Workday $WDAY gains 18% on Silver Lake talks; market value nears $51B

Workday $WDAY gained nearly 18%, its best day since 2016, after Reuters reported that Silver Lake had been in talks to acquire the enterprise-software company. The shares were halted several times in late trading and Workday closed with a market value near $51B, according to CNBC.

The Reuters report said discussions had continued for several months, citing people familiar with the matter. Neither Workday nor Silver Lake had confirmed an agreement, and no offer price was disclosed. The 18% move therefore reflects the market's response to reported talks, not a signed transaction. Workday shares remained 7% lower year over year even after the session's gain.

Workday's latest disclosed operating figures show the cash-flow profile a private-equity buyer would evaluate. Its fiscal 2027 first-quarter release reported total revenue of $2.542B, up 13.5%, and subscription revenue of $2.354B, up 14.3%. Twelve-month subscription backlog reached $8.806B, while total subscription backlog was $27.294B.

The same release showed a 31.8% non-GAAP operating margin and $616M of free cash flow. Cash, cash equivalents and marketable securities totaled $4.353B at April 30. Those figures provide a documented baseline for financing capacity and recurring revenue, but they do not establish a takeover valuation or indicate that Workday's board would accept an offer.

The immediate question is whether the talks produce a definitive agreement. Investors need a filing that specifies price, financing, board approval, termination provisions and regulatory conditions. Until then, the gap between Workday's market value and any transaction value cannot be calculated reliably. Trading halts and unusual volume are market signals, not substitutes for formal disclosure.

Not investment advice. Verify all figures with primary sources before acting.