Workday announced second-quarter revenue of $2.65 billion, a year-over-year increase of nearly 13%, exceeding analysts' expectations of $2.64 billion. Subscription revenue grew by 13.9% to $2.471 billion. AI products drove over $100 million in new Annual Contract Value (ACV), accounting for more than 25% of total new ACV, with Annual Recurring Revenue (ARR) approaching $600 million. Non-GAAP operating margin expanded to 31.1%, an increase of 212 basis points year-over-year. However, the company projects subscription revenue growth of approximately 11% for fiscal year 2028, lower than the current growth rate of 13% to 14%. Management stated that current AI adoption is more substitutional than incremental.