GATINEAU, QC, May 21, 2026 /CNW/ – The CRTC is taking important steps to implement the modernized Broadcasting Act (the Act) by updating how Canadian and Indigenous content is supported and made available.

The Act requires the CRTC to modernize Canada’s broadcasting framework and ensure that online broadcasters make meaningful contributions to Canadian and Indigenous content. In 2024, the CRTC took a first step by requiring online broadcasters to make a base contribution of 5% of their Canadian revenues to support the broadcasting system.

Building on that work, the CRTC held broad public consultations on the creation of Canadian content in the audio-visual sector and market dynamics and the sustainability of Canada’s broadcasting system. During these consultations, the CRTC received more than 600 submissions and held two public hearings. At those hearings, the CRTC heard a wide range of perspectives from nearly 150 groups, including creators, traditional and online broadcasters, production groups, public interest organizations, Indigenous peoples, official language minority communities and other participants.

Following the consultations, the CRTC issued a first decision to modernize the definition of Canadian audio-visual content. Today’s decisions build on that work.

First, the CRTC is setting new rules to ensure that traditional and online broadcasters contribute to the creation of Canadian and Indigenous content in an equitable way that reflects their size and business models.

Under the new rules, broadcasters with annual Canadian broadcasting revenues above $25 million will make meaningful contributions to the broadcasting system. No broadcasters below that threshold will be required to spend on Canadian content, which will reduce the overall regulatory burden in the system.

Contributions will be recalibrated so that traditional broadcasters will contribute 25% of their annual revenues to support Canadian and Indigenous content and benefit from greater flexibility in how they meet this requirement. For major broadcasters, this will provide relief as their current requirements range from 30% to 45%. Online broadcasters will contribute 15%, which includes their existing 5% base contribution.

The total contributions are expected to stabilize the funding at more than $2 billion in support of Canadian and Indigenous content, such as French-language content and news. This also includes the creation of a new fund to support services of exceptional importance. These measures will help ensure that Canadian stories continue to be told and made available to audiences across the country.

Secondly, the CRTC is setting clear expectations for the discoverability of Canadian and Indigenous content so that it is made available and visible to audiences. This will make it easier for people to find this content on the platforms they use, while giving broadcasters flexibility in how they meet the new expectations.

With these decisions, the CRTC has completed most of the foundational work required to implement the modernized Act in the audio-visual sector. To find out more, check out the CRTC’s regulatory plan.

Quote

“Today’s decisions are about building a stronger broadcasting system. We are taking action to ensure stable funding for Canadian and Indigenous content, and to help make it more discoverable.”

– Vicky Eatrides, Chairperson and Chief Executive Officer, CRTC

Quick facts

The CRTC is an independent quasi-judicial tribunal that regulates the Canadian communications sector in the public interest. The CRTC holds public consultations on telecommunications and broadcasting matters and makes decisions based on the public record.The decision on contribution requirements builds on the base contributions decision and addresses the remaining issues from the consultation on the creation of Canadian content in the audio-visual sector.

Associated links

Broadcasting Regulatory Policy CRTC 2026-96: The Path Forward – Supporting the creation and distribution of Canadian programming in the audio-visual sector – Part 2 – A modernized framework for Canadian programming expendituresBroadcasting Regulatory Policy CRTC 2026-95: The Path Forward – Working towards a sustainable Canadian broadcasting system – Part 1 – Discoverability of Canadian and Indigenous content and services, and support for services of exceptional importanceBroadcasting Regulatory Policy CRTC 2025-299: The Path Forward – Defining “Canadian program” and supporting the creation and distribution of Canadian programming in the audio-visual sector – Part 1 – Certification framework for Canadian programs, artificial intelligence, data collection and publication, and reporting requirementsBroadcasting Notice of Consultation CRTC 2025-2: The Path Forward – Working towards a sustainable Canadian broadcasting systemBroadcasting Notice of Consultation CRTC 2024-288: The Path Forward – Defining “Canadian program” and supporting the creation and distribution of Canadian programming in the audio-visual sectorConsultation on Canadian content for TV and online streaming servicesBroadcasting Regulatory Policy CRTC 2024-121: The Path Forward – Supporting Canadian and Indigenous content through base contributionsCRTC requires online streaming services to contribute to Canada’s broadcasting systemModernization of Canada’s broadcasting framework

