Good morning. Thank you for joining us at day two at the Morgan Stanley TMT Conference. My name is Keith Weiss. I run the U.S. Equity Software Research Group here at Morgan Stanley. I'm very pleased to have with us, kicking off the conference, for me at least, Carl Eschenbach, CEO of Workday. Carl, thank you for joining us again.
Keith, thank you for having us. It's always great to come to your conference.
Excellent.
It's always fun being bright and early in the morning, too, kicking off your conference.
Exactly.
While we're still fresh.
Feisty.
Before we get started, for important disclosures, please see the Morgan Stanley Research Disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley sales representative. All right. With that out of the way, so Carl, we just came out of a solid quarter for Workday to end of your fiscal year. You talked about record kind of new FINS customers for the quarter and for the year, good traction with some of your newer AI solutions. Can you talk to us about Q4 and the year in total? What's been working for Workday over that period?
Yeah, thanks, Keith. I would say, you know, I described FY 2025 as a really solid year with a strong finish in Q4. As you know, Q4 results, we talked about them just last two weeks ago.
I think the results were strong, both on subscription revenue, operating margin, and cRPO was probably above all of our guide. And that's because I would describe the quarter as extremely balanced across all of the areas we've been investing in over the last couple of years, starting with AI. I'm guessing, Keith, we'll spend more time on AI, but we had a really strong quarter in AI, specifically in selling back into our install base. More than 30% of our sales back to our customer base included an AI SKU for the second consecutive quarter.
And the size and scope of the overall AI business doubled from quarter to quarter, from Q3 to Q4, Keith, specifically around some of our agents, like Recruiter Agent or Extend Pro. We did have a record quarter in financials, so the number of financial units or new customers we landed was a record quarter.
But more importantly than just landing new financials, our full suite or full platform sales was quite strong. More than 30%, Keith, of our new sales in the quarter for net new customers included full suite, meaning both HR and finance. And in our industries, our focus industries like state and local government, higher ed, and, you know, we saw more than in healthcare, we had saw more than 50% of all their sales, actually including full suite. And I'd say throughout FY 2025, as you know, we've leaned heavily into the international market because it represents, Keith, more than 50% of our addressable market. And in FY 2024, we had a really good year. Last year was a tougher year. We've called that out multiple times. I don't think that's a Workday statement.
I think in general, especially in Europe, the macro played a big impact on people's performance throughout the year. But in Q4, we were really pleased with our performance in Europe, specifically in the two biggest markets, the U.K. and Germany. And in Germany, two of the largest HCM competitive deals that we've seen over there, probably in the last 12 months, we were able to win in our biggest competitor's backyard. So I was really pleased with that performance as well. And last quarter, we also announced a new hire. We brought in a new president of product and technology, and that's on the back of just 90 days earlier, bringing in a new president to run, you know, go to market to replace Doug Robinson, who's retiring. So I think, you know, we continue to be a magnet for great talent.
We can recruit incredible people, both at the executive level all the way down to the individual contributor because of some of the momentum we have as a company. So it was a really balanced quarter, and it set us up for good momentum as we went to FY 2026, and hopefully that was reflected in the guide that we provided, which was an update to the preliminary guide that Zane and I gave back in November after our Q3 results. We always give preliminary guidance for the next year. And we reiterated our subscription revenue growth, and we expanded our operating margins by 50 basis points to 28% for FY 2026. So I think we're set up for a really good year.
Yeah, as we were talking in the back, there's a lot of unknown out there in the market, but I think a lot of the things we've been working on are coming together nicely and give us some momentum as we go into the new year.
Got it. A ton of stuff to unpack there. I want to start off with a kind of a broader perspective. This is your two years plus in the role. When you came on board into Workday, you took a hard view at the company. And I think the conclusion that you came out with is that there was investment needed in go-to-market. You expanded out your international distribution, expanded out what you're doing with partners, looked at doing basically direct FINS sellers as well to add to the mix. Basically, from my perspective, came to the conclusion you guys were under-distributed. Is what we're seeing today the results of that? Like, are those investments yielding now in terms of the partners, the international sales, the new sales leadership? Is that why we're seeing record FINS sales?
