Workday Named a Leader in 2025 Gartner Magic Quadrant for ERP for U.S. Local Government

Workday, Inc. (NASDAQ: WDAY) has been recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Cloud-Based ERP for U.S. Local Government, based on its Workday Human Capital Management and Workday Financial Management platforms. Gartner positioned Workday highest in Execution and furthest in Vision.

Workday's unified AI-powered platform enables U.S. local governments to streamline operations, enhance workforce management, and improve financial oversight, resulting in greater efficiency and faster service delivery to citizens.

Customer highlights include:
• Pima County, AZ: Improved efficiency with simplified systems.
• Clark County, WA: Achieved 60% faster payroll and $1.6M in annual savings.
• Tulsa County: Reported better turnaround times and service quality through real-time reporting and self-service tools.

The full Gartner report is available for download at Workday’s website.

Workday Launches Next-Gen AI "Illuminate Agents" to Revolutionize HR and Finance Operations

Workday announced a new wave of AI-driven Illuminate Agents aimed at transforming HR and finance processes by enhancing productivity, improving compliance, and accelerating decision-making. Introduced at its headquarters in Pleasanton, California on May 19, 2025, these agents are designed to automate complex workflows and empower employees with faster, smarter tools.

New agents include:
• Contingent Sourcing Agent: Streamlines hiring for temporary roles.
• Contract Intelligence & Negotiation Agents: Automate legal review and contract drafting.
• Document Driven Accounting Agent: Extracts data for automated billing and invoicing.
• Frontline Agent: Assists with absence reporting, shift pay, and compliance for frontline workers.
• Self-Service Agent: Provides instant help for employees and managers.
• Supplier Contracts Agent: Analyzes supplier agreements for compliance and opportunities.

These additions expand the Illuminate portfolio, which already includes audit, payroll, and recruiting agents. Workday’s AI system is built on over 1 trillion transactions annually, giving its tools deep business context.

Some agents are already available, while others will roll out to early adopters later in 2025, with general availability in 2026. The innovations aim to deliver measurable business value and position Workday as a leader in enterprise AI.

Outdated HR Tech Costs U.S. Government $1 Billion Annually, Workday Report Finds

A new report by Workday (NASDAQ: WDAY) reveals that outdated federal HR systems cost the U.S. government nearly $1 billion each year in lost productivity. The study, based on a survey of federal HR leaders, shows that nearly half of their time is spent on manual processes and system errors, while only 48% of agencies consider modernization a priority. Workday urges the adoption of automation, analytics, and secure digital solutions to improve performance and reduce inefficiencies across federal agencies.

Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people, money, and agents, plans to announce its fiscal 2026 first quarter financial results after market close on Thursday, May 22, 2025. The company will host a conference call at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to review its financial results and business outlook.

Workday Launches AI Agent Campaign with Rock Legends Stefani, Stanley, and Idol

Workday has unveiled its latest "Rock Star" campaign at The Masters, featuring music icons Gwen Stefani, Paul Stanley, and Billy Idol humorously adapting to corporate life to spotlight the company’s advanced AI agents. The campaign playfully contrasts the world of rock 'n' roll with business, emphasizing how Workday's AI helps office professionals become "rock stars" in their roles.

The two commercials, “Carmen the Rock Star” and “Goodnight Rock Stars,” highlight the capabilities of Workday’s role-based AI agents, which can perform hundreds of tasks across functions like payroll, recruiting, financial auditing, and succession planning. Unlike traditional task-based AI, these agents are designed to streamline workflows across entire roles, freeing employees for more strategic work.

Chief Marketing Officer Emma Chalwin said the campaign reflects Workday’s mission to enhance the future of work through AI and its value of having fun while helping customers excel. With over 11,000 organizations using its platform, Workday positions itself as a leader in AI-powered workforce management.

Workday Launches AI-Powered Contract Intelligence and CLM with Evisort Integration

On March 27, 2025, Workday, Inc. announced that Evisort's AI-driven contract intelligence and lifecycle management tools are now integrated into its platform. The new offerings—Workday Contract Intelligence and Workday Contract Lifecycle Management (CLM)—are designed to transform contracts into strategic business assets by extracting insights, identifying obligations, and surfacing risks hidden within unstructured legal and financial documents.

These solutions aim to help organizations accelerate operations and reduce risk by enabling visibility across departments, from HR to procurement. Key features include natural language AI queries, real-time contract analysis, and automated workflows for drafting, redlining, and approvals.

Workday’s Contract Intelligence tools are already delivering results. NetApp reported saving thousands of hours and millions of dollars by using Workday’s AI extraction and automation technology. Workday CLM is also recognized for accelerating contract approvals and improving compliance.

Both solutions are now available to Workday Human Capital Management (HCM) and Financial Management customers.

