Workday, Silver Lake in discussions over potential $43B deal

Tech Software & Services Written by: Angela Harmantas 11:04 Fri 14 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Workday Inc ( NASDAQ:WDAY ) View Price & Profile Workday, Silver Lake in discussions over potential $43B deal Published: 11:04 14 Aug 2026 EDT Workday Inc (NASDAQ:WDAY) has held discussions with private equity firm Silver Lake in recent months about a potential acquisition, Reuters reported, with the enterprise software company carrying a market value of about $43 billion. While talks are ongoing and there is no guarantee a deal will be reached, Jefferies analysts said they see several reasons why Silver Lake might be interested. Following the stock's move on the news, Workday's valuation of 4 times calendar year 2027 revenue and 14 times free cash flow sits near the bottom of an already beaten-down large-cap software group. The analysts also pointed to Workday's sticky ERP business, its trove of data valuable for AI, room to lift operating margins closer to peer levels, and a maturing AI vision under CEO Aneel Bhusri. "While we question where Workday's next leg of growth will come from, being private might enable more aggressive AI transition and revenue reacceleration,” analysts wrote. Jefferies said Workday's status as a system of record helps insulate it from AI disruption, citing 97% retention, a strong mix of recurring revenue, 80 million active users and an attractive data moat. On margins, fiscal 2027 guidance of 30.5% implies only 90 basis points of expansion, but the analysts see room to move closer to peers' 40% level via AI and go-to-market efficiency. Growth remains a key question. Financial Management segment growth slowed to 20% in fiscal 2026 from 28% in fiscal 2023, while core HCM slowed to 15% from 21%. International growth also trails the US despite representing half of Workday's $160 billion addressable market. Jefferies pegged sustainable growth at low double digits, in line with the end market. Competition from SAP and Oracle remains intense, with Workday gaining less than 2 percentage points of share from the two rivals over the past five years. Without a "killer app," Jefferies said it is hard to see the company taking meaningfully more share. The stock was up more than 40% since Workday's last earnings report even before Friday's jump, with its free cash flow multiple up more than 60% since June lows. Continue reading