, most enterprise data, it is not even AI ready. You know, it's inconsistent. You know, it's fragmented. It has all of the issues which make it practically impossible to even use it into a real AI process. This is why this DIY AI, basically some vendors, they just give customers a box of Legos and call it the agent bill or whatever. And basically, you know, it means, well, you know, you give you the infrastructure, but you actually have to figure out AI alone. It doesn't work. Not an enterprise. The second piece, business processes are complex. They run organizations. They have systems, you know, whether it's hire to retire on the HR side, whether it's, you know, quote to cash. You pick yours. Right? You know? Source, to pay. All of these processes are long running and an orchestration of a complex network of actions and systems. And you cannot just, you know, superficially, you know, slap AI across of that, right, on legacy APIs and have to hope that this would reconfigure or transform the process itself. The key is that AI actually needs to be brought into that stateful workflow model itself to operate it. Can't sit on top. Can't sit like a Copilot on the side. You have to actually reengineer it with AI first in mind. And that's, you know, the unique opportunity that I see in Workday. Workday has the benefit of being born in the cloud, which means it has a consistent, uniform data foundation across all our tenants. It was multitenant from day one. All of the things that you have heard earlier about the trillion business transactions, that 75,000,000 users on Workday, they're all contributing to this pristine, clean business data set that Workday basically has and truly understands best how people and money are moving through organizations. That is unique. Secondly, what you heard about, and we are expanding our core. Right? Workday strategically extended that data set again and again and again. And when you think about what we talked about today about frontline, right? That's basically more signal, more information, a wider funnel feeding our data backbone at Berkeley to build differentiated AI with. And secondly, it's the ability to build now these AI models, these AI systems directly into the business process model itself. This is what truly differentiated AI actually is being built on when you rethink the process of how it's being done. And this is where you see the great examples that we shared earlier today, where you actually change how frontline is managed, changed how financial close is being done, when you actually take a massive amount of inefficiency or labor costs, if you will, and compress it down into software cost very efficiently. That's ultimately the AI opportunity. So our three pillars. I'm going to quickly touch on those and, hand it over to Asana to take you through the first two. Building the best AI agents really means that we have a world class AI engineering team building AI systems. This is not basically automating the legacy. It's truly rebuilding. And Peter, our CTO, he and his team are working on the frontier of that business AI system building. It means that when you see the agents that we're gonna talk about later here today, they are not just single task trivial agents. Right? It's pretty easy to automate a quick demo, give a model a quick prompt, and do something superficial. It's actually pretty hard if you want a model to behave like a recruiter, like a manager, like an AP clerk, like a financial analyst, and you actually build a system that can accomplish all of these tasks and actually work collaboratively with other agents on accomplishing a bit of a business goal. Secondly, expanding our core expanding our business. You know, it's good business for us because Workday is a household name in North America, but internationally, not so much yet. I'm from Europe, right, and there is such a big opportunity for Workday to take our existing application footprint and bringing it there. But secondly, there are also so many untapped areas that we are just going into, like frontline work. And lastly, something that Workday did not yet really pursue, a platform business. Today, we announced Flex Credits, a consumption based pricing model, which truly allows us to deliver value to our customer in a usage based way, but also to capture value on a usage basis. A very powerful model. And we have added a number of services into it, which allows us, and our customers now, to build AI better, build apps faster, and take their Workday data and integrate it with the data ecosystem around them, all on a usage based model. So very quickly, these agents, right, you may wonder, right, oh, great. This is a slide and it doesn't have 10,000 agents on it. Right? And there are other vendors who are saying, we have a 100,000 agents. That is exactly, you know, why AI goes wrong on the enterprise level. Right? It's very easy to publish a slew of trivial, low accuracy, unreliable agents at scale. It's very hard to make AI proficient at real business tasks, and we are taking on the most complex processes in HR, in finance, and in planning. And all of the agents that you are seeing here, we put them to the test with our customers. So they all deliver real results, reducing, you know, the time that managers spend on managing shift work, speeding up financial close, getting payroll, you know, faster compliant and done with fewer errors. All of them are proven on a hard ROI measure, and they all achieve a very high degree of autonomy. When I talked about expanding the core of our platform, we built a new unit around Workday Go, our mid market segment, that builds the right packaging, the right pricing, the right service model to really take the great brand that Workday has and bring it to all mid market customers. A tremendous opportunity. It requires that we build a business like a true business, soup to nuts, and that's exactly what we're doing with Workday Go. And as Carlos said, we had a terrific leader who is leading this unit now, And I can tell you, only a few weeks in, the potential is gigantic for us. Same with international expansion. We're going to announce more points of presence, more regions. We're going to make Workday more available around the globe and build up a global sales presence around it. We are going into federal in The U. S. And in other public sector entities around the globe. And last but not least, taking Workday to the billions, billions of frontline work out there. And today, maybe the most innovations that we have launched organically all around Workday build. Workday Data Cloud, together with Snowflake, Databricks and Salesforce, a new way for our customers to activate their enterprise data by building the most open, the most connected data ecosystem in the industry. We launched a number of new tools, application and integration building. And most importantly, we built integration with FlowWise, a small acquisition. But the key for FlowWise is that you have the most beautiful, the most powerful AI agent designer just outside of the enterprise. And we brought this model and we deeply integrated it into the Workday platform, so that every Workday customer can now build AI driven workflows, backed by Workday's data, backed by our process model, backed by our security, and automate tasks like never before. You can forget in all of the legacy workflow building in the world, this is a much better way, much easier, and we are 100% convinced that this is changing the way how customers think about Workday automation, not just for Workday, but across the entire enterprise landscape. And lastly, before I head over to Asana, you heard the announcement around Sana. I know some of you may have questions about it, and I'm excited to take some of them later. It's going to be a game changer. It's the new front day to work, and that's a statement of true conviction. AI predominantly is gonna revolutionize how people interface with software. That's where a lot of it value truly lies. And we had the opportunity with Sana to bring a company to us who has completely rethought how people interface with information and with AI based actions by bringing them together one experience. And we're going to bring this across the entire Workday platform for every customer, every worker out there. And that's gonna work for Workday and even beyond. A massive potential for us. And with that, I would like to hand it over to Arsenal Kirschner, our CHO, our Group General Manager, and Senior Vice President. Arsenal, over to you. Thank you, Garrett. Appreciate it. Great to be with all of you again. So, Garrett spoke to our vision and our strategic opportunity ahead, And I'd love to bring this to life, with some examples, starting with AI. And AI starts with getting the data right. Garrett talked about the challenges with enterprise data accuracy and context and Workday's unique advantage in our architecture, governance, integrated workflows, and most importantly, customer trust. We don't take those for granted. We're continuing to help customers achieve the highest levels of data integrity and strategically widening Workday's data moat. In HR, this means reinforcing our data foundation. Take, for example, jobs, skills, organizations, or many other data points that are part of our HR backbone for customers' organizations today. We're investing to make these data foundations even stronger. For example, investing in Workday's intelligent job hub, which streamlines job structures to keep customer architecture agile and market ready to make sure that the data doesn't get stale. Or Workday Skills Cloud, one of our beachhead datasets with over 3,000 customers today, which helps orgs, which helps organizations understand their people and, helps organizations drive workforce planning, internal mobility, and faster hiring. Or organizations as a dataset. We're investing in organizational modeling and mass changes. Think about a customer who's going through an acquisition. We are helping them create simple experiences and high performance processing for structural changes, a key part of how businesses evolve in the HR world, considering impacts on organizational health and on cost. But it's not just about HR. It's also about finance, and we're investing in the same data foundation in our financial products. Accounting Center is the foundational step to verify that core accounting data is correct and auditable. It automates billions of detailed entries confirming that financial, financial information has a high degree of confidence and integrity. Over 400 customers have achieved massive efficiencies using accounting center, up to a 70% reduction in manual journal entries. And accounting center has been critical to some of our large customers like Fannie Mae, Salesforce, and U. S. Bank in their decision to move to Workday Financials. In finance, we're also investing in enabling operational data to flow through Workday with strategic industry partners. For example, Trintech for financial close and financial services industries, Zuora for order to cash in tech and media, and Kinaxis for a unified supply chain view, which we just added last week. These partners bring operational data like a customer's order history and contract lifecycle directly into Workday, which creates an even richer and stickier dataset for us. This unified data foundation with complete business process context, that's our AI differentiator. That's what allows us to build the deep domain agents that you just heard Garrett talk about and I'll touch on in a moment. These are purpose built agents that orchestrate complex business processes and drive real outcomes for our customers. And you can see the incredible progress and momentum that we've seen. We've accelerated our organic execution in the past year. We've also made investments in AI leadership across our teams. And this morning, we announced our next wave of roadmap for these agents. Our roadmap is tied to Workday's goals, so deepening our suite and expanding into growth segments. And we'll talk more in just a second about our monetization plan via Flex credits. So bear with me. I'm going to go rapid fire and highlight a few of the agents, but not quite all of them. So we started with recruiting and talent mobility agents. These were built on our HiredScore acquisition. And we're seeing real results. A large automaker cut candidate screening time by 70%. AdventHealth decreased hiring manager decision time by 40%. And we've been able to monetize that value, with the HiredScore business more than tripling since the acquisition. I can't stress enough our strength in