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SOURCE Canadian Radio-television and Telecommunications Commission (CRTC)

The festival will feature leading voices in climate capital, policy, and innovation — seven thematic tracks and over $1.5 million in prizes

MONTREAL, May. 21, 2026 /CNW/ – At a moment when scaling proven climate technologies has become the central challenge of the transition the Climate Solutions Prize (CSP) Festival has announced the 10 finalists for the 2026 Climate Tech Trailblazer Prize, selected from the strongest applicant pool in the Prize’s history. The finalists will pitch live to a jury of investors and industry leaders in a Dragons’ Den-style event on the final day of the Festival, with the winner revealed at the closing ceremony. The 2026 edition of the Festival will take place at Marché Bonsecours in Montréal on June 8–9. With seven thematic tracks — three of which are new — more than $1.5 million in prizes, and 2,000 expected participants, the 2026 edition will be the largest to date.

Confirmed speakers include David Suzuki, renowned Canadian scientist, broadcaster and founder of the David Suzuki Foundation; Jean Charest, former Deputy Prime Minister of Canada and former Premier of Québec; Henry Stern, California State Senator, former environmental attorney and longtime clean energy advocate; Sage Lenier, climate educator, founder of Sustainable & Just Future and a 2023 TIME Next Generation Leader; and Bruce Friedrich, founder and CEO of the Good Food Institute and a TED Fellow. They will take the stage alongside entrepreneurs, researchers, innovators and public sector actors from 20+ countries and 5 continents.

“The research and solutions exist, and there is a growing base of climate-focused investors and the talent to lead. The challenge is building the connective infrastructure: the mechanisms and platforms that help innovations survive the journey from lab to market. That is what the CSP is designed to provide,” says Galith Levy, CEO and co-founder of the Climate Solutions Prize.

2026 Climate Tech Trailblazer Prize: The Top 10 Finalists

The 2026 Climate Tech Trailblazer Prize finalists represent BC, Ontario, Nova Scotia and Quebec and span sectors including Built Environment, AgTech, Water, Resource Technology (green chemistry, critical minerals, industrial decarbonization), Energy and Power, Nature and Biodiversity (restoration), and Changemaker — each recognized for the strength and impact of their climate solutions.

Local Energy (Daniel Bastien) — Helps factories, industrial parks and cities reduce emissions by capturing and redistributing excess energy that would otherwise be wasted.Tydra Biomaterial Labs Ltd (Jaiya Varshney) — Transforms food waste into chitin through microbial recycling, creating a powerful material for water remediation, wound healing and soil health.Cellulotech Inc (Romain Metivet) — A fast, low-cost green chemistry process that makes paper water- and grease-resistant while keeping it recyclable, offering a plastic-free packaging alternative.Cardinal Volta (Nan Ge) — Captures wasted industrial heat and converts it into reusable energy, helping factories reduce costs and emissions.Planetary (Michael Kelland) — Removes carbon by safely restoring ocean alkalinity, enabling seawater to absorb and permanently store more CO₂ while reducing ocean acidification.Alter Biota Inc (Mark Masotti) — Uses biochar from wood waste and computer vision aggregate analysis to help concrete producers make stronger, lower-carbon concrete.TerraFixing (Samantha Usas) — Stores low-cost renewable electricity as high-temperature heat, replacing fossil fuels in heat-intensive industrial production.Tersa Earth Innovations Inc (Earl Oliver) — Uses microbe-powered water treatment to clean mine-impacted water, neutralize acidity and recover valuable metals.Tree Track Intelligence (Amir Soleimani) — Combines engineered Seedpods and precision UAV deployment to restore wildfire-damaged landscapes with stronger seedling survival rates.Neptune Nanotechnologies (Aaron Guan) — Turns discarded crab and lobster shells into a bio-based fire-safety additive for plastics, reducing reliance on toxic chemicals.