I would say yes. Clearly, over the last, you know, couple of years, we have done a sizable transformation as we think about going to market and both capturing new customers and selling back to our base. An example is the partners. You know, I often talk about we don't want to just build a Workday ecosystem. I want to build an economy through our partners around Workday. And I think that investment is clearly paying off for us. We talked about in Q4, for example, Keith, 15% of our new ACV in the quarter came through partners. We now have a partner referral program. You know, if we sat here two years ago, we had zero people in our partner referral program. Now we have over 500 partners bringing us leads and opportunity and generating more than 10% of our new pipeline. So that's paying off.
But it's not just partners, right, bringing us new opportunities and helping us drive growth. It's actually allowing them to now innovate on top of the Workday platform. We have something called Built on Workday, which allows our partners to build applications on top of us and then build them once and distribute them into our customer base. And that has played out very well for our partners. We've announced something called Workday Wellness, which allows benefit partners now to build and integrate deeply into the Workday platform. We've launched something called Global Payroll Connect, where we have more than 22 global payroll providers deeply building and integrating into Workday. So through Workday, you can get access to not just your HCM and financials, but all your payroll information without having to jump out.
We have something called Extend and Extend Pro that allows people to build on top of Workday. The whole partner focus is clearly paying off for us. We're still in the early days of building the partner ecosystem and the Workday economy around it, but there is no doubt it's having impact. On the financials, about two years ago this time, I looked at the market, and while Workday, we were doing okay in selling FINS into the market, I just saw it as a really rich opportunity to double down our efforts. We built a direct sales force that only gets paid and is focused on driving financials into the market. We can see that in the record number of new FINS sales. More importantly, as I said earlier, what it really is doing is driving full platform sales.
And we just see that as great momentum at this point. And those FINS sellers, now we've stopped hiring at the pace and rate we did over the last couple of years. We're focusing on productivity and yield of that sales force. And I think that's going, you know, very well at this point. And then we've also done other things on the go-to-market side. We've gone down market more aggressively into the medium enterprise, which, you know, is a buyer in a community that will buy full suite from us as opposed to just buying HCM or financials. They have a tendency to buy a full suite. And we're doing quite well as we go down into that market. We've aggressively now started to target the U.S. federal government because we think that's a really rich opportunity. There's good news, bad news in that market for us.
On the bad news side, we don't have a big presence in that market. The good news of that is there's such a rich opportunity with a significant portion of both HCM and financials in the federal market being on-premise. So we're leaning heavily into that. And then we talked about the international build-out. So yeah, Keith, I think a lot of the things we've done on the go-to-market side, the transformation, the leadership, if I reflect over the last couple of years, we have a new U.S. federal leader, a new leader in EMEA, a new leader in APAC, a new leader in Japan, a new leader that runs revenue operations, a new leader that runs, you know, our professional services. So I couldn't be more proud of the go-to-market team, how they've embraced this transformation and the impact they're having on the business.
Got it. And then if we think about sort of, or if you think about over the past two years, has there been any kind of significant need for course correction on some of those initial kind of views on where Workday has to go, where you were trying to take Workday over the past two years? Like, one of the things that sort of pops to mind, I feel like we're talking a lot more about monetization of AI today than we were two years ago when you first joined.