talent acquisition, a giant market in its own right with a ton of opportunity ahead, and we just added Paradox into that equation. Last year's Evasort acquisition gave us the power to connect structured and unstructured data at unprecedented scale. This is what powers our contract intelligence agent, which reduces contract execution time by 65% and accelerates both sales cycles and supplier onboarding. We're only a few quarters into selling this product and customers can't get enough. And think about how many documents tie into Workday, from sales to lease to procurement. And on the HR side, statements of work, policy documents, employee agreements, the opportunities are endless. So we recently delivered a new set of capabilities to our customers and hopefully some of you got to see our end to end agent demo in the keynote this morning. We strategically identified other areas for driving significant efficiency gains for our customers. For example, our payroll agent, which proactively flags issues before payday, reduces errors and expedites compliance up to four times faster. Or our financial audit agent, which automates the very painful process of gathering audit evidence. It's designed to process auditor requests, retrieve relevant documentation, and package it up automatically. Our early adopter customers using our financial audit agent have seen the potential to save up to nine hundred hours on audits per year. For contingent labor, which sits right in between HR and procurement, our contingent sourcing agent rediscovers talent within a company's existing workforce. This is another example of getting tremendous value out of our acquisitions. It's powered by Vensli for contingent workforce management and HiredScore. And our agent accelerates sourcing by proactively finding top contingent talent. By connecting our market leading recruiting platform for traditional labor with the best platform for contingent labor. We're able to provide our customers with that end to end solution to drive talent acquisition. And finally, our last example currently with early adopters, our Planning Agent, which flags variances and proposes adjustments, dramatically reducing cycle times by as much as 30%. Our early our early adopter customers cut that data exploration time by 30%, saving roughly one hundred hours a month, all while simplifying administration and lowering the cost of ownership. But we also announced our next wave of agents this morning, including our employee sentiment agent built on PECON, which has the world's largest dataset of its kind with over a billion responses around employee sentiment. And it proactively addresses workforce issues to reduce costly employee turnover. Or our new Performance Agent, which draws on data across Workday and other systems like Salesforce, giving managers comprehensive data driven assistance, building that performance culture that powers businesses. Or our case agent, which automates HR service delivery to reduce operational efficiency and reduce HR costs to increase operational efficiency, excuse me, which reviews similar HR cases and applies the right regional and business compliance context. That's something that only Workday can do. And it drafts a tailored response, resolving cases faster and lowering the number of support requests. And finally, our new financial close agent, which helps streamline the entire close process. It coordinates close tasks across teams, flags issues in real time, and helps transform the process into a simplified and efficient workflow. You can see this isn't back office plumbing. It's CEO level business transformation. We help organizations plan higher, pay, and close end to end on one platform with AI at the core. This deep domain AI builds on the strength of the Workday suite to transform HR, finance, and the critical markets in between like planning, Venly, payroll, and more. And they're strategic markets that unify operational data increasing the value of our platform and widening our data moat, making our foundation stronger and growing value for customers and Workday. Hopefully, you can see we're not interested in a couple percentage points efficiency. We're looking for dramatic gains. And this is what allows us to strategically expand our core business to win in key markets, like medium enterprise, international markets, and even specific industries like federal and frontline, where you already heard some teasers today. Rob's going to talk a little bit more about our go to market enablement in these areas, but let's go deep on some examples around product investment. Starting with our medium enterprise investment. Now, our platform has historically been perceived as too complex for midsize companies. We are actively simplifying our product and delivery to increase ease of use and reduce total cost of ownership, transforming how midsize companies deploy, adopt and optimize our platform. We are reducing operational costs with AI. We know deployment costs are a major driver of TCO. So we've invested in a deployment assistant to drastically accelerate deployment time deployment and time to value for go live and new feature adoption. We've also invested in our BP Optimize agent, which helps customers get more value out of Workday. So this takes a look at the processes that are in a particular tenant and helps recommend suggestions and make changes on behalf of customers for them to get the most value. It surfaces bottlenecks that shows pure benchmarks and it recommends real time configuration change. One of our EA customers experienced a 90% improvement in business process efficiency with our BP optimized agent. In finance and payroll for Medium Enterprise customers, we're actively invested in reducing integration complexity. We'll come back to payroll in just a moment. But in finance, we announced our new revenue center for medium enterprise. We know ME customers don't want the added costs of a third core system to manage revenue. They want it tied directly to their ERP. Our revenue contract agent automatically extracts key financial data from contracts with AI. Let's turn to international markets. We're expanding Workday's addressable market in key countries. And this starts with regional cloud platform coverage for increased performance for users in proximity to their region and data regulatory compliance. We support multiple global regions and are adding Japan, India, and The Middle East over the next fifteen months. We're also strengthening our sovereign cloud offering for EMEA. Our second pillar of internationalization is localization and compliance. In finance, we support over 175 countries with pre configured tax and reporting templates for over 55 of those countries. And our new global tax hub, which comes early next year, will provide a central place to manage multi entity compliance. It will integrate with our comprehensive partner ecosystem, including the likes of Vertex, Avalara, Thompson Reuters, and Kyriba for global tax, e invoicing, and bank connectivity. In HR, said we'd come back to payroll. For international payroll, we offer native payroll for Commonwealth countries. Australia and Ireland are now live, and we actually just announced the intent to build New Zealand today. Our Global Payroll Connect Hub links Workday with third party providers across 187 countries with 27 partners. And our Global Payroll Connect solution cuts deployment time from two hundred hours to at least half of that. These investments are about accelerating market penetration, driving global revenue, and continuing, I'm going to say it again, to build our data moat. We're also investing in marketplace solutions that accelerate time to market in international for us. These take advantage of the build platform and they are rocket ship accelerators for these markets. For example, companies in Japan have a unique way of assessing employee performance. An app for multi rater performance management offers this in a scalable, low cost way. PwC has built apps to help customers comply with global regulations, like Right to Work app in The UK and sickness and recovery management for The Netherlands. And we actually just signed an opportunity with KANOS to support an EU pay transparency app for EMEA. Peter is going to talk a little bit more about the build platform as well. So let's switch to industries. A key focus and our investment here is helping us drive higher win rates and increased TAM, starting with federal. We recently announced Workday Government Cloud, our dedicated infrastructure to meet the highest security standards unlocking this massive and very, very complex market. We are focused also on meeting the unique needs of the federal sector. We're actively engaged with the Office of Personnel Management or OPM to align our offerings with their standards for HR. This direct collaboration is crucial and it validates our ability to serve a market with a very high barrier to entry. This work positions us to cap to capture a substantial share of a historically very underserved market. Beyond federal, we're also continuing to make Workday a platform to serve our customers' total workforce, serving every type of worker for every kind of work. HCM gave us employees. Vendly gave us contingent workers. And now we're moving beyond our 75 plus million users to the billions of users in the global economy, specifically frontline workers. We already have a significant footprint in industries like retail, hospitality, manufacturing, but the opportunity to continue to expand is massive. This market wants AI driven, mobile first solutions and our platform is uniquely positioned to deliver them. Our frontline agent, now with early adopters, cuts the shift replacement process from fifteen minutes to two, saving managers an estimated 90% of their time on timesheet approvals. And guess what? We just announced our intent to acquire a company about three weeks ago with a large customer foothold in this market. Our intent to acquire Paradox is a big step forward actually on a lot of the fronts that we've talked about today. Deep domain AI, broad customer fit, and a wedge for us into the frontline market. Workday and Paradox will provide an end to end talent acquisition suite, giving customers the AI advantage to find, hire, and onboard every worker. Paradox's leading conversational AI streamlines the candidate experience. We've been partners since 2021 and share over 200 joint customers already. This brings a dedicated candidate experience agent built on nearly a decade of candidate data into Workday. And the results speak for themselves. With a 70 plus percent application conversion rate. And Paradox's experience has powered more than 189,000,000 AI assisted candidate conversations. Paradox brings a proven at scale deep domain agent and dataset to Workday, especially for candidate experience in the front line, which adds to our growing list of native Workday built agents in areas where we have the data and context to be highly differentiated. But our agents and core are only as strong as the enterprise AI platform powering them and allowing us to expand our ecosystem. To talk more about our AI platform, please join me in welcoming Peter Bayless, our Chief Technology Officer. Thank you. Alright. Thank you. Thank you. Alright. Thank you, Asha. This is month four for me. As Garrett mentioned, I joined from Google. And one of the reasons why I joined Workday is actually the incredible asset we have, which we talk about a lot, but just to put it in perspective, we really are the best application in the world for people and money. But meaningfully, we've got a trillion transactions a year running through our platform, which is incredibly high volume. That's not just good for our business, but when you think about AI, AI has a lot of teaching these models that are trained on trillions of tokens on the public internet and all the books available. How to do work, how to actually make AI work for people in these workflows. So when you think about the platform that we have, taking that data and taking that context and putting it to work is an unbelievable opportunity. And you see that in the roadmap that we've got, the agents that Ashta mentioned and also our plans for the platform. So data is the fuel for AI. The work we're doing to open up this platform and open up our context is letting both our dev teams and our partners and our customers' dev teams build like never before. This is such a big shift in how we think about Workday, from kind of the siloed monolithic application. So what we thought of as the ERP category, I got my box and my