Three more prizes recognizing climate leadership

In addition to the Climate Tech Trailblazer Prize, the Festival will present three additional awards recognizing innovations with strong environmental and economic impact:

The 2026 Breakthrough Research Prize, recognizing leading climate research from Canadian universities and non-profit institutions, with awards directed to the host institution to support continued innovation.The 2026 Climate Startup Equity Prize Powered by Cycle Momentum, recognizing early-stage Quebec-based climate startups with strong commercial and environmental impact.The 2026 Student Entrepreneur Innovation Prize, recognizing the next generation of climate solution builders.

The 2026 edition drew a record level of interest, with a 30% increase in applications over the previous year. The full list of finalists for all prizes is available in the attached fact sheet and at www.climatesolutionsprize.com.

Bridging the gap between climate innovation and deployment

Since its founding in 2020, the CSP has become an international platform that has supported more than 1,400 innovators across 20 countries, awarded over $12 million in prizes, and helped generate more than $111 million in follow-on funding. The 2026 edition marks a new phase of expansion. Three new thematic tracks — Nature & Biotechnologies, Resource Technologies and Energy & Power — join four returning tracks to bring the total to seven.

“I’ve been to hundreds of sustainability conferences over the course of my career, and most times cannot wait to get home. The Climate Solutions Prize Festival is different — one of the most incredible experiences of my entire career. Being surrounded by leaders from across sectors, all sharing ideas to reduce our carbon impact, made it one of the most inspiring and impactful few days I’ve ever had in sustainability.” — Rob Johnson, Senior Vice President, Sustainability, Seattle Kraken & Climate Pledge Arena

“Events like the Climate Solutions Prize Festival are wonderful opportunities to highlight concrete solutions and bring initiatives forward. In this province, there are extraordinary initiatives and extraordinary creativity to support. We are proud to be part of it.” — Grégoire Baillargeon, President, BMO Financial Group, Québec

Click here to discover the full program and register.

To register as media, please contact Emmy Vande Rosieren at emmyvdr@copticom.ca or (514) 603-3209.

About the Climate Solutions Prize

Founded in 2020, the Climate Solutions Prize acts as a catalyst for the ecological transition by accelerating innovation, investment and collaboration. Through its flagship annual event, the Climate Solutions Prize Festival, the initiative brings together researchers, entrepreneurs, investors, public sector actors and strategic partners to foster the emergence, funding and global reach of innovative environmental technologies.

FACT SHEET

2026 Climate Solutions Prize Festival : Full List of Finalists

The 2026 Climate Solutions Prize Festival will recognize finalists across four prize categories. Below are the complete lists of finalists.

2026 Breakthrough Research Prize: The Top 10 Finalists

The Breakthrough Research Prize recognizes leading climate research from Canadian universities and non-profit institutions, with awards directed to the host institution to support continued innovation.

