PLEASANTON, California, August 13, 2026, 16:10 EDT — U.S. stock markets did not open for trading.
- Shares of Workday jumped 19.9% following a Reuters report on takeover discussions with Silver Lake.
- The surge boosted Workday’s market capitalization by approximately $8.6 billion.
- The report did not reveal any offer price or details of an agreement.
Shares of Workday NASDAQ:WDAY finished Thursday at $210.19, gaining $34.90, or 19.9%, compared to Wednesday’s close following a Reuters report that Silver Lake was discussing an acquisition of the enterprise-software maker. The share price reached an intraday peak of $227.49.
The increase reflected a significant takeover premium even before an official offer was made. With approximately 247 million Workday shares outstanding, Thursday’s rise boosted equity value by about $8.6 billion. The company’s closing market value stood at roughly $51.9 billion.
This sets up a clear valuation challenge. Workday is currently trading higher than a number of recent analyst price targets, but remains under the session high. Any formal offer must justify a valuation that has already been partially reflected in Thursday’s buying activity.
| Thursday trading measure | Value | Investor read-through |
|---|---|---|
| Previous close | $175.29 | Level before earnings |
| Thursday close | $210.19 | Finished up 19.9% |
| Intraday high | $227.49 | Peaked 29.8% higher |
| Intraday low | $174.62 | Close to previous close |
| Volume | 8.75 million | Elevated volume tied to event |
Reuters did not disclose a finalized price. The outlet referred to the negotiations as talks rather than confirming a completed transaction. This differentiation is important since details regarding financing, board consent, and terms of the deal are still unclear.
| Sample valuation bridge | Computation | Estimated value |
|---|---|---|
| Equity market value before release | $175.29 × 247 million shares | $43.3 billion |
| Closing equity market value | $210.19 × 247 million shares | $51.9 billion |
| Value increase in a single day | $34.90 × 247 million shares | $8.6 billion |
| Net cash available as of April 30 | $4.35 billion in cash and securities minus $2.99 billion in debt | $1.37 billion |
| Implied enterprise market value | $51.9 billion minus $1.37 billion | $50.5 billion |
As of April 30, Workday reported $4.35 billion in cash, equivalents, and marketable securities. The company’s debt stood at approximately $2.99 billion. This brings Workday’s enterprise value to $50.5 billion, around 5.7 times its 12-month subscription backlog of $8.81 billion.
The operating base continues to expand. Subscription revenue for the first quarter climbed 14.3% to $2.35 billion. Free cash flow was up 46% at $616 million, and the total subscription backlog increased 10.9% to $27.29 billion.
| Operating measure | Fiscal Q1 2027 | Year-over-year change |
|---|---|---|
| Total revenue | $2.54 billion | up 13.5% |
| Subscription revenue | $2.35 billion | increased 14.3% |
| 12-month subscription backlog | $8.81 billion | rose 15.5% |
| Total subscription backlog | $27.29 billion | up 10.9% |
| Free cash flow | $616 million | surged 46.3% |
In May, Chief Executive Aneel Bhusri stated that Workday was “ready for this AI moment.” At that time, over 4,000 customers were utilizing at least one Workday-developed agent. The company maintained its fiscal 2027 subscription revenue forecast at $9.925 billion to $9.950 billion. Workday
Analysts began August split in their outlooks, with published targets stretching from $92 to $275. The consensus was roughly $169 prior to Thursday’s results. The stock finished trading at a level approximately 25% higher than the consensus.
| Date | Broker | Recommendation | Price target |
|---|---|---|---|
| July 21 | Morgan Stanley | Underweight | $145 |
| July 20 | CLSA | Underperform | $92 |
| May 22 | Wells Fargo | Overweight | $185 |
| May 22 | Needham | Buy | $180 |
| May 22 | Piper Sandler | Neutral | $145 |
| Consensus | 41 analysts | Buy | $168.64 |
Silver Lake has a track record with significant software deals, but Workday’s size would turn any acquisition into a substantial financing challenge. The most recently reported closing value is already above the $43.3 billion benchmark established at Wednesday’s price.
Risks: Negotiations could conclude without a deal, or a bid might fall short of expectations for traders who purchased close to Thursday’s peak. An extended timeline may additionally leave Workday vulnerable to financing risks ahead of its upcoming quarterly report.
The first hurdle is confirmation. Investors are looking for a Workday filing, details on an agreed price, information about financing, and any recommendation from the board.
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