ERP software, it runs, everything's sitting inside of it. It's got proprietary language, proprietary extensions, you know, you can build a great business in that model as we have for the last twenty years. With AI and our new leadership team thinking about the technical strategy of the company, it's time to open this up and open up in a way that's not a free for all, but a way that benefits from the governance, the trust, and the security model we've spent the last twenty years building. So it's a pretty amazing time to build, and I want to talk about what we're doing on the platform side, as well as what we just announced this morning with Asana to really, really take that people and money assets, the data and the context, put it to work. So first one, we're doing a lot with our data. You may have seen some of these partnership announced, but a great example of this we've done at the kind of corporate level is Workday Wellness. So Workday Wellness takes our data. You know, there's thousands of customers who run their benefits through Workday. We partner with some of the leading benefits providers, MetLife, Sunlife, Unum, Chime, and we basically it's Cigna. Huge names. And what they can do is because we've got the benefits data and the worker data sitting in Workday, we can make it easier for our customers to onboard as employers and easier for employees to onboard as well through a data exchange with these providers. Another great example at the corporate level, we've announced this daily pay partnership. So incredibly important problem, over half of Americans are living paycheck to paycheck. And the turnover that results from this is estimated to be a trillion dollars annually for worker turnover. So what daily pay does for its customers is lets you essentially, have more financial stability based on your pay. And by opening up that Workday data for that payroll, 75,000,000 employees, you can get a live view from DailyPay into an employee's financial status. And this makes this type of financial benefit far more broadly available and applicable. And instead of having to build custom one off integrations, right, we're able to tap into this amazing source of data and go power what Cara will call the workday economy. In this case, having a tangible impact on these workers, especially those that are on that paycheck to paycheck basis. Now I'm kind of a geek, so I'm gonna talk a little about developers, right? We talked about Workday build this morning. Build is a huge shift in terms of how we approach our ecosystem. We've always had since even I think the Cape Clear acquisition back in 02/2008, you know, an integration strategy. I gotta put my people data and sync it over to this system and sync it over there. It's very bulk transfer, kind of 2000 era protocols. Build, we basically are blowing up the developer platform and making it far more accessible so that no matter what you wanna build and how you wanna build, the tooling of choice, you can use cutting edge standards to go and build on Workday. And most importantly you can do this without leaving the security perimeter or the confines of your most sensitive assets in the enterprise. And some of the most amazing tech here is enabling us to do this in a zero copy way so that you can go and run analytics on top of that data which is incredibly sensitive. Payroll, employment records, performance reviews without having to worry about, you know, who's touching this and are the right people getting access to the right data. That's a huge, huge change. Open standards but with security. So what this looks like, you know, you've heard a lot about Flowwise, but we're very proud of Flowwise. Incredible open source tool, 40,000 GitHub stars. You know, we had a CIO in the CIO keynote talking about how she was building agents using Flowwise. She encouraged the community to try it out. It's literally that easy to drag and drop and create agents. And we've integrated the Flowwise agent builder into Workday. So you wanna go build processes and workflows on top of Workday business processes, you can go and do that and run with your permission system or permission model and that trust you come to expect from Workday. Extend, we talked about Extend. You know, we build applications. We got a lot of people who build applications. Partners can build applications, custom build applications. The Extend applications live alongside the Workday applications running in our platform. And this is, you know, an incredible skew for us. Tons of customer adoption. We announced 3,000 extend apps in production. Workday is an application to many of our users. Extend is the way to go build new apps. Orchestrations, those trillion transactions, they run through something called a business process. It's a customizable definition of what work means. How do you go pay someone? How do you promote someone? How do you change a job? Every organization's different. Business processes reflect that. So with Orchestrate, you have an ability to go run those programmatically, to go and chain business processes, to go call external systems. And then finally, we'll talk a little more about this, the data cloud. I mean, this is like probably the biggest announcement of build. Making it easier to get access to that data in a way that is secure, zero copy, and incredibly powerful. Now developers are excited about this because we've built a really phenomenal developer experience here, including a Copilot. You never hear about coding tools and coding assistants. Those are fantastic. What we've done is given our Workday developers a developer co pilot via Git's Workday that understands what is a business process. You know, how do we do a SOAP integration versus a GraphQL integration versus a number of acronyms I will spare you from. Right? It gets you started fast and gets you into production faster. The most important point for build, the most important message I want you to take away for build though, is this next one. Build is built on open standards. We are embracing the best standards across the board for maximum connectivity. Historically, you want to build an application on Workday, you're gonna have to learn how to do things the Workday way. We have some really cool technology for doing generative UI and building in place with things like XO and OMS, acronyms you may have heard about if you followed us for a while. With Build, we're going straight to open standards. We're expanding our coverage and our aspiration of all of Workday, every business process has a API with a REST endpoint for GraphQL. For agents, we're embracing MCP. This is the way you expose tools to agents for use. And on the data side, we're embracing JDBC. So you can run SQL queries against Workday. Never done that before. You can do Iceberg. So you can go run bulk analytics at scale without copying your data. This is this is an incredible, like one as one question, this is a total one eighty from the original Workday tech direction, which is much more on keeping us all secure, but also putting up more barriers. And we're able to do this within again that Workday platform, thanks to the new technologies, such that all that people data, all that money data, all that context remains secure within Workday. And with the flex credit system, we can monetize this. You wanna run our app, we can monetize that. You wanna run your app, you can monetize that. The platform becomes the product. Maybe for the first time in Workday history. Now this is more than just tooling. The tooling is pretty cool, pretty kick ass. I think the team's made a ton of progress on the fundamentals, exposing Workday in this more standard way. We also have an incredible community. On the partner side, we have over 500 partners engaged, and this isn't just hitting your traditional large enterprise HCM use cases, it's going to medium enterprise international. You know, as one example, Moxie Group built a, a pay a bank account connector application to one click install from the Workday marketplace into your Workday instance. It takes the process will commute literally weeks to go and get your bank accounts connected to the back end financial systems. It's just one click install takes takes an hour. This is huge for ME as well because it means that a lot of the medium enterprises because a lot of the overhead of configuring Workday, it's such a powerful system, such a powerful toolkit. You know, we can let partners lower that barrier entry, especially for those regionalized use cases and any use cases where you just need that turnkey solution. It's not just on Workday to build all of this. We've got an ecosystem that's making it easier and faster to get started. That is amazing. On the community side, the team's done an awesome job on the developer community. There's certifications, there's upscaling. I mean the headline here and the real proof of a community is, how is it growing? In the last year, we more than doubled the developers engaged in our developer community, which shows more and more people are building on Workday. And frankly, more and more developers are betting their careers on Workday as well. I'll talk briefly about Workday Data Cloud. We had talked about AI. I literally I came here because I believe we have the best data and context to feed AI. You see it in our agents, but this Data Cloud announcement is unbelievable. So data cloud is really three things. Go to the next slide. First, it's a data lake. So we're adopting Apache Iceberg. You get zero copy scaled analytics on top of your Workday data. You can process it in Spark, you can process it in Hadoop if you still run that thing. You can process it in your SQL warehouse. Your data doesn't leave Workday, and you can run analytics queries. The alternative here, I won't, I'll spare you the details, but but it is a painful process and you're making copies all the time. Here it's seamless zero copy done. Second, I wanna query my workday data. I wanna use, you know, fancy language SQL, the lingua franca of data. I can go hit Workday's live data through our JDBC endpoint. So I wanna get a live snapshot for my application, for my reporting, so on. I can do that now. Never possible before. Always had to do it through bespoke APIs or do a SOAP integration. I mean, it is so simple now to go query that data. And finally, we have Prism to go manage all of this because as we know, you know, data needs management. We have access controls, governance, reporting. Prism plays an important role in bringing that structure around this ecosystem. And look, the ecosystem's real. You heard it from Sridhar, who came on stage, Snowflake CEO. We've really partnered with the best in the data industry, Snowflake, Databricks, Salesforce, to make this real. And they are incredibly excited because their customers and our joint customers, they're so hungry for this. This eliminates so much ETL tool and processing. And, it was lovely to have Sridhar here, talk about his vision for this. Final piece I wanna talk about, this one I'm, over the moon about is our announcement made this morning about our intent to acquire Sana. Okay. So Sana, you can think of this as a AI native platform. They started in learning. They have a kick ass learning platform. It's basically the most beautiful learning platform you can imagine. The leading companies in this AI labs that use Sana to create internal content. You go onboard through Sana, you sales enablement through Sana. It's kind of unparalleled in its quality of a user experience. And we're gonna sell a lot of it. But the the really, really cherry on top is what Sana does for workers. So you can think of Sana as enterprise search over all of your data, workflows on top of those different systems, and then agents to go and automate more of those tasks. So we hear from Sana customers that have adopted their agent products. They literally have their new browser tab pointing to Sana. And you can think of this as say, a chat GPT, but connected to all of your enterprise data. So I can go and ask what was the status of that latest Salesforce or that latest sales opportunity? Pulls from Salesforce, pulls from Google Drive, pulls from my calendar, pulls from email to go and answer my questions. And this is such a game changer for Workday because Workday, look, let's face it, it's an ERP system. It's a system for people to go manage their people and money. With Asana, it becomes a place where more and more work happens. Sana customers are in the platform seven times per day on average, and that transitions Workday to the place where work is done. That's an incredible opportunity