University of British Columbia — Armand Bonakdarpour (Narval Energy): A safe, low-cost sodium and iron battery for long-duration energy storage that performs in extreme temperatures and can replace diesel power in remote communities.University of Toronto and Western University, in partnership with Xatoms Inc — Diana Virgovicova: AI-discovered, light-activated materials that break down industrial water pollution without chemical additives or secondary waste.National Research Council of Canada — Parisa Karimi (Hyperion): A circular carbon recycling system that captures CO₂ from cement production and converts it into useful low-carbon minerals.RXN Hub, in partnership with CERT Systems — Steacy Coombs: Uses clean electricity to convert CO₂ and water into ethylene, replacing fossil-based production for plastics, fuels and everyday materials.RXN Hub, in partnership with Secant Fuel — Sandra Walker [confirm name]: Turns CO₂ and water into clean syngas, creating a scalable pathway to lower-carbon fuels for shipping and aviation.Biopterre — Rodrigue Dasani [confirm spelling]: Transforms stored mine-site soils into biologically active carbon sinks, turning land restoration into a measurable climate solution.Université Laval — MicroMea — Juliette Gagnon: Converts businesses’ organic waste into onsite biogas through compact, bacteria-powered containers, reducing landfill use and emissions.University of Waterloo, in partnership with CarbonLume Inc — Abdelaziz Gouda: Uses modular, light-driven technology to convert methane into battery-grade carbon nanotubes and clean hydrogen.Simon Fraser University — Majid Bahrami [confirm spelling]: A waste-heat-to-cooling platform that uses heat from buildings and data centres to produce affordable, low-carbon cooling.Concordia University — Ashlee Howarth (Anodyne Chemistries): A reusable sorbent-based process that turns captured CO₂ into carbon-negative chemicals with lower energy and emissions.

2026 Climate Tech Trailblazer Prize: The Top 10 Finalists

The 2026 Climate Tech Trailblazer Prize saw a 30% increase in applications over last year. This year’s finalists represent [X] countries and span sectors from [X to Y]. The finalists will pitch live to a jury of investors and industry leaders in a Dragons’ Den-style event on June 9, with the winner revealed at the closing ceremony.

Local Energy (Daniel Bastien) — Helps factories, industrial parks and cities reduce emissions by capturing and redistributing excess energy that would otherwise be wasted.Tydra Biomaterial Labs Ltd (Jaiya Varshney) — Transforms food waste into chitin through microbial recycling, creating a powerful material for water remediation, wound healing and soil health.Cellulotech Inc (Romain Metivet) — A fast, low-cost green chemistry process that makes paper water- and grease-resistant while keeping it recyclable, offering a plastic-free packaging alternative.Cardinal Volta (Nan Ge) — Captures wasted industrial heat and converts it into reusable energy, helping factories reduce costs and emissions.Planetary (Michael Kelland) — Removes carbon by safely restoring ocean alkalinity, enabling seawater to absorb and permanently store more CO₂ while reducing ocean acidification.Alter Biota Inc (Mark Masotti) — Uses biochar from wood waste and computer vision aggregate analysis to help concrete producers make stronger, lower-carbon concrete.TerraFixing (Samantha Usas) — Stores low-cost renewable electricity as high-temperature heat, replacing fossil fuels in heat-intensive industrial production.Tersa Earth Innovations Inc (Earl Oliver) — Uses microbe-powered water treatment to clean mine-impacted water, neutralize acidity and recover valuable metals.Tree Track Intelligence (Amir Soleimani) — Combines engineered Seedpods and precision UAV deployment to restore wildfire-damaged landscapes with stronger seedling survival rates.Neptune Nanotechnologies (Aaron Guan) — Turns discarded crab and lobster shells into a bio-based fire-safety additive for plastics, reducing reliance on toxic chemicals.

2026 Climate Startup Equity Prize Powered by Cycle Momentum: The Top 10 Finalists

The Climate Startup Equity Prize recognizes early-stage Quebec-based climate startups with strong commercial and environmental impact.

AgFlo — Brings precision to feed inventory, reducing costs and emissions at scale.Partake (Partage Club Inc.) — Live more than you own.PakVille — Reinventing construction with high-performance building panels made from recycled materials.PlasmaGear — PFAS is being phased out, and PlasmaGear is ready to replace it.Local Energy — Uses AI to turn complex thermal and industrial energy systems into flexible energy assets.BeNat — Waste less. Build more.Carbon Saver — Embeds carbon intelligence directly into existing building design tools, making emissions reduction automatic, fast and cost-effective.Altiro — Patented iron fuel technology that stores clean power and delivers it anywhere in the world.Polaris Aerospace — Redefining access to space.Secant Fuel — Turns captured CO₂ and water into low-carbon syngas, creating a simpler, lower-cost pathway to cleaner fuels and chemicals.