Yeah. So, you know, Keith, we, and in this case, I get asked a lot, like, are these initial, you know, growth drivers for the business, as you look at them, are there things you would have pulled back on? And I reflect on that a lot. And I can honestly say at this time, I wouldn't pull back on, you know, focusing on partners, focusing on pushing AI into the market, focusing on internationals, financials, all the things we're doing, I wouldn't pull back on because it's helping us maintain durable growth at scale. That being said, we have moderated some of the things. Like I said, we're not continuing to hire FINS sellers. I think I have enough now. We're focusing on how do we drive productivity of the FINS sellers. The partner ecosystem, we are still building out and capturing more and more partners.
but, you know, right now, I don't think I'd pull back on anything that we've done. What we are doing now is we're much more aggressively leaning into, obviously, our AI strategy, our AI platform, and we are now monetizing it. One of the things I think that we got questioned about, you know, over the last couple of years is we didn't rush to market like a lot of our peers and say, "Hey, we have a GenAI solution, we have a copilot, and we're going to increase our price by 20% or 30%." We said, "No.
There are core things that's built deep into the Workday platform that are AI-related that our customers have the right to get access to through their subscription revenue that they do pay us. At the same time, what we said is when we truly see we have solutions that a customer will pay for because there's a strong ROI correlated with it, we'll start to monetize it. And that's paid off really well for us. I think we got a tremendous amount of goodwill from customers for not rushing to market and just increasing our price because we had a copilot. And now some of our AI solutions are helping us drive and maintain our growth, like our Recruiter Agent, right?
Our Recruiter Agent helps, you know, recruiters, which is one of the biggest costs in HR, you know, get an increase of, you know, 50%-70% productivity gain and it accelerates time to hire by 50%. So that's something that's quantifiable with an agent that people will pay for. So I think the strategy's worked. We have a multi-pronged strategy on how we're going to monetize AI going forward. And I think it's worked out really well for us.
Got it. Definitely want to dig into that. But before we go there, I just want to talk about sort of the environment that we're operating in right now. You guys closed your FY 2025 well, but it feels like there's an increasing weight of uncertainty out there, whether it's tariffs, whether it's consumer confidence, whether it's DOGE. What are you seeing in terms of your customer conversations? How are the customers handling that elevated uncertainty?
Yeah, there's no doubt there's uncertainty out there. Unfortunately, a lot of these things are not in our control. So we're trying to focus on the things we can control, like bring innovation to market, build our strategy around go-to-market, continue to innovate on the product side, and focus deeply on our customers. This year in FY 2026, one of the mandates I've asked the company is to remain customer-obsessed, obsessed with successfully getting our customers to leverage everything they have in their platform. And by doing that, they'll put more and more on top of our platform, including all of our AI solutions. But listen, there is a lot of, we were talking about it in the back, but we just look at the last couple of days, what's going on. As you talk to customers, I think they're trying to better understand what is happening.
I mean, it changes from day to day, Keith, as you know. But yeah, I mean, at this point, we haven't seen any necessarily big pullback. We haven't seen any acceleration. We did have a really strong linearity quarter in Q4. We had a strong December, probably one of our best linearity quarters we've had in a while. And I think people were pleased that the election was over, regardless of which, you know, administration won, but they knew it was over. They wanted to spend the dollars they had at the end of the year, and they were unsure going into this year what their budgets might look like. But there's a lot of uncertainty. We have to work our way through. We have to navigate through it. But, you know, I keep telling our team, you know, let's focus on the things we can control.
And then as it relates to DOGE, right, I look at the last two, you know, letters, you know, government efficiencies. And I will tell you, despite how much money the government spends on technology, when I look at the markets we serve, you know, HCM, ERP, and financials, it's antiquated. The systems at the government are 20-25-year-old systems that are still on-premises. They pay a tremendous amount of maintenance, and it's only going to escalate. So I hope over time that DOGE can potentially become a tailwind for companies like us who are focusing on the federal government. But right now, there is a lot of uncertainty, and I don't know when that's going to tip.
Got it, so is it fair to say that the better performance in Europe, like in Q4, is more so Workday execution improving rather than anything really changing in the underlying macro?
