Workday Q4 FY2026: AI Products Generate $100M+ New ACV and $400M+ ARR — But Weak FY2027 Outlook Catalyzes Broader SaaS Selloff

Futurum Group·medium signal

Workday's Q4 FY2026 showed total revenue of $2.5B (+14.5% YoY) with AI involved in roughly half of customer-base transactions and $100M+ in new ACV from AI products growing 100%+ YoY, bringing AI ARR past $400M. However, FY2027 subscription guidance of $9.925-9.95B (12-13% growth) fell below expectations, triggering a 7-8% drop. This guidance miss became a catalyst for the broader March SaaS selloff and crystallizes the central question for HR/finance SaaS incumbents: can they monetize AI tasks fast enough to offset the seat compression that AI creates?