For more information: www.climatesolutionsprize.com

SOURCE Climate Solutions Prize

Fiscal First Quarter Total Revenues of $2.542 Billion, Up 13.5% Year-Over-Year

Subscription Revenues of $2.354 Billion, Up 14.3% Year-Over-Year

PLEASANTON, Calif., May 21, 2026 /PRNewswire/ — Workday, Inc. (NASDAQ: WDAY), the enterprise AI platform for HR, finance, and IT, today announced results for the fiscal 2027 first quarter ended April 30, 2026.

Fiscal 2027 First Quarter Results

Total revenues were $2.542 billion, an increase of 13.5% from the first quarter of fiscal 2026. Subscription revenues were $2.354 billion, an increase of 14.3% from the same period last year.Operating income was $338 million, or 13.3% of revenues, compared to an operating income of $39 million, or 1.8% of revenues, in the same period last year. Operating income in the first quarter of fiscal 2026 was impacted by restructuring expenses of $166 million. Non-GAAP operating income for the first quarter was $809 million, or 31.8% of revenues, compared to a non-GAAP operating income of $677 million, or 30.2% of revenues, in the same period last year.1Diluted net income per share was $0.87, compared to diluted net income per share of $0.25 in the same period last year. Diluted net income per share in the first quarter of fiscal 2026 was impacted by restructuring expenses of $166 million. Non-GAAP diluted net income per share was $2.66, compared to non-GAAP diluted net income per share of $2.23 in the same period last year.112-month subscription revenue backlog was $8.806 billion, up 15.5% from the same period last year. Total subscription revenue backlog was $27.294 billion, increasing 10.9% year-over-year.Operating cash flows were $696 million compared to $457 million in the same period last year. Free cash flows were $616 million compared to $421 million in the same period last year.1Workday repurchased approximately 12.0 million shares of Class A common stock for $1.6 billion as part of its share repurchase programs.Cash, cash equivalents, and marketable securities were $4.353 billion as of April 30, 2026.

Comments on the News

“We had a great Q1, and it makes one thing clear: Workday is ready for this AI moment. Our core business is strong, our AI strategy is working, and we’re moving with the speed and focus required to lead,” said Aneel Bhusri, co-founder, CEO, and chair, Workday. “I am very excited about Workday’s position and our path ahead. We have the platform, the trust, and the innovation to lead this next chapter, just as we did when we founded the company.”

“Our first quarter results demonstrate ongoing customer adoption across our platform, as enterprises around the globe turn to Workday to manage and empower their most important assets,” said Zane Rowe, CFO, Workday. “We are reiterating our fiscal 2027 subscription revenue outlook of $9.925 billion to $9.950 billion, while increasing our fiscal 2027 non-GAAP operating margin guidance to 30.5%. Our focus remains on executing on our agentic AI roadmap while driving operational efficiencies as we scale.”

