Kash Rangan

Mike cited removal of technical barriers, innovation delivery, and Fast Shift program. Doubled migration seats YoY. Cloud raised. Customers in every geography and industry already migrated provides confidence.

Joe reaffirmed 20% CAGR commitment citing multiple growth levers. Mike highlighted Teamwork Collection exceeding expectations with major automotive and chip company wins citing AI as a core reason for moving.

Mike dismissed tariff concerns citing business health, diverse customer base, and enterprise now 40%+ of sales. Said Brian Duffy doing an excellent job after three months.

Mike framed pricing as value-driven with R&D improvements far exceeding price increases. Consumption pricing already present across several areas and will feather in over time.

Mike provided concrete data on AI adoption rates and customer behavior, directly addressing seat cannibalization concerns with evidence of increased engagement.

Garrett outlined core AI requirements: vast domain data, strong data semantics and models, formal business process descriptions, and target outcome specification. Argued Workday uniquely has all of these with 50-75M users, 70,000 core business processes, and clean unified data model. Sana added as AI experience layer on top.

Carl argued Workday's entrenched position (11,000+ customers, 65% Fortune 500, high-90s gross retention) makes it a go-to AI provider, not a disruption target. 70%+ of customers already on Illuminate, 30% of base deals include AI SKU, 70%+ of net new include AI.

Carl dismissed the concern, noting that AI is software and Workday is leaning heavily into it. Did not see OpenAI's SaaS ambitions as a specific competitive threat.

Carl noted 30% AI SKU attach rate for second straight quarter, with Recruiting Agent and Extend Pro both nearly doubling QoQ. Zane confirmed renewal baseline growth for FY26 is similar to prior year. Create-and-close momentum was strongest all year.

Carl cited AI momentum (Recruiter Agent, Talent Optimization, Extend Pro), partner ecosystem growth, federal push, full suite adoption at 35%, and medium enterprise expansion as growth vectors.

Sandeep attributed services deceleration to pricing lap across payments and payroll. Core momentum remains strong with charge volumes 18% (29% including bill pay). Innovation driving future platform adoption.

Sasan noted low reliance on search (<15% of traffic). Three go-to-market dimensions: one-to-many campaigns, one-to-one mid-market sales, and platform cross-sell. Sandeep added AI traffic converts at order of magnitude better rate.

Sasan cited 90%+ recurring revenue, mission-critical positioning, and low-cost disruptor status in assisted tax and mid-market as resilience factors.

Sasan outlined $100B mid-market TAM, expects business group to grow 15-20% with online as largest driver. Mid-market to be 10-year growth driver.

Nadella said Microsoft says no to demand that's too concentrated by customer, location or skew; single-meter AI accelerator-only demand does not fit the fungible fleet strategy.

Hood anchored capex to the contracted backlog and said she won't pick a 'crossover date'; demand improving faster than supply, focus is on building capacity and winning share.

Hood said AI margins are better at this stage than the server-to-cloud transition; Nadella framed hyperscale as a software efficiency business over time.

Satya said the ~$10 billion AI run rate is already all inference across enterprise and first-party products like GitHub Copilot and M365 Copilot, not raw GPU sales.

Bill explained that customers are killing proof-of-concept experiments and coming to ServiceNow for integrated workflows. Getting customers live in weeks not years. Amit added 100+ prepackaged agentic workflows and forward-deployed AI black-belt engineers for co-innovation.

Bill cited enterprise complexity as ServiceNow's moat, trillions of transactions, compliance, regulatory environment, and six decades of enterprise understanding. Predicted hyperscalers will lean more into ServiceNow as partners, not less.

Amit explained Moveworks adds 500 AI engineers, unified user experience with enterprise search, and requester capabilities complementing ServiceNow's fulfiller strength. Bill noted pipeline remains strong and CEOs are asking for speed above all else.

Bill explained the hybrid model lets customers start with predictable subscription then scale via consumption as agentic AI delivers ROI. Gina confirmed the 20% CC guide prudently factors in the consumption transition and federal back-weighting, and growth would be higher without those factors.

Shantanu cited three vectors: $0-$250M new AI products, DX usage metrics (campaigns, engagement, AEP transactions), and creative generation volumes (24B cumulative) showing underlying adoption.

Shantanu noted Adobe has a diverse business, seasoned management team, and tariffs do not impact Adobe like other businesses. Reaffirmed guidance assuming current macro.

Shantanu drew parallel to cloud transition, said all three customer groups will see TAM acceleration from AI. Believes AI is clearly a tailwind, not a disruption.