Yeah. I mean, again, we had a strong, our strongest quarter of the year in Q4. I don't think one quarter makes a trend. So as we go into, you know, FY 2026, we expect more of the same, if I'm honest. If you just look at the big markets there, whether it's the U.K. or Germany, and you look at their GDP growth, it's going in the wrong direction. I think what we saw happen in Q4, that a number of large transformational projects, like the two big wins in Germany, for example, at Bayer and Henkel, right, two of the largest HCM deals in Europe in the last year, we've been working on them for a long time, very competitive opportunities, but the customer decided to finally move forward. So, you know, I'd like to think it's because of our execution.
I'm very confident in our team's execution and the leadership we have in Europe. But I think it was a combination of both our execution and the customers finally saying we're going to move forward on these big transformational projects. The one thing I tell people all the time is, you know, a lot of times we get asked by investors, what's happening with sales cycles and so on and so forth. We have now clear evidence that even if someone delays a project that's of size and of magnitude on these big transformations, they don't leave our pipeline. So it's not if they do them, it's when. And when they do them, when I look at our competitive win rates across just HCM only or financials only or full suite, our competitive win rates continue to, you know, accelerate every quarter.
So if we stay the course, we stay engaged with our customers, we get a seat at the table when these transformational projects come up, I think our business will continue to, you know, prosper.
Got it. Got it. Switching gears, I want to dig into the AI strategy, particularly the agent strategy, and correct me if I'm wrong, but it seems like the dividing line for Workday is there's going to be generative AI that gets baked into the platform. It's going to make all the solutions better. The subscription entitles the customers to that. Agents feels like where you guys are looking to monetize when you could add sort of automation, you could add agency sort of to the solution and start to perhaps display some labor in that sense. That's where you feel you could get the bigger productivity uplift and start charging. So we've seen you guys launched a Recruiter Agent, really good traction of Recruiter Agent over the past two quarters. How does the portfolio flesh out over the next, yeah, six months, 12 months?
Like, what does the agent strategy look like over the next year?
Yeah. So I'll go back to six months ago at Workday Rising, where we announced our next generation of our AI strategy called Illuminate, and there were three different areas to Illuminate. Number one, how do we accelerate how people work each and every day leveraging GenAI? The second part was how do we assist people with copilots? The Workday Assistant product, which is part of the core Workday, to your point, people get copilots to help them navigate what they're doing each and every day and how they move around the Workday platform, and then the third part of that is transform, and how do you transform your business to drive a step function change in human productivity? You do that through agents, so we launched that in, you know, September at Rising, and a lot of that we're seeing momentum in today. The Recruiter Agent, right?
We have 4,000 core recruiting customers today at Workday, and we have an opportunity to sell Recruiter Agent back into all of those customers. We have single-digit attach rate, so there's massive upside there for us, and then something like Extend Pro allows people to build on top of the Workday platform through our AI API and our Copilot for developers, so that's where we're at today. Three weeks ago, we announced something called the Agent System of Record, Keith. This is a follow-on to our announcements back at Rising, and the Agent System of Record is the unification of a platform that will serve your entire workforce going forward, whether that workforce is your human workforce or your digital agents that are your new employees coming into the enterprise.
And the reason this has been so well received by customers and partners is because while we're all super excited about agents, these agents are potentially coming into the enterprise as your new employees, completely unmanaged, no governance, no security, no control. With the Workday Agent System of Record, just like we onboard human employees, we need to onboard these digital employees in the same way. So we think the system of record is the power of the platform that we have and to onboard all of your new employees, whether human or digital, it has to be done exactly the same way where you have the potential, and it's a real potential. If you talk to the CIO community, they're very nervous right now, Keith, about what I describe as agent sprawl.