Recent Business Highlights

Workday welcomed new customers including ACHM Hotels by Marriott, Australian Gas Infrastructure Group, Del Monte Fresh Produce Company, Smiths Group, and State of Delaware, and expanded existing relationships with Bank OZK, GE Vernova, and Queensland University of Technology.The number of customers using Workday’s organically developed agents has more than doubled quarter-over-quarter, with over 4,000 customers using at least one of these agents, as of today, to support their business processes.In Q1, Workday supported 14 million hiring processes with its Recruiting Agent, up 44% year-over-year.The Workday customer community now represents more than 80 million users under contract.Sana from Workday – superintelligence for work – is now available to customers worldwide. Workday also introduced Sana for IT Service Management (ITSM) to handle common service tasks from HR, finance, and IT, and a new Travel Agent to bring travel and expenses together in one seamless experience.The Workday Agent System of Record is now generally available, giving customers visibility and control over all of their AI agents.Workday introduced new innovations to support the public sector and veteran workforce, including the Personnel Action Request Agent to modernize federal HR transactions and Military Skills Mapper to help organizations more effectively identify and hire military veteran talent.Workday expanded into Vietnam, its sixth market in the ASEAN region, joining Singapore, Malaysia, Thailand, Indonesia, and the Philippines.Workday announced EU-based data residency in Frankfurt and multilingual support for Workday Contract Lifecycle Management, providing organizations with a contract management solution that meets EU data residency requirements.Workday expanded its partnership with Microsoft; announced new partner offerings through Workday Recognition provided by Achievers and the Insperity HRScale™ solution; and welcomed Morgan Stanley at Work and PerkSpot to the Workday Wellness program.Workday was the only vendor to be named a Customers’ Choice in the 2026 Gartner Voice of the Customer for Cloud ERP for Service-Centric Enterprises1 for two consecutive years.Workday was named a Leader in the Gartner® Magic Quadrant™ for Student Information Systems.2Workday was named one of the 2026 World’s Most Ethical Companies® by Ethisphere for the sixth consecutive year.KLAS Research recognized Workday as the 2026 Best in KLAS winner for ERP for large organizations.

Financial Outlook

Workday is providing guidance for the fiscal 2027 second quarter ending July 31, 2026 as follows:

Subscription revenues of $2.455 billion, representing growth of 13%Non-GAAP operating margin of 30.0%1

Workday is updating guidance for the fiscal 2027 full year ending January 31, 2027 as follows:

Subscription revenues of $9.925 billion to $9.950 billion, representing growth of 12% to 13%Non-GAAP operating margin of 30.5%1

Earnings Call Details

Workday plans to host a conference call today to review its fiscal 2027 first quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.

Workday uses its blog.workday.com website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Workday 

Workday operates at the heart of the enterprise – HR, finance, and IT – where the margin for error is effectively zero. By tightly coupling AI with the context, guardrails, and trusted processes that run the business, Workday goes beyond AI that assists with work to agents that are capable of driving measurable outcomes. More than 11,500 organizations worldwide, including more than 65% of the Fortune 500, trust Workday to deliver. For more information about Workday, visit workday.com.

© 2026 Workday, Inc. All rights reserved. Workday and the Workday logo are trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Workday’s second quarter and full year fiscal 2027 subscription revenues and non-GAAP operating margin, momentum, growth, and innovation. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to: (i) breaches in our security measures or those of our third-party providers, unauthorized access to our customers’ or other users’ personal data, or disruptions in our data center or computing infrastructure operations; (ii) service outages, delays in the deployment of our applications, and the failure of our applications to perform properly; (iii) competitive factors, including pricing pressures, industry consolidation, entry of new competitors and new applications, advancements in technology, and marketing initiatives by our competitors; (iv) privacy concerns and evolving domestic or foreign laws and regulations; (v) any loss of key employees or the inability to attract, train, and retain highly skilled employees; (vi) our reliance on our network of partners to drive additional growth of our revenues; (vii) the regulatory, economic, and political risks associated with our domestic and international operations; (viii) our ability to realize the expected business or financial benefits of any acquisitions of or investments in companies; (ix) adoption of our applications and services by customers and individuals, including any new features, enhancements, and modifications, as well as our customers’ and users’ satisfaction with the deployment, training, and support services they receive; (x) the regulatory risks related to new and evolving technologies such as AI and our ability to realize a return on our development efforts; (xi) delays or reductions in information technology spending; (xii) adverse litigation results; (xiii) changes in sales, which may not be immediately reflected in our results due to our subscription model; and (xiv) the impact of continuing global economic and geopolitical volatility and conflicts on our business, as well as on our customers, prospects, partners, and service providers. Further information on these and additional risks that could affect Workday’s results is included in our filings with the Securities and Exchange Commission (“SEC”), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday’s discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.