with AI. And we're so excited to offer this to our customers. One, for learning as a separate sort of add on within the work day learning platform. But as Garrett mentioned with FlexCredits this morning, with FlexCredits, one, they're included allotment in your base SKU. Two, with Sana agents, there's something we can offer to every single one of our 75,000,000 users. No extra SKU, no add on charge, pay for what you use, and we think people are gonna use a lot of this. It's an incredible product, incredible environment, and as you saw from Joel this morning, an incredible team. They have such a talent dense team in Sweden. Joel is a visionary leader, and together we're gonna light up a new Workday for Workday. So with that, I want to turn it over to Rob for an update on our go to market strategy, but I'll leave you one final message. Workday as a platform is open like never before. We are cooking on our AI agents. We're making it easier than ever for our partners to go build on them. With acquisitions like Paradox and Sana, we'll get even stronger bench, even stronger set of capabilities. So, stay tuned. Over to Rob. Peter. Where'd it go, bud? Gosh. Oh, I need a clicker. Awesome. Thanks, Peter. Super excited to, to be at Workday. It's ten months now that I've been at Workday. So you can see there's a lot of new action, I would say. But what's really what what what's really what I'm really pumped at right now, and I think, you know, you guys saw this morning, if you're in the innovation audience, you know, what where we are and what we're doing. And so I've been traveling the world, kind of talking to customers, understanding from Workmates what we need to really drive global expansion, our medium enterprise business, and where growth is gonna come from. But Garrett and I have also been working with the products because we've been aligning what we wanna do in the product to this growth agenda. We actually spend time with our teams together quite a few times, once a quarter at least, building out that plan and and deciding how we're gonna go after the market. So this is kind of a really, a team effort to make things happen. And it's setting us up with announcements today for what I believe is an incredible growth opportunity at Workday. I think it's something that I haven't seen in a long time in this industry. I feel so pumped with the opportunity to take to our customers, to just think about changing the way we do do things in the application business. And if you look at the opportunity, you know, we, even in our scale, still do a significant amount of our business with new customers. We have still lots of market to capture in the in the new business space. We have billions of opportunity in the customer base. And these two engines of net new and customer base have created a durable kind of growth model for our go to market engine. And in many cases, we're just getting started in some of these industries. If you look at Workday Federal, that's such an untapped opportunity, that we're only getting started in. If you look at the medium enterprise, we're super strong in The United States. It's incredible how Workday have grown the net new business in The US. But we have huge opportunities international to drive medium enterprise, and I'll go through that as well. In industries, we we're getting started globally in how to drive industries. Full suites and unique opportunity for us across the world. But for me, the most exciting opportunity is truly taking AI and the remarkable position we are in with AI to the next level, and we'll showcase some of that. If you haven't had enough of it today, we'll showcase a little bit more. So let's talk a little bit about net new and customer base, and that's how we orient our go to market teams. If you look at it, 40% of our business today still comes from net new customers. Think about that. 60% comes from existing customers. Think about this engine grinding through net new customers at 40%. We have 11,000 customers today, 6,000 at the core, 65% Fortune 500, and we believe there's still 70,000 customers out there in our TAM. And this is especially strong in the medium enterprise. And then you've got this engine that's driving 60% of the growth to the customer base. You think about all the announcements you made and how that's gonna drive the customer base as net new comes through comes through. We will do that in both net new and in the customer base. So there's a significant opportunity with funds, with HCM, with agents, with Workday board, with what we're gonna do with sauna to actually continue a huge opportunity here at Workday. The platform is another significant lever. If you look at how we've taken it from an extend to a totally open environment, the ability to build agents, understand data in an open trusted extensible way. We think that that is unique. And I think we don't we speak a lot about the data model. But if you just think about the foundation data model that was built here for the last twenty twenty years, means that every customer in the world has the same data model. The same object, the same definition of that object. Whether you're in FINS or in HCM, there's only one object. And that allows us to do things in AI that's remarkable. I think there are no application businesses in the world that have such a clean, pure, curated data model. And that allows us to illuminate to build illuminate agents, as Ashna presented early on, that adds tremendous value to our customers. We know what value we know how to target agents. We know which agents to build because we understand the process model. With WorkdayBuild and Flowise, our customers, our partners can now create and scale new solutions. WorkdayBuild gives our partners a completely new opportunity. And with customers, it expands the conversation. Workday Bold expands the conversation with the CIO, advances new revenue streams, makes it easier to use Workday. Right? So how will we continue to drive growth in both net new and in the customer base? The platform, as I said so we'll start with customers at the center of everything we do. That's how we built the last couple of months with this team is to focus on what our customers want and how do we accelerate the growth with them because of the needs that they have. We'll drive it with the AI AI momentum that we spoke about. We'll expand key markets, especially with medium enterprise. We're doing a lot of work on medium enterprise with work they go to change the direction. We we continue to expand our international business. We're gonna continue to expand our ecosystem, and we'll continue to expand industries. And that'll be the focus of our go to market go to market growth model that we'll continue to drive across both product and technology and the go to market. That's how we think about these things. This, I believe, is a game changer. We announced it today. We thought long and hard about how to create a competitive pricing model for AI that our customers would understand, that our customers would understand the value that they get. We wanted customers to be able to drive their AI strategy at their at their pace. We wanted it to be simple, predictable, and completely trans transparent. No hidden fees, no lock licenses, no user base cost, no bolt ons. Flex credits, the way to consume AI, the way to consume APIs, the way to consume storage, and it's all fungible, interchangeable. Completely transparent. The customer has a console, can see what they're using. And whenever we deliver an AI or an API feature or function, they have access access to it immediately without having to go through a commercial discussion with us. So all the agents that you saw that were for Feb one, those customers that have the but the today based model, when that gets the moment it gets released, they can turn it on. And we've bought full calculators for the customer, consoles for the customer, and for the sales people to be able to explain it. That will be completely transparent, ROI usage. And that'll mean our engineers are gonna have to build the best products in the world. So with this model, we believe it lowers the barriers to entry, you know, drives really durable growth because as consumption increases, customers will buy more credits. More usage will happen. And that's why we believe this model of simple, flexible, transparent is the right approach for us. It's gonna be a game changer in the market. Our salespeople are fired up. Patrick did some work with customers. They I'll tell you the feedback from our customers has been super positive. I think they've all been struggling to understand us, and we think we'll unleash, you know, a new set of areas for workdays growth. If we look at the international market, we can look at The UK playbook. We've got a great business in The United Kingdom. It's, we're taking this playbook that we use in the in in the in The UK as the major lever to continue to drive growth across the world. So you think about it. We have an we are the HCM leader. We have a verticalized go to market model in in The UK. We have an emerging enterprise model. We had a strong first half. And we can continue to invest in this playbook as we take it around the world. There's some incredible proof points of wins that we have. Some of the names are up there. But you just think about the Cathlon in France. They're running funds. They are implementing funds. If I look at DBS Bank in Singapore, in Asia, Development Bank of Singapore, funds and and HCM. And there you can read out the names of this, of Ma Son Group in in Vietnam. Incredible opportunity. One of the largest companies in that area. All going with financials and, in their case, HCM as well, so full suite. We've entered new markets. India, we announced the leader in India. We have millions of users in India already. But now we have a direct sales model, channel, partner model in India that we're lightening up in that market. We think that's an incredible opportunity that we haven't that's untouched. We will announce The Middle East probably just before Gtechs. And, you know, for us, opening these markets continues to be critical for expansion in our net new and our customer base. So we're doing this faster than ever. As an example, I think Ashna mentioned it. We'll have a data center up in the first half in India, and we're doing the same in The Middle East. We added some significant talent. Jess, Sunil, Volker, Arvind, these are all leaders, proven skill sets, know how to accelerate businesses. And we're, you know, super excited to attract the kind this kind of talent to to Workday. We will also announce the leader for The Middle East. At the same time we announce that we're entering into The Middle East. So super excited about that. Our medium enterprise continues to be, you know, a a core growth engine for us. Over 50% of our TAM is in the in the medium enterprise. As I said earlier on, The US is leading the way. It fuels 40% full suite fuels 40% of the deals in the net new medium enterprise business. And FINS is 50% of the deals. Financials is 50% of our deals in medium enterprise. With the umbrella of work they go, bringing on a Max vessel to be the product manager for medium enterprise, you're gonna start to see speed and agility driving across the medium enterprise with solution sets that actually map to those services that map to what medium enterprise customers want and integrating them from a different way we do large large enterprise. Today, we already have customers going live in sixty days with our partners under WorkdayGo, and that momentum, we believe, will continue to accelerate, specifically with NetNew. It's already, it's already showing that it was the right idea. It's been the right brand. We've got the whole company behind that. If we look at industries, I mean, this is something which is game changing and definitely differentiates us in a significant way. Today, we have over five industries with more than 1,000,000,000 in ARR. Super, super durable go to market model in this. We think other other industries will scale to that. We mentioned, what we're gonna do with frontline workers that attaches to many industries. They will continue to drive over 70% of of the workforce of the of the globe coming to play when we actually bring frontline workers into play. Our federal business, we launched Workday Government as a separate owned entity to really focus on US federal. We spoke about the data center, the solution set that we have with employees working on mission mission important stuff for for US federal. We believe that's a $2,000,000,000 opportunity