Agents coming into the enterprise, getting access to datasets that no one is governing, no one's giving access rights to. And we think we're uniquely positioned to be that platform for all workforce going forward, both human and digital employees. So how do we monetize that? We monetize it through one of three ways. Number one, our agents, whether it's our Recruiter Agent, we have a new agent that we've announced that's really, you know, an Internal Mobility Agent for employees to start to think about how they move around. We have a Succession Agent. We have a whole bunch of agents. We announced a Policy Agent. We announced a Financial Audit Agent. So we're going to build our own agents. And that's a way for us to monetize, you know, the Workday platform.
At the same time, as others out there start to build agents, we've developed something as part of the Agent System of Record, an Agent Gateway. So when people want to get access and onboard into the enterprise, a new digital agent or digital employee, we're going to monetize this new gateway as people come through and get access to our platform. So it's another way for us to monetize it. And then the third way we're monetizing it isn't through an agent or the Agent Gateway, but it's our products that include AI. An example is Extend Pro. Another example would be what we're doing with something like Talent Optimization, which is a SKU. It's not an agent, but it's 100% driven or through something like Evisort, which is a CLM solution that are 100% AI driven as well.
So we have many different ways to monetize AI going forward. And we think we're uniquely positioned. We've been saying this for many years. We are the system of record for employees. There's three systems of record that matter in the enterprise. You know, it's your employees, your financials, and your customers. And we have two of the three. And we have the most curated dataset to train off of in the enterprise. And we have the context behind that data. That gives us an unfair advantage on how to think about the power of the platform we have today and how we onboard this new agentic world going forward.
Got it. So when we think about the Agent System of Record, you talked about having the security agents. And I think a lot of investors immediately think about sort of identity management companies in the security space, like a CyberArk. You talked about sort of the governance, and we think about data governance structures that we get from like Varonis or Microsoft with their Purview. Is what Workday brings to the equation, like the workflow overlay of that, you have to work with all these various systems to sort of onboard the agents. Is it a kind of a broader Purview that we should be thinking about of what Workday brings to the equation?
Yeah. So if you think about a lot of the companies you mentored or any of the authentication companies, if you go and talk to them about who they engage with most today, it's Workday. Because the onboarding comes through us for whether it's those employees or, you know, getting access to the system of record. So we are the system of record where everyone gets access to it today. Today, they do that typically through an open set of public APIs. Going forward, when you want to start to think about bringing these agents on and start to have agent-to-agent communication, that's where it's going to go through our gateway, right? And that's where we're going to monetize it. We're going to monetize it both directly and indirectly through people building agents, but wanting access to our infrastructure, including the security providers out there.
Got it. So we typically think about Workday selling to head of HR, selling to the CFO in your core system. Does this extend to you guys are now going to be selling to the CIO as part of the system of record for agents?
Yeah, no doubt. And Keith, we have been selling to those three different, if you will, functions, you know, for many years, the CHRO, the CFO, and the CIO. I just look at some of the statistics at our Rising User Conference, and the increase in number of CIOs that now come to that conference is unbelievable. And I think as we think about this new agentic world, I think CIOs, as I spend time with them, one of the things they're nervous about is they don't want to see, you know, sprawl of these agents into the enterprise in an uncontrolled way. They don't want to have the experience of shadow IT, like used to pop up in all the different functions. And they're looking for a way to control, not slow down agents into the enterprise, but get them under control.
How do you peacefully help, you know, your human workers and your digital workers, you know, coexist in a secure way? You need a platform to do that. That's where I think we're uniquely positioned.
Got it. And then if we think about the partnership with Salesforce, when it comes to kind of their agents, is that enabling you guys to sort of access and sort of have visibility into all three of the pillars that you were talking about in terms of employees, financials, and customers?
Exactly. We announced that partnership actually at Rising, where we're starting to have agent-to-agent communications, right? So if you're in Slack and you want to ask a question about your benefits, your pay stub, or anything, you can do that, and you can get access to Workday or vice versa. If you're in Workday and you want to understand what's happening with a customer and it's sitting in our CRM, we're able to do that as well. So that agent-to-agent communication is something I think we're all going to be interested in in the future, but you have to have, again, that gateway to be able to do that. And that's what we're building and we're rolling out. And it won't be just Salesforce. We have with Microsoft, and we have at Zoom and many others as well.