About Non-GAAP Financial Measures

To provide investors and others with additional information regarding Workday’s results, the following non-GAAP financial measures are disclosed: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and free cash flows. Workday has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Non-GAAP operating income and non-GAAP operating margin differ from GAAP in that they exclude share-based compensation expense, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, acquisition-related costs, and restructuring costs. Non-GAAP net income and non-GAAP diluted net income per share differ from GAAP in that they exclude share-based compensation expense, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, acquisition-related costs, restructuring costs, gains and losses on strategic investments, and income tax effects. Free cash flows differ from GAAP cash flows from operating activities in that it treats capital expenditures as a reduction to cash flows.

Workday’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Workday’s financial performance. Management believes these non-GAAP financial measures reflect Workday’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in Workday’s business. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Workday’s operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

Management believes excluding the following items from the GAAP Condensed Consolidated Statements of Operations is useful to investors and others in assessing Workday’s operating performance due to the following factors:

Share-based compensation expense. Share-based compensation primarily consists of non-cash expenses for employee restricted stock units and our employee stock purchase plan. Although share-based compensation is an important aspect of the compensation of our employees and executives, this expense is determined using a number of factors, including our stock price, volatility, and forfeiture rates, that are beyond our control and generally unrelated to operational decisions and performance in any particular period. Further, share-based compensation expense is not reflective of the value ultimately received by the grant recipients.Employer payroll tax-related items on employee stock transactions. We exclude the employer payroll tax-related items on employee stock transactions in order to show the full effect that excluding share-based compensation expense has on our operating results. Similar to share-based compensation expense, this tax expense is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.Amortization of acquisition-related intangible assets. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of the related amortization can vary significantly and are unique to each acquisition and thus we do not believe this activity is reflective of our ongoing operations. Although we exclude the amortization of acquisition-related intangible assets from these non-GAAP financial measures, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.Acquisition-related costs. Acquisition-related costs include direct transaction costs, such as due diligence and advisory fees, and certain compensation and integration-related expenses. We exclude the effects of acquisition-related costs as we believe these transaction-specific expenses are inconsistent in amount and frequency and do not correlate to the operation of our business.Restructuring costs. Restructuring costs are associated with a formal restructuring plan and are primarily related to workforce reductions, the closure of facilities, and other exit and disposal activities. We exclude these expenses because they are not reflective of ongoing business and operating results.Gains and losses on strategic investments. Our strategic investments include investments in early stage companies that are valuable to Workday customers and complementary to Workday products. Gains and losses on strategic investments may result from observable price adjustments and impairment charges on non-marketable equity securities, ongoing mark-to-market adjustments on marketable equity securities, and the sale of equity investments. We do not rely on these securities to fund our ongoing operations and therefore we do not consider the gains and losses on these strategic investments to be reflective of our ongoing operations.Income tax effects. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a three year financial projection that excludes the direct impact of the items excluded from GAAP income in calculating our non-GAAP income. The projected rate considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. For fiscal 2027 and 2026, we determined the projected non-GAAP tax rate to be 19%, which reflects currently available information, as well as other factors and assumptions. We will periodically re-evaluate this tax rate, as necessary, for significant events, relevant tax law changes, material changes in the forecasted geographic earnings mix, and any significant acquisitions.

Additionally, with regards to free cash flows, Workday’s management believes that reducing cash provided by operating activities by capital expenditures is meaningful to investors and others because it provides an enhanced view of cash flow generation from the ongoing operations of our business, and it balances operating results, cash management, and capital efficiency.

The use of these non-GAAP measures have certain limitations as they do not reflect all items of expense or cash that affect Workday’s operations. Workday compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review Workday’s financial information in its entirety and not rely on a single financial measure.

Gartner Disclaimer

Gartner®, Magic Quadrant™, and Peer Insights™ are trademarks of Gartner, Inc. and its affiliates. Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release), and the opinions expressed in the Gartner Content are subject to change without notice.

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SOURCE Workday, Inc.