WDAY

• The company's most significant currency exposures as of July 31, 2026 were the euro, British pound, Canadian dollar, and Australian dollar.
• The company uses foreign currency derivative hedging transactions to mitigate risks from changes in foreign currency exchange rates.
• Cash, cash equivalents, and marketable securities totaled $3.4 billion as of July 31, 2026, down from $5.4 billion as of January 31, 2026.
• A hypothetical 100 basis point change in interest rates would have changed the investment portfolio's market value by approximately $43 million as of July 31, 2026, versus approximately $59 million as of January 31, 2026.
• The Senior Notes have fixed annual interest rates, so the company has no economic interest rate exposure on those obligations, though their fair values are sensitive to rate changes.
• Borrowings under the 2022 Credit Agreement carry variable interest rates tied to a base rate or SOFR, exposing the company to changes in underlying index rates.

We are regularly involved with claims, suits, purported class or representative actions, and may be involved in regulatory and government investigations and other proceedings, involving competition, intellectual property, data security and privacy, bankruptcy, tax and related compliance, labor and employment, commercial disputes, and other matters. Such claims, suits, actions, regulatory and government investigations, and other proceedings can impose a significant burden on management and employees, could prevent us from offering one or more of our applications, services, or features to others, could require us to change our technology or business practices, or could result in monetary damages, fines, civil or criminal penalties, reputational harm, or other adverse consequences. These claims, suits, actions, regulatory and government investigations, and other proceedings may include speculative, substantial, or indeterminate monetary amounts. We record a liability when we believe that it is probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both the likelihood of there being a liability and the estimated amount of a liability related to such matters. With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible liability will not, either individually or in aggregate, have a material adverse effect on our business, financial condition, operating results, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. 40 Table of Contents

• AI is a central risk theme: competition from generic LLMs and agentic AI, EU AI Act compliance, and a pending discrimination lawsuit tied to AI products are all called out.
• Infrastructure and service reliability remain material, with a July 2025 reporting issue and prior co-location data center outages cited as examples.
• Cybersecurity risks are elevated by supply chain attacks, AI-enabled threats, and inherited vulnerabilities from acquisitions and third-party integrations.
• Growth depends on new markets and offerings such as medium-enterprise, U.S. federal government, agentic AI, and Workday Data Cloud, where monetization and adoption remain uncertain.
• Leadership transition risk is newly emphasized: Aneel Bhusri became CEO in February 2026, replacing Carl Eschenbach, and key-talent retention required extra equity grants in May 2026.
• Long sales cycles, especially in government, higher education, and healthcare, are lengthening and delaying revenue recognition under the subscription model.