Got it. I want to dig in on the agent pricing itself. You guys have talked about with the Recruiter Agent, you're seeing a 1.5x uplift into your core recruiting customers. Investors have worried about seat-based businesses broadly. Workday does a lot of seat-based licenses overall. And basically the netting equation of that, hey, listen, if the recruiter gets much more productive, maybe you need less recruiters, that's less seats. Can we make it up on volume? Can we make it up on consumption? Can you help us unpack that 1.5 times uplift? Like, what's the equation underneath that that enables you to get uplift? And does it absorb perhaps some of that seat compression?
Yeah. So I'm going to start by talking about this whole notion that sometimes I feel like you talk to people and all human workers are going away because of AI. I fundamentally don't believe that. If you look at every major tectonic shift in the history of time, people, employees, and humans are very pliable. They're adaptive, right? I think we're going to take advantage of these technologies to drive productivity gains. I don't see a big shift where we're going to start to lay off all of these workers. I just fundamentally don't believe that. And that's not a self-serving statement because we do price a significant portion of our business on seats. I just don't believe that's the case. And if that were the case, I think we got a much bigger societal issue we got to deal with.
So I think humans are going to leverage this technology to become more productive and go on to do much more strategic tasks as opposed to the mundane tasks. For Workday, today, a significant portion of our business is seat-based. For example, the Recruiter Agent is seat-based, but we get to sell that back into our customers. To your point, we're seeing a 1.5 uplift over the traditional recruiter. And that's because customers can see tangible evidence of an ROI. One of the challenges I see in the enterprise today with people talking about AI and agents, they're bringing them in, but when they go back to justify or quantify what the ROI is on the spend, they can't do it. Our agents, because they're role-based agents, there's a difference between an agent and a role-based agent. An agent, a lot of the agents, they do a task, one thing.
A role-based agent does multiple tasks and picks up and acquires multiple skills. So we're focusing our agents on role-based agents. And because they're role-based agents, you know how much you're paying someone in a role today, and you know how much you're going to pay Workday. And you can very easily offset the two. And that person doesn't necessarily go away. They go on and do different things. But we're not just focused on seat-based pricing either. We're focused on consumption-based pricing. So for example, something like Extend and Extend Pro, it's consumption-based on the number of calls people are making. Something like Evisort, which is a CLM platform, depending on how many documents and contracts you're ingesting and you're building, if you will, a system of record for all your documents, that's consumption-based. So we're doing both consumption-based, we're doing seat-based.
And then the last one is we roll out more and more agents, and this pricing model is still evolving, but we'll share more as we get closer to the four new agents that we've just launched, and they come to early access for customers in September. We're going to start to think about value-based pricing. Value-based pricing is if an employee costs $200,000 today, right? And we bring out a role-based agent, and it costs $50,000 for a customer. That's value-based pricing for that agent itself. So there's a pricing model based on the value that you're going to bring a customer in a role that it has the potential to work alongside of. So it's a multi-pronged strategy on how we're going to monetize AI going forward. And then the last is, listen, we're going to monetize as people get access over time to the Workday platform.
For a long, long time, people have access to Workday. We don't monetize it. It's always in the best interest of our customers. But as we think about moving to this agentic world, and you have to have agent-to-agent, you know, communications and collaboration, that's a different type of API, and we're going to monetize that going forward with our partners as well.
Got it. Got it. I want to switch gears a little bit and talk about the core financials opportunity. This has been something that's been a big part of the Workday story for a long time. And I think at times something that investors got a little impatient for, right? The idea that there's a lot of on-premise legacy systems and ERP, that's been the case for a while. It's not just the federal government like we see it a lot in terms of larger enterprises as well. And it's been relatively slow going in getting that transformation to take place. We're starting to see some indications that that's starting to progress faster, that we're starting to see more ERP replacements, that the legacy assets are a drag on the overall productivity of the business.