just in HCM alone, and we we have an opportunity in financials as well. We also think we'll be able to take we know we'll be able to take our public sector, our business, state and local business, and, student business to places like The UK. We're already in Australia in in certain cases. So there's unique opportunity with the government. And in Singapore, we're already running a significant part of of the government there already for both HCM and finance. And if you look at Paradox, you know, Paradox is a Paradox together with highest score and a recruiting agent showcases that we have, by by far, leading in a world of recruiting and all aspects of recruiting. And you completes the whole recruiting cycle even with contingent worker. Piece that I'm super pumped with and the work that we've done is all around the ecosystem and the partners. Right? So we got 21,000 certified consultants around the world implementing Workday, driving the driving the projects down. We we actually launched the deployment assistant, guess what, to drive the the cost of projects down. We gotta do more in that space. If you look at on the sales side with partners, 20% ACV sourced through partners now, 10% of customer base expansion sourced sourced through partners. We have over a 100 apps on Workday build. Those apps customers are selling. Ashta mentioned, EU pay transparency. We're actually reselling that. So Kainos built it. Workday are gonna sell it into market. So differentiated place. Kainos has a has a significant business on on Workday Build, and I actually believe that Workday Build will absolutely expand this footprint in a significant way because you don't need to actually understand Workday. You're gonna have all these open source tools available to you, these agent builders, which you can, you know, you can use flow Flowise there. Get on the website, build yourself an agent. You'll see how easy it is. Right? So this will open up new revenue streams, new opportunities for us in a significant way. In the we opened up a reseller for the first time. We're allowing channel resellers to resell Workday. We've closed quite a few deals in Asia in Asia. That's a success model for us. We're launching it now in the in Europe. And we'll in India, we launched it from day one. So channel reselling will become a motion in the marketplace, which specifically will be, you know, in my opinion, super successful in the in the medium enterprise. And strategic partnerships, we've mentioned that a couple of times. But strategic partnerships around Chime, daily pay, this earned wage access. Right? This is the wellness solutions. This is actually an economy an economy monetizing data that adds value to our customers' employees. And again, it's an incredible opportunity in the market. Today, we've already this business is already bigger than 100,000,000 ARR. And this business, we believe, will continue to expand because the information value that we're adding our customers is incredible. I wanna wrap by going back to where we started, but I wanna basically say, I believe that coming out of rising, this is an an amazing opportunity for our sales, go to market, customer facing organization to do to provide next level changes in how we go to market and the value that they see. And this is probably the one of the most exciting times I've had working in this industry, taking solution sets, and thinking about how to actually just reinvent them in the industry. You can just imagine a front end where you're actually going to work there which looks like a search tool or a natural language processing. Nobody else in the industry can do that, and I think it's gonna ignite our sales teams. It's gonna ignite our customers, and it's gonna be a massive differentiator for us. So thank you. And now I'm gonna ask Cole, Zane, and Garrett to join me. I could feel them waiting at the back here. Two minutes forty two. Hey. Hey, Dan. Yeah. Alright. I don't think we need this anymore. Think we're done. Getting partners? You're good. Partner. Yeah. Yeah. Yeah. Okay. Okay. Great. We are gonna while they're getting ready, we're gonna go around the room. We went, a little long, but we'll try to get to as many No. I wasn't long. As many as we can. I'm gonna give them a second. I'm gonna go with Kirk Matern first while they're getting set up. Kirk, okay. We have never studied this, okay? It's the first time Kirk was here. Okay. Thanks very much, Kirk Materne at Evercore. Sai, appreciate you all having us here. A lot to digest at this event and, at the keynote earlier. Maybe I'll start, and maybe this might be for Garrett, but, you know, if I came to Workday five or six years ago, there would be that Frankensoft picture on the on the screen where it say, hey. Look. You can't acquire and you can't bolt on new technologies to an older core and really innovate. And I'm sure if I went down to the valley today, people would say, well, Workday is, you know, buying Asana and they're just putting a new skin on an old core, like, that's not, you know, that's not how you do it. Could you just talk architecturally why M and A makes sense in the age of AI free wall? Meaning, why is the combination of Asana and the core, you know, better than, say, a native AI solution? Because I I think the pushback is gonna continue to be, like, these native guys are gonna come out of nowhere. So I'd love for you to answer that, if you could. And then just one clarification, Zane. I assume the revenue guidance includes M and A. Just an easy one for you. Thanks. Yep. Okay. Let me start. Yeah. So great question. So first of all, how you integrate with AI is different from how you integrate business classical business applications, if you will, right? For AI, the integration model really is contingent on, a, having a unified data stream in which you can integrate both data assets, you know, to build AI models with. And then secondly, to your question about the core, what is the surface that you're giving an AI system to interact with? So if Workday would have, you know, just, you know, left the core as it is, right, what you said, right, just basically trying to bring AI over on top of it, that would be very ineffective. And quite frankly, I think, as I said, this is, I think, what you see from many vendors. What Workday has done, basically, is provide a system which allows two things. One, that we constantly accumulate and curate the right business context for AI models. You can think of that like think of that like a Google search engine inside of Workday that AI models use to understand what's going on in the business context. That's something that Workday has built as a part of its core. And the second thing that Workday has built is basically opened up the workflow model that Workday has, right, the business processes with APIs. So it's not driven via classical UI anymore, but through APIs like MCP, the modern context protocol. Right? We are now an AI agent, can understand the context from that context service I was speaking about, and then basically find the right business process API to take an action on. So there is system engineering work in the call of Workday to interface with AI. And what we have done, right, and what Peter is focusing what I'm focusing on, actually, is the art of designing an AI system. AI systems are complex. Right? You have to think about many, many components and how you build them in a way so you can leverage all of that rich investment in the 70,000 business tasks that Workday has. Because the challenge, you know, just to tip that off, but you said, right, why not an I native start up? My question would be, well, there is it. The reality is, right, that white coding, cogeneration, they're really good for a specific for a specific set of tasks, if you will. Right? They're very good for function augmentation. They're very good for small stand alone apps. But when you think about a very large network of 70,000 of tasks, you know, that interface with each other, basically, you need to build a process model for that. You have a process model architecture for that. You have a state model for that. You need to have a very scalable, very efficient way, very resilient way of providing that in the cloud, right, with high margins and high reliability. And all of this is the foundation that we are leveraging. You can think about AI, last comment, as an accelerant. AI is gonna make everyone faster. No question about it. I'm a software engineer. I learned a trade early on, and I've worked as a developer for many, many years. AI is gonna make every developer faster and every developer more productive, but that means every developer. We at Workday, we have now thousands of engineers using Cursor, Bold, and all of the latest and greatest AI engineering tools. So all of our engineers, they're getting 10 times faster as well, right? So we have 10,000 people in product and technology. If they get 10 times faster, you're going to outrun any startup with 10 people going 10 times faster. And, Kurt, just to be clear, our philosophy around AI and acquisitions hasn't changed. So as you look at that framework, it includes M and A as it always has, especially tuck in M and A. We would call out anything larger than that were to apply. And as I mentioned earlier today, it does not none of our guidance includes Sana, obviously, at least for this year. Right in the middle here, Mark Murphy with JPMorgan. Great show. Thanks for having us. So to me, the rocket ship in the portfolio, you know, based on everything you show on screen, is actually hired score and the recruiting agent, you know, you have this two fifty percent growth in five quarters. And, I think it's underappreciated. It also feels like a vector, where machine learning is ultra leverageable. I mean, the metrics that you're showing makes it look like there's a bigger efficiency gain, adopting that than if a developer is adopting GitHub Copilot or Cursor based upon those metrics. Can you talk about what is happening there, that is driving such a vector in the recruiting arena? And almost more importantly, is that a precursor to what's going to happen in other adjacencies when you say, okay, there's an AgenTic model that is starting to click and it's starting to fire? Is that what it's going to look like elsewhere with that kind of hyper growth rate? Yeah. Maybe I'll start. Thanks for the question, Mark. Yeah. So the recruiting agent, obviously, we acquired about eighteen months ago through rapid growing, you know, part of our AI strategy. And it's quite simple. You put in a recruiting agent, and you pretty quickly can see a 50% increase in productivity of your recruiters. So it's as much as a cost avoidance as people are still growing their headcount, they're avoiding having to hire additional recruiters because of the power of the recruiting platform itself called HiredScore. On top of that, there's additional value. Customers see an acceleration in time to hire of up to 40% when they put in a recruiter agent. So it's driving productivity or people, and it's driving acceleration of people as you onboard them. And I think what's really powerful is how we didn't stop there, because that's for back office workers. It's for white collar workers. And with our announcement last month that we announced that earnings, you know, a few weeks ago, and with the addition of Paradox, we've taken a conversational AI approach to the front line worker, which means it's mobile first. And now we have the best suite from an AI recruiting platform in the industry, from back office workers to front line workers across all types of workers and full time employees contingent in gig workers. And all of those are quantifiable. If you saw some of the demos, I don't know if, Mark, you were at the session today, we showed the demo. One of the customers of Paradox is Chipotle. And they talked about the value that they get out of the platform today and how quickly they can continue to bring people up in a very rapid way. And then we took it a step further. We showed an agent specific to the industry, how you can start to optimize your workforce when you need more people because people are calling in sick. So it all starts to come together, and it's very quantifiable. This is why I said in my talk earlier with Justin, it's not about the quantity of agents, it's the quality of agents. And if you can drive true business outcomes, people lean in and buy into it. And then Carl, to add to that, to your question, we have multiple agents where we see that momentum. Contract intelligence agents, incredible momentum, taking down, you