Workday Jumps After Report Silver Lake In Talks to Buy

Reuters reports that private equity firm Silver Lake is in talks to acquire Workday, valued at about $43 billion. Discussions with Workday have been ongoing for months and could involve additional investors, sources say. Workday shares are down about 15% this year and over 40% from a 2024 peak. No deal is assured.

U.S. stocks rose after the BLS reported PPI was unchanged month over month and up 4.7% year over year, with core PPI up 0.2% m/m and 4.2% y/y. The S&P 500 closed at a record 7,798. Chip stocks led: Sandisk (SNDK) +13.7%, Micron (MU) +4.2%. Cisco (CSCO) fell 8.4% after earnings; Workday (WDAY) jumped 17.8% on takeover chatter.

Reuters reported that private equity firm Silver Lake is in talks to acquire Workday (NASDAQ:WDAY), prompting a 25% share surge. Trading was halted three times on circuit breakers. The article says talks have been ongoing for months and no deal is assured. Workday’s market cap is about $43B.

Reuters reports private equity firm Silver Lake is in talks to acquire Workday, valued at about $43 billion, in discussions held over recent months. Sources say talks are ongoing with no deal guaranteed. Workday shares are down about 15% this year and over 40% from their 2024 peak, amid concerns about traditional software versus AI.

Software stocks fell Thursday after quarterly results from Datadog, Figma, and HubSpot. Datadog shares dropped more than 15% despite beating revenue and earnings; adjusted gross margin was 80% versus 80.7% consensus. Figma also fell after warning of higher AI inference spending. iShares Expanded Tech-Software ETF (IGV) fell over 2%.

Workday (WDAY) shares rose about 11% after hours after the HR software company beat fiscal Q1 revenue and earnings expectations and raised its full-year margin outlook. Revenue grew 13% to $2.54B and adjusted EPS was $2.66. For fiscal Q2, it guided 30% adjusted operating margin and $2.46B subscription revenue, and lifted full-year margin to 30.5%.