Workday shares post best day in a decade on Silver Lake acquisition reports
Shares of the human-resources software giant surged nearly 18 per cent as reports emerged that private equity firm Silver Lake is in talks to buy the company for approximately US$51 billion.
Workday, Inc. shares recorded their best single-day performance in a decade on 13 August 2026, rising nearly 18 per cent following reports that private equity firm Silver Lake is in negotiations to acquire the business. The rally, which saw trading halted multiple times during the session, pushed the company’s market value from approximately US$43 billion to roughly US$51 billion, an increase of nearly US$8 billion in a single day.
The potential transaction would rank among the largest software buyouts in history. Reuters reported that Silver Lake is in talks to take the human-resources and financial-management software company private, a move that comes after AI fears pummeled the sector throughout the year. Prior to the reports, Workday shares had fallen more than 40 per cent from their 2024 peak, reflecting sustained investor doubt about whether artificial intelligence would erode demand for traditional enterprise software.
Silver Lake has a track record with major technology buyouts, including Dell Technologies, VMware, and Qualtrics. The firm could bring in additional investors, similar to its partnership with Saudi Arabia’s Public Investment Fund and Affinity Partners on its roughly US$55 billion take-private of Electronic Arts last year. Analysts noted that Workday CEO Aneel Bhusri and Silver Lake’s Egon Durban have a strong personal and professional relationship, which could facilitate a deal.
Market reaction has been mixed regarding the implications for the broader software sector. Brian Mulberry of Zacks Investment Research suggested that a completed deal would be strong evidence that public markets over-discounted software stocks due to AI concerns. However, Cantor Fitzgerald’s David Siffringer offered a more sceptical view, joking that “the PE put is back,” implying the talks may reflect private equity’s need for deals rather than genuine confidence in the sector’s future.
Workday itself has posted better-than-expected results and raised its forecast on AI tailwinds, serving more than 11,500 customers including Netflix, U.S. Bank, and Johns Hopkins University. Despite this, revenue growth has slowed from 16 per cent two years ago to 13 per cent in fiscal 2025. Private equity firms have largely stayed on the sidelines of large software buyouts this year because AI makes it harder to judge future value, meaning a Workday deal would be a major test of that appetite.
Nothing is confirmed, and sources cautioned there is no guarantee a deal will materialise. Workday was held by 63 hedge funds as of the first quarter of 2026, down from 70. Until a deal is signed, the stock’s move reflects hope about a takeover rather than certainty, leaving investors to weigh the potential vote of confidence against the ongoing uncertainty in the software market.