know, contracting times, you know, efficiency gains, 65% and greater. I think AdventHealth, one of our customers took their contracting cycle from one week down to one day. And per your question, the recipe always is, if you have high volumes of work, their human labor usually is the major bottleneck either in time or cost, AI can come in and basically take that inefficiency and turn it into a much lesser software spend compared to what a human spend would be. That's what we are seeing across the domain recruiting, contracting, frontline work, all of our agents. And like Carlos said, right, we differentiate by basically our quality criteria for releasing AI is measured by ROI. Basically, we set a business objective in saying, what does this agent need to return for it to be financially viable? And once it meets that metric, we release it. And we have incredible momentum for the year. Now, and Mark, I just want to make sure you understand. Yeah, recruiting agents growing, but we announced last quarter Eversource growing 100% quarter over quarter. And it's not a million dollars. It's growing fast. ExtendPro is growing. It's doubling. The amount of people wanting to integrate, build agents, or bring out their own AI solutions into Workday is doubling year over year. So, it's not an agent. It's our entire suite that we brought to market over the last year. And I think that's only going to accelerate with all the great announcements you heard today. Customers have wanted the consolidation in these areas. They don't want big solutions all over the place because it's really hard to stitch them together. So even if you're in a financial institution, like one of the large banks, you need frontline workers. That's an important part of your hiring. It's not only that you need highest score for the skilled workers, you need both. And so this is completing, I would say, what our customers have really been looking for. It's Brent Thill with Jefferies. Zane on the margin guide. Good to see the commitment to mid-thirty percent. Maybe you can help us walk through how you get to that level. And one of the questions we've gotten is back when you announced the RIF, you mentioned you would hire all those people back. You've hired about 1,000 of the seventeen fifty back, I believe. So are you still committed to hiring back or are you going to slow the headcount pace? Is that one element to helping on the margins? Thanks. Yes. Brent, I'd say, first and foremost, most growth helps all, right? So as we grow, we get more efficient and the whole platform becomes more efficient. We are hiring right now. And how we hire and where we hire is what makes a difference as well. I mean, we're becoming more and more global, so we're doing more hiring internationally as we follow the sun. And as we you see with whether it's go to market and and a lot of the, even the AI and the acquisitions are international. So you'll see us do a little bit more of that. And over the last number of years, we've shown progress across a number of areas, and we're very thoughtful in where we grow, how we scale the business, how we look at each functional area with the people, the process, and the systems I talked about. So look, I mean, we are very thoughtful. We are hiring back. I think, you know, we were more vague on the timing. I believe we'll continue to see that growth. But all that being said, we're also being very thoughtful about those investments. And where we see more growth, we'll invest more, and where we see less, we'll pull back. And that's what you've seen us do over the last period of time here, and that's what you should see us continue to do for the next number of years. But it's with that same diligence. And then, you know, we highlighted all the AI that we're building into our own products. I mean, we're using AI across this company, and we're leaning in heavily, and the teams are getting far more productive. That it's not just being productive, it's actually then holding them to that and driving that productivity across the org. So it's going to be a lot of work. I mean, trust me, we don't put up these numbers and say that they're easy gets, but we'll continue to be diligent in how we grow the top line and then at the same time grow the bottom line. Hi, Raimo Landry from Barclays. Rob and Karl, one for you. As you go out there and meet new clients, international going down market, etcetera, it's not that these markets don't have solutions at the moment or they have something. And so it's kind of a replacement market. What are you seeing in your customer conversations about like what's driving the change there? Where are they with their old solutions, like first generation solutions and etcetera, to kind of do the change and come over to you guys? Thank you. Yes. I mean, I'd say on international markets, first of all, we are super successful in The UK, in Australia, New Zealand, Canada, and The US, obviously, with full suite. And what I would say in in a number of these markets, the the differentiation in why some of the changes happen is because the industry solutions are unique to to how we operate. They haven't seen it in areas like student and state and local and so on, health care. So those those create changes where customers will actually replace the solution. But our customers are getting tired of some of the older solutions out in the market, and they're looking for new opportunities with new companies, with new ideas that are future proofed the ERP system for the world of AI. And we feel like it's now ready and ripe for us to go into those markets and and look for those replacements. With HCM, we kind of lead that the world with finances. Clearly, we have to differentiate with what we're doing in AI. And that's going to make a huge difference. Yes. I think Rob said it well. I'd add two things. Listen, as we've gone down market, a lot of these people are in, let's call it, 1,000 to 3,500 number of employees. They have multiple point solutions. And if they expect to continue to grow and scale over time, they're looking to consolidate all those point solutions, which is where we often talk about our full suite momentum in the medium enterprise. They can come to us. They can replace NetSuite and maybe another HCM provider into a full platform from Workday and give their users an incredible experience. And the second thing I'd say is a lot of the people that we engage with and we inflect with at that stage are people that want to grow well into the future. And they know they're not going to do it on their current model. Some of them actually are it's a business model decision. They're working with an EOR, an employer of record, and they're saying, no, we're bringing that in house because we're scaling. We want to go bigger, bolder, faster, and we need a platform to do that. So I think it's a business model, and I think it's a consolidation play around one platform delivering all your services from HR to finance and planning. And I think that's a different discussion than a lot of them are having today. And the last thing is, there's typically one buyer. In the enterprise up here, we all go and talk to HR, we go talk to finance, right, we talk to the IT organization. There you find someone who owns all operations and all systems, and it's a faster, quicker sale. Hey, guys. Brad Sills over here at Bank of America. Thanks so much for hosting a great event. A lot of great innovation on display here at the conference. Wanted to ask a question of you, Zane, on the margin framework here, With the different levels of margin expansion and different levels of growth assumption, what are some of those discretionary investments that you could either pull back on in a lower growth environment or accelerate sorry, accelerated a lower growth environment or pull back on in a lower growth environment. And I guess, just it sounds like AI is not discretionary. That is something you'll continue to invest in any scenario. So just where are the discretionary areas of investment? Thanks, Chris. Sure. Yes. As we if you recall, I shared on the first slide all the KPIs that we look at with a number of the growth vectors in the company. And much like all of you, look at your portfolio, we have a portfolio of great opportunities and assets as well. And candidly, as we look at some of them that maybe aren't growing as much and then others that are, as we look across all of those KPIs and look across that portfolio, there are always opportunities, whether it's leaning more into those that are growing more, looking at more countries, thinking about that partner relationship a little bit differently, or otherwise, you know, on the other side of it, if you're growing a little bit slower, we look at how many resources we're putting into that part of the product. And, you know, Garrett and the team are doing a great job in P and T, really assessing all of that, doing a zero based budget on where are we putting our resources, where are they paying dividends, and how can we continue to gain efficiencies throughout the organization. So what we've committed to is regardless of the growth, you're going to see improvement. In some cases where we're growing more, it may be through more tuck in acquisitions, other elements that may have slight dilution if you think about margin, but then you're getting that higher growth rate. And at the same time, if things cool off a little bit, we'll continue to find opportunities to pull back where we're not seeing the returns that we would otherwise expect. And that's the dynamic can't believe that's the dynamic we've had all along, but that's how we look at the next number of years, and we feel like we've got this broad portfolio and tremendous opportunities. And what I really appreciate is this is the team. I mean, we're 20,000 strong that when you say, look, we really need to conserve here or lean in here, everyone gets on and does it. So it's an impressive opportunity ahead and a great organization to continue to drive that performance. And Brad, I'll give you one more that we don't often talk about, but it's happening real time inside the business today. And it's what I describe as organizational efficiencies and organizational design. And what I mean by that, both Rob and Garrett in the last couple of months have rolled out new organizational models. And as we've done that, we've taken silos, if you will, of operating people in each of Rob's functions. Now there's one operating model for all operations globally. Garrett had a bunch of fragmentation around the platform, around the UI, around The U. S, around security. We're consolidating and streamlining the organization model, and with that comes efficiencies. We don't need more headcount to drive the business forward. We have enough headcount, but we weren't aligned in the right way to really drive the business in the most efficient effective way because as you grow silos emerge. And to grow faster, the silos need to come down, and I think we're doing that. Hi. I got the mic. Alex, you'll be next. Thank you. Kasper Lundgren, Goldman Sachs. A terrific financial framework and I really love the confidence you have in the business. You're buying back stock margins, up to the right. More of a technology question, you've seen that in prior tech cycles that there is a disruptive architecture, disruptive business model. Workday itself grew on the heels of that disruption. As you look at this cycle ahead, there is a view and I would love to get your retargeted view that the SaaS to AI architectural transition is very disruptive. There is a new stack for AI and it's about the context, compute and models and that SaaS gets relegated to just basically a data context layer. You open up the APIs, there's going to be a new breed of agents. The value is not short of that, agent technology. And the VCs are very excited about this new opening up. In fact, some of them have been posting on Next saying that SaaS CEOs better watch out. You're going to be whatever. Right? What is wrong with that argument? You know, that's, you know, there's something right and there is something wrong with that argument. And, you know, I you know, well, I guess it makes for a good headline if you are one of these AI start ups. So what's right about this argument, Cash? Of course, you need to architect differently for AI. Right? And this is my big criticism with a lot of the other vendors who are not doing this. But basically, they have legacy and AI and hand it both over to the customer and saying, there you go. And this is, I think, where there is such a big of a disconnect between the