Workday has been named a Leader in the 2025 Gartner Magic Quadrant for Higher Education Student Information Systems. Its Workday Student platform supports over 3 million student records across more than 190 schools, helping institutions streamline the entire student lifecycle. The platform integrates with other Workday tools to provide real-time insights into various academic and administrative areas. Institutions such as the University of Arkansas System, Wake Forest University, and Carthage College have adopted the system to improve student experiences and operational efficiency. Workday attributes this recognition to its commitment to innovation and the growing global adoption of its solutions.

Workday's 2025 Spring Release introduces over 350 updates, focusing on AI-driven improvements in HR, finance, and workforce management. Key updates include AI-powered talent rediscovery, personalized onboarding, and intelligent job recommendations.

For workforce management, offline time tracking and AI-assisted time entry simplify processes. Finance updates include automated service quoting and AI-enhanced accounts payable processing. The user experience is improved with smarter search, centralized help, and an admin hub.

Workday emphasizes customer-driven innovation, aiming to enhance efficiency and agility for over 11,000 organizations, including more than 60% of the Fortune 500.

Workday, Inc. has announced that its 2025 annual stockholder meeting will be held virtually on June 4, 2025, at 9:00 a.m. PT / 12:00 p.m. ET. The record date for the meeting is April 7, 2025, and only stockholders of record on that date will be eligible to vote.

A live webcast of the meeting will be available on Workday’s Investor Relations site, with a replay accessible for at least 90 days.

Workday is an AI-driven platform helping organizations manage their people and financial assets, serving over 11,000 businesses, including more than 60% of the Fortune 500. For more information, visit workday.com.

Workday released "The Global State of Skills" report, highlighting growing concerns among business leaders about future talent shortages. More than half of leaders worry about having the necessary workforce skills, while only 32% feel confident their organizations are prepared for long-term success. Traditional hiring methods based on job titles and degrees are proving inadequate, leading to a shift toward skills-based talent strategies that prioritize individual capabilities.

The report finds that 81% of leaders believe skills-based approaches drive productivity, innovation, and agility. More than half of organizations have already started transitioning to this model, with 23% planning to begin this year. Beyond business benefits, skills-based hiring is seen as a way to improve job access, workforce equity, and reduce unemployment.

AI is playing a crucial role in this transition by automating tasks, enhancing decision-making, personalizing learning programs, and predicting future skills needs. However, while AI-driven technical skills are in demand, human skills such as communication, teamwork, resilience, and creativity remain essential.

Despite the momentum, challenges include the time needed to reskill employees, resistance to change, and a lack of infrastructure to support skills-based talent management. Leaders emphasize that technology alone isn't enough—effective change management and clear communication are needed for adoption.

Workday believes organizations that embrace a skills-first mindset will be better positioned for success, leveraging AI while ensuring human talent remains a key driver of business growth. The study was based on responses from 2,300 business leaders across North America, EMEA, and Asia-Pacific.

Workday reported strong financial results for the fourth quarter and full year of fiscal 2025, demonstrating consistent revenue growth and expanding its subscription business. The company’s total revenue for Q4 2025 reached $2.211 billion, a 15.0% increase year-over-year, with subscription revenue growing by 15.9% to $2.040 billion. For the full fiscal year, total revenue increased by 16.4% to $8.446 billion, while subscription revenue climbed 16.9% to $7.718 billion.

Workday’s operating income for the quarter was $75 million, or 3.4% of revenue, compared to $79 million in the prior year, with results impacted by $75 million in restructuring expenses. However, non-GAAP operating income was $584 million, or 26.4% of revenue, up from $462 million in the previous year. Similarly, diluted net income per share was $0.35 for Q4 2025, compared to $4.42 in the prior year, which had benefited from a $1.1 billion tax allowance release. On a non-GAAP basis, diluted net income per share was $1.92, up from $1.57.

Workday's backlog for 12-month subscription revenue reached $7.63 billion, a 15.2% increase, while total subscription revenue backlog rose 19.7% to $25.06 billion. The company also improved cash flow, generating $2.461 billion in operating cash flow, a 14.5% increase year-over-year, with free cash flow of $2.192 billion.

During the year, Workday repurchased 2.9 million shares for $700 million, and as of January 31, 2025, it held $8.02 billion in cash, cash equivalents, and marketable securities.

Looking ahead, Workday projects fiscal 2026 subscription revenue of $8.8 billion, reflecting 14% growth, with a non-GAAP operating margin of approximately 28%. For the first quarter of fiscal 2026, subscription revenue is expected to reach $2.05 billion, with the same non-GAAP operating margin target.

Key business highlights include the announcement of the Workday Agent System of Record for managing AI agents, expansion into Australia and New Zealand with Workday Student, and securing new customers such as First-Citizens Bank & Trust, St. Louis County, and UnityPoint Health. Workday also strengthened partnerships with Randstad, TechWolf, and MetLife.

The company remains focused on investing in AI-driven solutions for HR and finance while optimizing costs for sustained growth. Workday will host an earnings call to discuss these results in detail.