PLEASANTON, California, August 24, 2026, 07:54 EDT
- Workday traded at $200.81 before Monday’s open, up 0.40% from Friday.
- The price implies roughly $5.1 billion more equity value than the average analyst target.
- Silver Lake takeover talks remain unconfirmed, with no guarantee of an agreement.
- Fiscal second-quarter results arrive after Thursday’s close, making growth guidance the next test.
Workday, Inc. NASDAQ:WDAY traded at $200.81 in U.S. premarket dealing on Monday. That was 0.40% above Friday’s close and 14.6% above August 12.
The price now embeds a sizable takeover option. Using the latest diluted share count, Workday carries about $5.1 billion more equity value than Wall Street’s average target implies.
That gap matters before Thursday’s earnings. Silver Lake has discussed buying Workday, but no agreement is assured. Investors must separate deal hope from the stand-alone business.
| Workday market tape | Price | Move / signal |
|---|---|---|
| Monday premarket | $200.81 | +0.40% at 06:40 EDT |
| Friday close | $200.01 | +1.36% |
| Pre-report close, Aug. 12 | $175.29 | Current price +14.6% |
| Buyout-report close, Aug. 13 | $206.45 | +17.78% that day |
| Aug. 13 intraday high | $227.49 | Current price -11.7% |
Reuters reported on August 13 that Silver Lake and Workday held discussions in recent months. The talks were continuing then. Neither side commented, and the sources warned a deal might not materialize.
The stock jumped 17.8% that day. It has since surrendered part of the spike. That pullback shows the market assigns less than full certainty to a transaction.
| Implied equity-value bridge | Per share | Approximate value |
|---|---|---|
| Monday premarket | $200.81 | $51.1 billion |
| 42-analyst average target | $180.58 | $45.9 billion |
| Premium to average target | $20.23 | $5.1 billion |
| Jefferies target | $225 | $57.2 billion |
| Workday cash and securities | — | $4.35 billion |
Jefferies sharpened that split on Sunday. Analyst Brent Thill raised his target to $225 but kept a Hold rating. The firm sees more than 20% upside if a deal closes and 15% downside without one.
The stand-alone numbers remain solid. Fiscal first-quarter subscription revenue rose 14.3% to $2.35 billion. Twelve-month backlog grew 15.5%, outpacing subscription sales.
| Fiscal Q1 2027 operating comparison | Result | Year-over-year |
|---|---|---|
| Total revenue | $2.542 billion | +13.5% |
| Subscription revenue | $2.354 billion | +14.3% |
| 12-month subscription backlog | $8.806 billion | +15.5% |
| Free cash flow | $616 million | +46.3% |
| Non-GAAP operating margin | 31.8% | +1.6 points |
| Share repurchases | $1.6 billion | 12.0 million shares |
“Workday is ready for this AI moment,” co-founder and Chief Executive Aneel Bhusri said in May. He cited a strong core business and faster AI execution. Workday earnings release
Management guided fiscal second-quarter subscription revenue to $2.455 billion, up 13%. It also forecast a 30.0% non-GAAP operating margin. Those figures become the clean stand-alone benchmarks on Thursday.
| Latest analyst recommendation | Rating | Target | Date |
|---|---|---|---|
| Brent Thill, Jefferies | Hold | $225 | Aug. 23, 2026 |
| Matthew VanVliet, Cantor Fitzgerald | Buy | $220 | Aug. 21, 2026 |
| John Difucci, Guggenheim | Buy | $275 | Aug. 21, 2026 |
| Derrick Wood, TD Cowen | Hold | $220 | Aug. 20, 2026 |
| Tal Liani, Bank of America | Hold | $205 | Aug. 19, 2026 |
| 42-analyst consensus | Buy | $180.58 average | Aug. 21 snapshot |
The consensus looks contradictory. Most analysts recommend buying, yet their average target sits 10.1% below premarket trading. Rapid takeover-driven repricing explains much of that mismatch.
Risks: Talks may end without a bid. Weak bookings or guidance could remove the remaining premium. A financed buyout also faces credit, governance and regulatory execution risks.
Workday reports after the August 27 close. A deal update would dominate. Without one, subscription backlog, 13% growth guidance and the 30% margin target must justify the extra $5.1 billion.
Related articles: NASDAQ:WDAY