excitement and the promise of AI and enterprise space and the real value delivery. So that's the truth, right? AI requires dedicated engineering. And that's why at Workday, right, we have dedicated AI engineering building an AI ready core. Right? So that's that's a part of it. Right? You need to do the heavy work. It's genuinely changing major parts of the stack. And then, you know, there comes the public argument is just, you know, completely wrong. And that is that just because, you know, how you engineer an AI system changes also means that suddenly everything that you have described on a described on a semantic level. Right? How a business process operates, what that business process is. We just talked about recruiting and contracting. Right? How these function operate, what the business contact is, what, you know, follows after what. Right? What are the steps? That that conceptual model, right, that still needs to exist somewhere. Now you could be a radicalist, right, in saying, well, I'm just gonna assume. I'm just gonna assume everything is gonna just sit right into the model. And theoretically, in a thousand of years, I don't know, you don't know what happens in a thousand of years. Maybe, that's possible. But today, there is a single piece of research, frontier eye that indicates that we were anywhere close to being there. So what every vendor is doing basically is building a system that runs a workflow with AI on the side and constantly basically making sure the AI stays connected to the process. It's the other way around. Right? It's not like the AI is driving the process and using the APIs. The process is running and driving an AI thing now to replace points where human judgment came in. Right? That's the breakthrough of AI. It's computational judgment in a way. Right? It takes what we humans do and gives it a computational form. And we have processes like in recruiting. Where you got a resume, is it a good time or bad time? I don't know. On contracting, right, what are good terms, what are bad terms? On shift management, someone calls in sick, what do I need to do? Right? That then these processes are run instead of stopping and saying, well, I'm now gonna ask a human. It's basically having an AI operator taking that part over and making it automatic. That's the current state of AI as it exists. It replaces that piece. I'll tell you a very good question. Right? What it requires now for the vendors of the future is saying, we design a business process system that works with an AI co intelligence on its side, but which is designing a workflow model, which basically constantly drives the AI and not the other way around. Yeah, Kash, let me let me, I am not nearly as smart or technical as that young man over to my left, that's why I hired him. But let me just simplify it for how I think about it. Most AI solutions in the enterprise are very task oriented. They're accelerating tasks that we do as humans. That's the tip of the iceberg. There's going to be a whole bunch of that. The real power is when we transform the business process and the workflows of the business. That's where you start to get sub function change and efficiencies. That's the power of AI. And to do that, you have to have the workflow, the data and the context. We have all. Everything else is task oriented. You play with Chad GPT, you play with Jim, it's all tasks. The real business value is when you transform business through the use of AI. And quite frankly, we're not even engaging with it. It's happening on our behalf, and we don't even know it. That's real AI in the enterprise, and that's what we're doing. Hey, guys. I don't know how to follow, Cash's question. But if I think about the kind of two things that really stood out to me today, it was the SAMA acquisition and the way that you described it both as a UI for the new workday as a almost like a enterprise search capabilities as well as an agentic, system. So first, I just want to understand how we think about the monetization of SAMA, whether that's something that's just AI diffusion to everyone, that's this is the way we're all going to interface and interact with Workday in the future. And then secondly, the AI, both the $450,000,000 ARR and the, I think, the $150,000,000 or $100,000,000 Agentic. As we think about the transition to a platform, the monetization model going towards more consumption transactional, How much of the growth kind of prism that you've laid out, when do we see that consumption element start to actually kind of layer in and factor into the model as a percentage of the growth rate? So a couple of things. I think Sana, monetization and the revenue. Yes, please. Yes, please. Yes, we are incredibly excited about Sana. And even because of in most technology innovation cycles, there is also profound change in basically how people are consuming information. Think about mobile, for instance, and iOS. We think about Sana like the iOS for enterprise in the future, and we see it being like a power combination with Workday because we have incredible distribution. We have 75,000,000 users already, and you can 100% expect us to leverage that to bring Sana as an experience to every one of them. Now the beautiful thing about Sana is that it's not just an incredible enterprise search and enterprise action experience. It also gives us the opportunity to encompass many, many more workflows that people are not doing in Workday to day. People engage with Sana today on average seven times a day in their current form. We truly believe, right, if we bring this to all of our customers and we open up that AI extensibility for them, that many, many, many things that they are doing today with legacy ticket based automation, your programmed exits, you know, DIY AI systems, they will just naturally fall into this. Right? Because it's so easy. The art of good engineering is making it so easy that people almost fall into success with it. Right? They cannot even imagine another way of doing this anymore. And that's what we are creating with the Sana experience. And for the commercial monetization option, before I hand it over to Rob, with flex credits, every customer gets a part of that in their base subscription, which means that it's always on. Right? You don't need to do anything. It's just there. It's working for you. But it's it's a base entitlement. And as you go beyond that, customers can subscribe to more, you know, as the usage expands. So maybe Rob, if you want to add to that. So when you think about flex credits, you know, the growth comes almost immediately. So because customers have they have all the agents, APIs, they have they have available allotment with their base installation, they switch it on and then they start consumption usage. So when you look at you know, we released say we had four agents. We got out of 12. When we hit Feb, we had another another 14. We've got 36 agents. So the the and and and work their bills producing APIs. Right? And so when you talk about Sonra's gonna be running a flex credit model against that, the more they use it, the more we're gonna get usage on the model, the more it's gonna drive revenue revenue growth in into the future. So the model is gonna be, you know, massively dependent on the quality of the applications and the usage that companies drive. The go to market model will will change because customers will have access to it. The beauty is now we have to activate the customer, let them know what's coming, the value that they're gonna get, and then our teams are gonna work with them on value equations. This is what the value is. This is how it produces. We have calculators for for customers. Customers will have access to the calculators themselves. And so we believe that there will be a flywheel wheel, not only with agents, but with creating agents, building agents with with FlowWise, and then driving the whole workday build economy. So as more and more marketplace opportunities come, maybe it's driving more APIs and more usage. And that's how we think we're going to drive it. And we're you know, it's a unique opportunity to drive immediacy because it's built on top of existing solutions that customers and the value is very, very clear. I just want to add on learning. Sauna is a significant part to our learning application. One of the things that new learning needs is experience. People don't wanna work with content stuck in filing cabinets anymore. They don't think it's that high quality. Sauna allows individuals to create learning journeys for themselves on the fly. So if you wanna learn, well, I don't really understand what prompting is, and I wanna understand prompting with Workday. It'll create a learning experience for you immediately. And when you think about us going into the medium enterprise, the medium enterprise don't need the filing cabinets. I can tell you that now. What they need is an experience. And so when we spoke about getting really focused around the medium enterprise as well, it's bringing those solutions down and and and really in consumption pieces that will drive when the CEO looks at it and says, oh, I can use Workday now. Oh, I can create a learning journey. Anybody can do that. Oh, my my business analyst can create an agent. Are you serious? Show me. Sonra has basically a no code agent builder. Flowise is a low code agent builder, and that's gonna be game changing in many, many markets that we go after. Yes. And on the business model, Zane and I laid out a framework and thanks to the work of Julie and her FP and A team along with a combination of Ali I'm getting there, dude. A combination of Ali, who runs strategy and then Rob as well as Garrett, we have these interlocks where we think about, hey, what have we seen in the early traction of our AI adoption? You saw it, four fifty in aggregate million now, one hundred and fifty year. And then we look at what we have coming in the road map, and we have factored that into the growth plans we articulated. But it's still early. Like, who knows? Some of these, like, HiredScore took off way faster than we anticipated. Eversource is doing that. So we're going to keep updating and iterating on our model between that interlock that takes place between our strategy team, our FP and A team, our go to market team and our product team. And then Zane and I look at that, and that's what gives us the framework and the rubric to think about how we're guiding in the future. And obviously, we'll continue to be transparent with that as we build momentum, especially with the flex credits. You got the phone set. It was a good question. Stefan Slowinski from BNP Paribas. Thanks for all the presentations today and for taking our questions. Zane, just wanted to follow-up on that financial model, the 20% earnings growth and free cash flow growth per share, out to 2028 is certainly impressive. But just wanted to maybe double click on the top line outlook and how you see that growth CAGR and growth path through to 2028. Do you see a potential, I guess, slowdown into next year from the implied growth at the end of this year? Is there anything that you're seeing there in particular? Or is that just kind of caution at this point? And then any potential reacceleration in 2028, is that when we could see flex credits come through or more of the AI contributions driving higher growth? Anything on the kind of trajectory there would be appreciated. Thank you. Yes. I'd say, look, I mean, we'll give you a lot more insight towards the end of this year in how to think about FY 2027. We're very excited about the longer term growth, both the organic growth that you've seen, the go to market opportunities, and then the inorganic growth that we've highlighted just more recently. Obviously, we've got some great opportunities to continue to grow this business. We don't want to get ahead of ourselves, which is why we laid out the framework the way we did. But as you can tell and Karl mentioned earlier, we've got a heavy growth bias. And with that free cash flow, the reason we laid it out the way we did is because of the rule of you can actually drive free cash flow under a wide variety of growth rate scenarios. And that's what, you know, we're here to execute against. Our natural bias is to grow more, and, obviously, we talk about growth a lot, and we talk about all of these tremendous opportunities. And that's what translates into the strength of the business and the strength of free cash flow in the business. And then, of course, with the, including that buyback, we see tremendous opportunity on free cash flow growth per share. And we continue to be diligent