Are you starting to see that on your side of the equation, starting to see some more momentum building in the marketplace to finally sort of get out from under the legacy weight?
Yeah, we definitely are. I think going back a couple of years, you know, when I joined and I was on the board for five years, it was always going to be the year of financials for Workday, right? And we made a conscious decision to really double down on the effort to go after that market. And while some people may think we were really late in doing so, I think we caught the market at an inflection when people started to really trust in the cloud, trust to put their financials in a platform like Workday. And at the same time, there were legacy systems that were soon not going to be supported that were driving people to think about, what am I going to do in the future for my financials? So that has helped us as well.
Some of our competitors are migrating or, you know, forcing, well, not forcing, you have a choice, but you know, the choice is to migrate to the cloud, and I think that's a rich opportunity for us, and I will say in certain industries, like our healthcare business, which is one of our, you know, fastest growing verticals, 80% of our sales into healthcare include both HCM and financials. In state and local government and higher ed, it's more than 50% of our sales include the full platform, so I think we're catching the market at an inflection point where people are much more open to migrating to the cloud, and it's because there's, you know, there's antiquated systems on-premise that are being forced to the cloud.
I think that coincides with our deep focus on financials and doubling down our investment around our go-to-market strategy there and continuing to drive much more internationalization and localization into the product so we can service multinationals and also domestic, you know, companies around the world with our financials platform. I think we're in a good position. We have 6,100 core customers today, Keith, and 2,000 of them are full suite, meaning both HCM and financials. We have a rich opportunity not only to land net new, which includes greater than 30% full suite, but also sell back into our customer base, our financial solution.
Got it. So maybe to sort of wrap up the conversation, we have about a minute left. At the Analyst Day last year, you guys talked about the durability of 15% growth, which I think investors would be very happy to see from Workday over the next couple of years. It's probably a little bit above market growth. Can you help us understand what the equation is for that growth? If we think about what are the core drivers that are going to be durable and enable that from Workday over the next couple of years, what are the key components of that we should be thinking about?
Yeah, we laid out a mid-teens or approximately 15% growth and a 30%, you know, operating margin through FY 2027. You can see the work we've done on the operating margin side paying off. And I think this year, you know, with our current guide for FY 2026, you can see the durability and the diversity of our business coming through in the 14% guide we have. And we do think, you know, over the next couple of years, we can maintain that, if not get, you know, a bit higher as all of these investments we've talked about for the last 30 minutes continue to come to fruition. Our AI strategy, our international market opportunity is as big as it ever been. Yeah, we have some headwinds. The federal government, we talk about going down market to the medium enterprise. We talk about selling financials, right?
I think we just we have a very good sound strategy on growth drivers for the business to maintain that durable growth at scale over the next few years. I think we have, quite honestly, the, you know, an incredible executive team to go out and execute on it. We have the vision, we have the strategy, it comes down to execution. I'm confident that, you know, the executive team and the rest of my workmates that I get to serve alongside of each and every day has the ability to execute to maintain this. The last thing I'd say is, you know, what gives us both the durability and diversity of the business is today at scale, we have roughly 50% of our business net new and roughly 50% back to customer base.
And Q4 was a bit bigger in the customer base, especially with some of our AI solutions being sold back into our customers. That's very uncommon at this scale. And that's something we continue to push on. Our sales force is motivated in two different ways to land new accounts or sell back to the base. And that's something we're not going to pull up on. If we can keep capturing net new customers and sell back into our customer base with our new solutions, specifically AI, that's what gives us durable growth at scale.
Amazing. Carl, thank you so much for joining us. Amazing opportunity ahead for Workday. Thank you for coming in and talking to us about it.
Thank you, Keith. Appreciate it.