on that front too. So more to come later on this year as we look into next year. But as you can tell here, we're very excited about the growth beyond. Okay. At the risk of some groans in there, we're going to have time for two more questions, and then we do have time on the other side of this. So we're going to go right here. Justin is literally on his knees here just trying to hide from us, I'm convinced. Hey, thanks, Justin. Karl Kierstitute at UBS. So maybe a two parter. So the decision to trim your fiscal twenty twenty seven from 2015 to 2013, is that just good advice from folks in this room to have more conservative guidance? Or Zane did something perhaps changed in the last year. I know it's not a super robust environment, so maybe it's that it proved to be a little bit tougher than you thought. And then maybe the second part is to be clear, in that revenue guidance, how much AI uptake are you assuming in there? Like when are these flex credits really going to kick in? And is that a would you deem that to be a big contributor to your fiscal twenty twenty eight outlook? Yes. I'll start. And I know Carl is going to be anxious to jump in on this one too. I like responding to Carl. No. I mean, obviously, I wouldn't say there's been a shift in guys. I think what over the last year or so, a, you know, I'll point out that we have held to a number that we put out here a year ago. All that being said, we always take criticism, thoughts, and and advice from anyone in this room, so we're always good listeners. Look. As as Carl mentioned, we wanna put out a number that, that we feel good about, both with the things that we can and the things we can control. And there's a lot out there, and we've experienced it this year with certain elements where you can control and we can lean in more and other thing other elements that you just can't. And we believe we've got a good guide. We believe we've got a very strong diverse business and that's what we've articulated. There are a range of outcomes and those of you who we spend a lot of time with always tell us, look, what we care about is where you are three years from now and the investments you're making to deliver three, four, five, six years from now. And that's what we're focused on. And in a few instances, there are areas where we otherwise if you wanted to dial up growth more one year versus another, you may change your view on that. You may not do some of the, go to market actions and some of the geographical growth that we're doing today, because we know those are only gonna pay off two or three years down the line. And those are the types of things where we're optimizing for the midterm. We wanna be thoughtful around, you know, what next year looks like. We love to always beat, raise, and continue to drive growth in the business, and that's what we'll execute against. But we just you know, the dialogue that we had with Carl was that was a good number to put out there. It's within the framework, that we feel very good about. I know you're on the line. Yes, Carl. This is not about FY 2027. We tried to lay out a framework for the next three years. We tried to give you a number that we feel good about and we think we're gonna be able to hit. And I anchored you to 13 because I feel really good about 13 next year. And if things go our way, we hope to, you know, drive that, you know, north of there. And I I I don't wanna keep putting a number out there like I do every quarter with all of you, and you question us, are you going to get there, are you going to get there? We get there, we get there, we get there. We're putting a number out there. I feel really good about it. It's durable growth at scale for the next few years, and I think we're going to drive really strong results against that. And then as far as the Flex credits, listen, it's early. We just launched it today. It actually goes into production in the New Year, really, in February. We don't know the impact it's going to have. But as I said, we're planning for it to have impact on the business. If If it accelerates faster, that will take us north of the 13 that we're guiding for right now, at least for the next few years, and take us towards the high end of the range. But I don't want to put a number out there, Carl, that you don't believe or we don't have confident in conviction that we can hit. And we can hit these numbers over the next few years. Thank you. Hey, you guys. This is Keith Weiss from Morgan Stanley. Right in the middle here. Hi, Keith. How's it going? Good to see you guys. Right in the middle. Exactly. Tried to hide, but I couldn't. Thank you for an excellent presentation. One of the things that struck me was the scope of what you guys are trying to do now. And it's not just the TAM number. You gave us a huge TAM number of $188,000,000,000 but it's the types of things that you're looking to do going forward. Right? It's not just about managing people and managing the finances, which was the core of Orchid, but you're also now going to manage the agents. And a lot of us think of agent management as something that's more technical. Maybe, like, ServiceNow does that. You're also looking to automate workflows across the organization. And we just think of that as like a workflow automation platform. Maybe a UiPath does that. And now Asana, it makes it seem like you guys want to be the user interface into what information workers do all day long. We thought of that as something that Microsoft does or maybe Slack does within Salesforce. So it seems like the the extent of what you guys are trying to do is much broader. How do you think about your right to win? When you talk to customers, what makes you guys feel comfortable that Workday is the right platform for doing these parts of the equation that a lot of us thought would go elsewhere, a lot of us thought would go to other types of dentures? I'll let Garris start and then, yes, I'll follow-up. Definitely. Thank you, Karl. We wouldn't go into these markets if we didn't think we had a right to win and if our customers weren't asking us to enter these markets. Really important, Keith. Yeah. So first of all, right to win, definitely, Keith, look, we are playing to win. We are at the table because we want to run it. So specifically to your question, right, the place that we are the place that we are calling, if you so will. First of all, with Sana, let's just look back from the experience. There is not a single solution today in the market which does what we can do together with Sana. Sana basically is going to revolutionize the entire UI experience for Workday in the ERP space overall. And, yes, that will allow us that we can accomplish tasks that we couldn't before. We just talked about this. AI gives everyone incredible latitude, including us. So, of course, when we have the best user experience for the AIH as an enterprise solution, of course, we're going to leverage that to go into areas where we are not as today. Our customers will build their agents, like Rob has said, with Zana's no code agent creator. Our partners will build them. We're seeing this today with the Merkney marketplace. It is natural for us. And Merkney has been doing this. Merkney expanded from white collar to Contention to Gitwork and onto frontline. Those are all extensions to our platform. Right? And Sana is basically driving this from the user experience first by creating this knowledge and AI experience that frankly, no one has today. This does not mean that they're going into office productivity at all. Right? You can, you know, give Sana a document in Word. You can link Google Doc into it. That that's all part of the ecosystem. Right? And we're not trying to be a productivity suite at all. Secondly, when you spoke about, what we think about our platform strategy and workflow automation and if this model looks like a UI path or ticket automation system, people are doing this with Workday today. And it's what Carl has said. Enterprises are complex. Every enterprise platform is an integration platform. I worked at SAP. I have seen and done it firsthand. I worked at Google. I've seen it from the other side firsthand. Regardless of who you are in that space, customers are building, extending, and working with your platform in various ways and build own workflows with it. So we have customers coming to us and tell us, we wanna do more with the assets that we have in Berkeley because two of our key assets, workforce and financials, live inside you. You're running major processes for us, you know, from, you know, writing the invoice to closing the books, you know, from recruiting to someone going to retirement. These are large process chains. And us offering extensibility, that is the definition of right to win. I think it's comical that some vendors say we have an IT based solution, and we can offer an automation suite around you. Right? It makes zero sense. It's the wrong people. It's other ones building it. The context model is different. It's truly us fulfilling what I think is an unmet need. And as I've said, I believe because we are doing this in a much modern modern way that everyone else is doing it, it will naturally expand. But our core focus is gonna be around people and money. And to your last point, agents. Maybe a misconception here. Right? We are not trying to be a technical infrastructure control plane for AI. You said it. Right? There are companies doing their hyperscalers are doing it. Quite frankly, everyone has them. Right? Everyone has one version of an agent control tower. That is not our strategy at all with with agent system of record. Agent system of record is fulfilling two very important needs. One is enterprise AI security. When you log in, if your company is using Workday through Okta, do you know what Okta does? It checks in Workday if you're currently employed at your company, right, if your user principle is still valid and still exists. So there is an interconnection between the security model and your workforce model. And with AI, it's going to be the same. You heard this today with Microsoft and intra ID integrating in Workday. So we have the same integration on the security plane between your digital workforce and Workday as you have with your human workforce. And then secondly, we talked about AI accuracy. Giving AI organizational context matters a great deal because an AI agent behaves differently if it's supporting a sales team in North America than when it's supporting a services team in Germany. And that context, where does it exist? Right? All of that information about all of this process model, it exists in Workday. We are not a technical infrastructure player. We are a business application platform. And in ASOR, we are giving AI agents, our owns and for party agents, the business context. We are a business control plane, if you will, for AI, and that's uniquely valuable. Doesn't exist in the industry, and that's why you see Microsoft, Snowflake, all of these other vendors partnering with us because they understand this allows them to take AI from a tech play to an enterprise play. Yeah. And Keith, the only thing I'd add, Garrett said it so well, you mentioned we're doing a lot. We are. But there's nothing that we're doing that is not tightly aligned or coupled to the core platform of Workday. Exactly. We're bringing a new front door to Workday. We're optimizing workflows in Workday. We're bringing agents to market for planning, for finance, for HR, for industries around Workday. We're not going into an analytics market. We're not going into some new ITSM market. We are focused on driving value that our customers are asking us to deliver in their existing platform. So it sounds like a lot, but it's all in the desire and hope of driving deep value to our customers in the adjacent markets that they're asking us for. Okay. We are going to close I'm going to turn it back to Carl just for a few closing remarks, and then we'll, Yeah. Well, first, I'd like to thank Justin and Annie, the two people. Give them a round of applause for putting this on. They do an amazing job. And as you could imagine, there's a tremendous amount of work and effort that leads up to a Financial Analyst Day. And I sit up here with, I think, three of the strongest leaders in our industry, them along with the other 20,000 workmates that I get to serve alongside of. They're working hard. And I'll say it again. We're underappreciated and we're undervalued, and we're going to innovate like we've never done before, and we're going to drive our customers in our industry well into the future. Thanks for joining us at RFAD. Thank you.